An employee have PF before but in his new company his Basic + DA does not fall in the PF slab i.e. 15000/- Is he eligible for PF? and is he can continue PF in his new company?
From India, Guwahati
From India, Guwahati
yes, as the employee is already subscriber of EPF the old UAN would be seeded by the new employer and contribution should be paid, wage ceiling does not effect the applicability
630
It's not only that he 'can' continue having PF
It's that by law, he is required to continue his PF contributions if he has joined a new company that is covered under PF.
the exemption is available only to those employees who do not have any PF account st time of joining the new job
From India, Mumbai
It's that by law, he is required to continue his PF contributions if he has joined a new company that is covered under PF.
the exemption is available only to those employees who do not have any PF account st time of joining the new job
From India, Mumbai
@saswatabanerjee would it be possible to have the exact clause under which PF is mandated to be continued when a new employee joins at a salary above the threshold but had a PF account with his previous employment?
From India, Chennai
From India, Chennai
Dear Gautam, Please check if an employee had withdrawn his PF from earlier employer and joined you then you may need not to deduct any PF contribution for him.
Please obtain EPF Form # 11(New) from the Employee.If he is already covered under EPF & EPS, you have to continue to cover him though his entry level EPF Wages is more than the ceiling of Rs15,000/-. But, Employer has right to restrict EPF/EPS Contributions to EPF Ceiling of Rs15,000/-
From India, New Delhi
From India, New Delhi
Dear FIMDIR,
The provision is in the definition of exempted employee in the PF scheme. A person who fulfills both conditions only will be exempt. So if he has got existing accounts then he fails the clause (i). Then he can not be exempt even if has joined at higher salary than specified in clause (ii)
f) “excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew
the full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to
become a member of the Fund, exceeds [fifteen thousand rupees] per month;
From India, Mumbai
The provision is in the definition of exempted employee in the PF scheme. A person who fulfills both conditions only will be exempt. So if he has got existing accounts then he fails the clause (i). Then he can not be exempt even if has joined at higher salary than specified in clause (ii)
f) “excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew
the full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to
become a member of the Fund, exceeds [fifteen thousand rupees] per month;
From India, Mumbai
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls