Recently one of our Ex-employee applied for P.F withdrawal through online vide Form No.19, whereas it has been rejected on the ground that “ Claim rejected contribution received on higher wages required to submit confirmation letter regarding permission acquired”.
1) While contacting P.F Office they informed that as per P.F act we should have to take permission from Assistant P.F Commissioner for higher wages contribution with joint consent from employer and employee, stating that the organization is ready to pay all the administration charges. However, we pointed out that once we are paying administration charges while paying higher wage P.F contribution, what is the relevance of such provision and till date the P.F Department has not objected on higher wage contribution and settled all the claim even accumulated contribution more than Rs.1.00 corres till the joining of new P.F Commissioner.
2) They also informed that a new employee is not supposed to a member of P.F if the Basic Salary is above Rs.15000/-. In case employer and employee submit joint declaration for higher wage contribution, till we receive the approval of Asst. P.F Commissioner, we cannot submit ECR of particular employee and thereby P.F of such employee.
3) Is it the discretionary power of Asst. P.F commissioner to reject or accept the joint consent by both employee and employer?
4) In case an employee already a member of P.F with less than Rs.15000/- and once he cross the limit after increment over a period of time, whether we have to take permission for higher contribution of such employee?
5) While registering an employee at P.F site during his joining (1st time P.F Member - Fresher) , the basic salary is to be entered. If the basic salary is more than Rs.15000/- then the system deny EPS membership and only EPF can be deposited through ECR even though the member and organization is ready to contribute EPS also. In other words, new employee (fresher) is not eligible for EPS for life time? Right now we are by passing the system by entering an amount below 15000/-. Is it right practice?