No Tags Found!


nikhil_cloud
Some of our employees are asking us to remove the PF contribution. Is there any way considering we have voluntarily opted for the same? Which document is to be handled in this case so that it will not be a compliance issue?

We have 10+ permanent employees and we are deducting PF from all as of now.

Please do share alternatives/workarounds if possible to have minimum PF if there is no option to skip the PF.

Note - Employees have UAN already.


saswatabanerjee
2383

Once PF is registered for, there is no exemption or option to cancel it.

Further, once a person is under PF, he continues to be under PF even if his salary crosses the threshold.
Therefore, there is no such option where they can opt out.

From India, Mumbai
nikhil_cloud
Thanks, Saswata. I have 2-3 employees where there is PF but the last organization was not deducting the PF as they were not registered, so employees are asking if there is any provision for the same.

saswatabanerjee
2383

If an organisation has less than 20 employees, they need not register for PF and therefore they would not have pf deductions for their employees. But once you have registered, there is no option to opt out.

When the employee joins you, if his salary is above 15,000 (PF Salary, that is excluding HRA), and he has no existing PF account, he can opt for an exemption. But once he is in PF, then statutorily applicable PF is to be deducted and contributed.

I suggest you show them how PF benefits them. Once because you are contributing also, second because it is forced saving and third, it is the best interest rate they can get, and tax-free (plus insurance under EDLI)

From India, Mumbai
nikhil_cloud
Yes I understand the benefits of PF, but nowadays people are more to in hand. :( They want more in hand.

rkn61
624

Mr. Nikhil,

It is always better for your employees to continue to become members.

Apart from the benefits, Mr.Banerjee has highlighted, others are
- PF is a social security benefit
- Your employees shall become members of PF either in your company or
elsewhere where PF is covered.
- If they put in minimum 10 yrs of service, they shall be entitled to a life long pension
- They are entitled to avail Refundable Loan and Non-refundable loan depending upon
the corpus lying in PF with their individual accounts. (for Housing, Children's higher
education, Daughter's marriage etc)

Please discuss these with your employees

From India, Aizawl
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.