Hi,

My Current organization is Deducting PF amount of Employers & Employee contribution from my Gross Salary.

My Monthly gross is 30000 which includes Basic of 15100. The PF calculated is 1800Rs.
Here from my Gross 30000, PF amount of 1800*2=3600 , total 3600 is deducted.

My monthly take home/In hand salary is 26200.

Kindly let me know how & why company is not giving contribution of PF.
If wrong, please let me know how I proceed further legally.
12th July 2017 From India, Mumbai

Dear Lalit,

You need to confirm with your company if they are counting 30000 /- as gross or CTC. Employer share of PF is normally shown in CTC but not in gross salary. Also, as your salary is more than the prescribed limit of Rs. 15000 /- thus no PF is applicable to be contributed by the organisation thus please check with your HR team.
12th July 2017
Manoj Kamble
Sr HR Executive
Hi,

Since I'm not clear with you question, I will try to answer it based on my understanding.

From you query, I believe that PF Wages they have taken is only Rs. 15,000. Instead of deducting Rs. 1,800 from your salary, they have deducted Rs. 3,600 (including employer share) from your salary. As per Act, this is absolutely wrong.

To confirm my statement, you need to download your PF passbook from PF Website. See whether the Employee contribution is Rs. 1,800 or Rs. 3,600. Then, you can conclude.

Let me know for any clarifications.
12th July 2017 From India, Chennai
Saravanan
Manager - Payroll & Liasioning
Chennai
Dear Members,

I have a query regarding voluntary contribution and exempt employee. Here is the situation:-

An employee who is already has an UAN number (from his previous employment) has joined us and wants to continue PF contributions even though his salary in our organisation is above the PF ceiling of Rs. 15,000/-.

Member registration based on existing UAN is not going ahead because there is a mismatch in his Date of Birth (his actual DoB as per AADHAAR and other records is different from what is registered against his UAN by his previous employer). The person has told that he has submitted, through his previous employer, a joint declaration / application for correction in his DoB which has not yet been done by the concerned EPF RO.

Under the circumstances, I can neither register him with the incorrect DoB (so as to match his UAN record) because it would be like perjury, nor register him as a new employee for a fresh UAN. Presently my only recourse appears to be to consider him an "excluded employee" and not transfer his UAN to the company.

My questions in this regard are:-

a) Since he is already a member of EPFO, is it compulsory to contribute to PF even though he has crossed the ceiling limit? I am a bit confused about the statement "in case, you have been a member of EPFO once, then you are not allowed to opt out of the scheme" in this site: All Employee Provident Fund Questions Answered

b) can he be considered an "excluded employee" and he voluntarily stops PF contribution?

c) If he is an "excluded employee" , does the company liability towards his PF contribution also cease?

d) How best to deal with this situation?

Advise from the experienced forum members would be much appreciated.
12th July 2017 From India, Kochi
Arun
Mr. Arun,

Generate a new UAN for the member in your current organization.

Ask the member to activate UAN using new mobile number.

Employee can link his previous PF account using 'ONE EMPLOYEE ONE EPF ACCOUNT' scheme available in EPF Portal. His previous UAN will be deactivated once he done this step.

Once it is linked, he can able to transfer his previous PF account fund to the current account after updating the KYC in the current account.

Let me know for any clarficiations.
14th July 2017 From India, Chennai
Saravanan
Manager - Payroll & Liasioning
Chennai
1. He can opt out of the scheme. Besides, employer has no statutory obligation to contribute towards PF if basic pay exceeds 15 K. Some companies have a policy where by they do not make employee a PF member if the basic pay exceeds 15K.

2. Where company has a scheme of having PF members whose basis pay exceeds 15 K, indl , who wants to be excluded, can do so by submitting an application that he does not want to become a PF member. There is no compulsion.

3. Company liability also ceases automatically as there is no statutory obligation on contribution when basic pay is in excess of 15 K.

Hope that clarifies

Anil Raina
14th July 2017 From India, Delhi
The Act clearly mention that if an employee is existing member of PF (from his previous employment), he can't opt out from PF contribution even he crosses the slab of Rs. 15K.
If somebody defer from my above statement, please validate their statement with enough Proof from PF Act.. I can learn..
14th July 2017 From India, Chennai
Saravanan
Manager - Payroll & Liasioning
Chennai
There are two situations :

1. When employee does not want to continue as PF Member in the new organisation :The rule position is that if an employee settles his PF Account & fills Form D & gives a declaration in an affidavit to that effect to his new employers that he has settled his PF Account, then he comes in the category of "Excluded Employee". Hence, out of the PF Ambit.

2. In case employee wants to continue to retain his PF membership & company does not have PF membership for employees drawing basic pay more than 15 K, then employer's liability is restricted to 12 % of 15 K ie : Rs 1800/- per month.

Anil Raina
14th July 2017 From India, Delhi
Mr. Anil,

So, as per the first case, the employee has to close his previous PF Account. In other words, in the time of Joining, the employee should have withdrawn his previous PF balance. Then only, he can opt for so called "Excluded Employee" category. For eg., employee left the company - no employment for 2 months - applied for withdrawal & received the same - joining in another company. This example will be suitable for excluding the employee from PF. If an employee is joining immediately from previous employment, he can't opt for excluding the PF.

In this case, (given by Mr. Arun), the employee is currently holding his previous PF account. So, he cannot opt for "Excluded Employee" category.
14th July 2017 From India, Chennai
Saravanan
Manager - Payroll & Liasioning
Chennai
Dear Friends,

Thank you Mr. Saravanan and Mr. Anil Raina for the valuable inputs.

My own appreciation of this case (that the employee cannot opt out of PF till he withdraws his existing PF account) has been reinforced by your inputs.

As regards Mr Saravanan's suggestion that I open a fresh UAN for him, Will the employee be able to link his existing UAN to the new UAN (remember there will be a mismatch in Date of Birth between the two UANs)? I guess I will have to leave it to him & his previous employer to deal with & sort out the issues in his existing UAN.
15th July 2017 From India, Kochi
Arun
 

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