X was offered salary in CTC during his Joining and X opted out from PF and ESI as he is eligible to opt out in all conditions. Since CTC is informed will X get Employer contribution of PF & ESI added to salary? Yes or No please provide with valid reasons or case law.
From the Opinion of CA's I'd found that difference amount has to be paid to the employee as CTC is mentioned. So, question is not on Employer Contribution to be added back to Salary. (For example Employee offered with 35000 CTC and Net pay is 31,250. But in this case Employee opted out from PF. So CA inform difference amount has to returned back to employee and their is no possible deduction which can be made expect Professional and IT. So it will lead to audit issue.)
In Candidate offer it was mentioned 35000 CTC. But even after opting out his Net salary is 33,050. Since, employer contribution is missing his CTC is getting reduced. As Employee has the weapon of Offer Letter. What should employer do?
once an employee get enrolled as contributory member of EPF there is no option to leave it, but he has to be contributory till his last day of wages or 58+ yrs of age
ask the CA to get updated
Hi Glidor,
Employee has option to opt out from PF on certain conditions. 1) If employee till date has not enrolled in PF. 2) If employee having PF and trying to shift new company then in the new company he has option to choose or Opt out. If opting out then Form 11 has to be filed. Employee is eligible to opt out only if Basic > 15000. So only I had mentioned Employee is eligible to opt out on all conditions. In My case Employee till date dint had PF and he is not willing to having PF.
if the employee has an active UAN he can not be excluded
furthermore , the EPS account withdrawal has been stopped untill the emplyee reach 58+ of age, so the UAN remains active and exclusion is not applicable
two exemption in male employee 1) leaving india permanently ( document required) 2) death .........and additional exclusion for female employee that due to marriage she is not willing to work in future .............apart from these , form 10C /10D settlement is not possible unless the member achive 58+ of age
Hi ,
As per my understanding. Employee can opt out from PF which is purely on Employee decision as Employer will always try to include in the PF. Furthermore, Government has given the leverage of opting out of PF. However, in my case employee till date has no PF and neither willing to take PF.
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