Understanding PF Compliance: Can Employees Earning Over 6500 Be Exempted?

Hello,

Is it required to comply with PF if any employee is receiving more than 6500 Basic + DA?

If management wishes to exempt those who are receiving more than 6500 basic + DA, what is the procedure? Please help me.

Regards,
Sarjerao

If the salary of an employee at the time of joining is more than Rs 6500, he can be an excluded employee, and in such cases, he need not be covered by EPF. However, if he is already a PF member and his salary has been subsequently increased beyond Rs 6500, then he cannot be excluded. An employee once covered by EPF will continue to be covered irrespective of any salary hike.

Regards,
Madhu.T.K

If an employee has contributed under the PF Act before in his employment, he shall continue to contribute to the PF regardless of the salary he is currently drawing. In case it is his first job and the salary exceeds Rs 6500, then it is optional for him to decide whether to contribute or not.

I have applied for EPS withdrawal scheme along with the relevant Form 10C. How many days will it take to get the claim of my EPS?

Hi, Mr. Jatin,

P.F. is on basic + da, and the ESI is to be deducted on all components except washing allowance. The rate of the employee's contribution is 12% under PF and 1.75% under ESI.

V.K. Gupta

So, as for the definition of an employee under the EPF Act, any employee receiving a salary over and above 6500 per month is considered an excluded employee, and there is no need to deduct or pay the contribution for these employees. However, if you are considering the contribution paid towards PF in CTC, it is advisable to deduct and deposit the PF. It is safer and also beneficial for the welfare of the employees.

Thanks,

S.A. Mishra
Vadodara

E: P.F. Compliance

So, for the definition of an employee under the EPF Act, any employee receiving a salary over and above 6500 per month is considered an excluded employee. There is no need to deduct or pay the contribution for these employees. However, if you are considering the contribution paid towards PF in CTC, it is advisable to deduct and deposit the P.F. It is safer and also beneficial for the welfare of the employees.

Hi,

I have joined a company from 1st July 09, and Rs. 2400/- monthly PF deductions were made from my CTC. I worked there until 3rd November 2009 (4 months). When I requested the HR department for the withdrawal of PF amount, they replied that for the withdrawal of PF amount, one must complete a minimum service period of 6 months with the company. Is it true? I also have a PPF account with SBI for the last 3 years. Can anyone help me with whether I will get the PF money?

Best Regards,
Alauddin Shaikh

Dear Rajesh,

As per policy, the employer will forward the claim form of PF to the PF authorities two months after the date of resigning. So, you will receive the payment within 2 and a half months after your resignation. In some cases, such as going abroad for a job, you can provide the Visa copies to the authorities; it may help you to claim your PF amount sooner.

Renjith

Hi, Mr. Shaikh,

PF contribution is bifurcated into two heads, i.e., PF and Pension. 8.33% of Basic and D.A goes into the Pension fund, and the rest goes into the PF fund. To claim the pension fund, you need to complete at least 6 months; otherwise, you can withdraw the amount accumulated in the PF fund only.

Amit Kaushik

Hi,

Yes, it is true that you have to work a minimum of 6 months in that company before you can withdraw your PF.

Regards, Nalini

Dear Rajesh,

After the resignation of an employee, it takes approximately 2 months for the process to be completed at the PF office. Subsequently, it takes an additional 45 days for the deposit to be made.

Hi Nalini,

If an employee works for a 3-month period, they will receive Form-19 but not Form 10(c).

Malini

It is not correct to say that a 6-month contribution to the EPF is required to make a member eligible to withdraw the amount from the EPF account. Form 19 can be submitted no matter how long the member has contributed. However, to claim the amount due to the member under the Employees' Pension Scheme 95, a minimum contribution period of 6 months is required to claim the amount by submitting Form 10C.

Sanu Soman
Manager, HR

Dear Jatin,

Please see the attached file, which will clear your doubt.

P.F. applicability is on a single day of working, and you can withdraw your P.F. very much, but your contribution towards pension, i.e., 8.33%, will not be refunded. You have to apply only in Form No. 19; no need to fill Form-10C. Thanks.