Hello Everyone, I have a query regarding the Provident fund. Every company is bound to give PF to every ee. But if they don't want to provide this benefit to a particular ee and want to save themself for giving PF. So is it legal to exceed the amount of Basic+DA+SA more than ₹15000/- kindly clarify?
From India, Gurgaon
Dear Riinii,

EPF and EPS are statutory social security measures to give succour to the working class people when they become no more productive due to old age. Not only it is a scheme of forced savings, a measure of tax avoidance but also a kind of indirect contribution to the hike in the real wages in the long run. Just to escape from this scheme or to increase the take home salary, the employee may prefer opting out but it tantamounts to ' contracting out ' which is prohibited in Labour Jurisprudence. If the employer encourages such a wrong tendency of the employee and also increases the salary intelligently just above the threshold, it is an indication of lack of Corporate Social Responsibility for charity begins at home only. Whether it's a question of legality or not, certainly it is a question of the total quality of the management.

From India, Salem
First of all once the member of EPFO, it is not allowed to discontinue membership even the salary is above the statutory limit. If any employee join from another organization with salary more than 15,000/- per month but he/she was EPFO member, then also the membership will continue.

Only in case of excluded employee ( fresh joining with more than 15,000/- per month salary or earlier covered under EPFO but settled everything subsequently joining another organization with more than 15,000/- salary per month etc.) are not covered under EPFO.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi

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