Saswatabanerjee
Partner - Risk Management
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
PFL
Manufacturing

Prime Sponsor - FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Sir, My basic salary was 10,000/- in the month of june 14 after declaration of pf ceiling my basic salary has been change to 15,500/- in july 14 acc to hr manager. Regds Vikash
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear PFL, This is the practice most of the employers are adopting to keep the employee out of PF ambit. It seems your employer has done reshuffling / restructuring your salary / CTC.
Exemption from PF act can only happen via filing of form 11
That is a declaration by the employee :
A. That your starting salary is above the specified limit
B. That you do not have an existing pf account
C. That you wish to claim exemption
So if you do not give the declaration, the company has to deduct the pf and pay it to the government with the employers contribution. Exemption is not an automatic right of the company. It is a right of the employee under certain circumstances.
Further, even if you are above the limit, you can make voluntary contribution, but the employer is not required to give matching contribution.
Dear Saswata ji, May I request you for supporting provisions in EPF&MP Act or there any notification, any circular, guideline in respect to your above quotes?
Dear Saswata ji,
It seems there is a problem with the quoted statements. Quoted statements are deleted from my above post and therefore, the post is sounding improper.
I raised the issue in regards to your following two statements in 'quotes'.
1. Exemption from PF act can only happen via filing of form 11
2. If you are above the limit, you can make voluntary contribution, but the employer is not required to give matching contribution.
I raised the issue since up till now, my understandings on Form 11, excluded employees, contribution beyond statutory limit, voluntary contribution etc. are different My understandings on this subjects are discussed by me in various posts on mine in this forum. I always delivered my same understandings to various platforms including in my lectures and seminars which seems to be wrong now. Therefore, I want to conform your quotes with supporting proof.
Unfortunately, i am not in office, else i would have replied immediately.

Perhaps i misformed the statement.

What i meant is :

1. If an employee has a starting salary above the limit (earlier 6500, now 15000 per month), and he does not have any existing PF account, he can give a declaration in Form 11 and claim an exemption from PF. It is a right of the employee to claim exemption if he meets the criteria but it is not the right of the employer to enforce the exemption. He cant say - no you will not get PF even if you want it.

2. Even if your salary is above the limit and you opt for PF, deduction will be made on the max salary that is stated - 12% of 15000 and a contributing amount from the employer. Above that limit, you can deduct PF voluntarily higher amount, but the employer is not liable to give matching amounts.

(I did not state this clearly. But to change the original post now would vitiate the thread)

I apologise for writing it in a way that gave a wrong interpretation.

If you still need, I can quote the sections tomorrow when i am in office.....


Prime Sponsor - Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™