Understanding PF Exemption Rules and EPF Coverage for Employees

Dear All,

I was a member of PF in my previous job, but now I have changed my job. Please tell me if I can opt for PF exemption in the new organization so that there should be no deduction of PF. My basic salary is above the limit of PF.

Thanks

An employer who engages more than 20 employees is only entitled to enroll in the EPF. If in your present organization there are fewer than 20 employees, then you cannot be enrolled in the EPF.

If in your organization there are more than 20 employees, then you are entitled to PF even if you have crossed the EPF limit. This is only possible if your employer has taken a policy that all employees who have crossed the EPF limit need to be covered.

If your employer decides to cover all employees, irrespective of their salary, under the EPF scheme, then you will also be entitled. Otherwise, you will not.

Dear Shri. Narendra ji,

What I understood is that you wish to be excluded from coverage of EPF because your basic salary is now more than Rs. 6500/- p.m. An employee who was once covered under EPF has no option to be excluded from EPF upon exceeding a salary beyond Rs. 6500/- p.m., even if they have changed their employment.

Form 11 is compulsory at the time of joining employment, and based on this form, the employer must decide whether the new employee should be excluded from EPF or not.

Members of the forum are requested to provide comments on this matter.

Thanks with regards,
Keshav Korgaonkar

Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and salary, Shantadurgaent.com, Labour Compliance Audit, SSI registration, NOC from

It is true that when an employee is covered by PF, regardless of salary fluctuations, they are entitled to pay PF if they continue working with the same employer. However, if the employer changes and implements a policy where employees earning more than Rs. 6500/- are not required to enroll in the EPF, then the employee has the right not to pay PF when their salary exceeds Rs. 6500 upon joining the new company.

Other members, please make your comments on this subject and make it an interesting topic. Finally, we will seek input from authorities or experts. There is a deviation, and there is ambiguity.

Thanks and regards,
Keshav Korgaonkar

Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and salary, Shantadurgaent.com, Labour Compliance Audit, SSI registration, NOC from