Dear Members,
Had query regarding Opting out of PF.
I) As per the rule a new employee joining a company can opt out of PF :
> If his basic + da exceeds 6500/-
> If he submits form 11 which is in the form of a declaration by the employee that he has not been a member of PF or has withdrawn his PF accumulations or is a PF Pensioner.
In such a scenario, can an Organisation refuse the employee from opting out of PF stating that irrespective of their basic salary all employees are compulsorily covered under PF. Can an Organisation state that as per Company policy, all employees come under PF.
II) Second scenario
If an employee joins a new Company and the employee wants to continue with PF and the Organisation refuses stating that all their employees draw basic beyond 6500/- and the new employee is also given a salary breakup with basic exceeding 6500/-. As a policy they do not provide pf to employees drawing more than 6500/- basic. Is this legal? Can an employer avoid PF ACT?
Basically, the question is whether in cases of opting for or out of pf, can the Organisation refuse as per their set policies and procedure. Kindly guide.
Had query regarding Opting out of PF.
I) As per the rule a new employee joining a company can opt out of PF :
> If his basic + da exceeds 6500/-
> If he submits form 11 which is in the form of a declaration by the employee that he has not been a member of PF or has withdrawn his PF accumulations or is a PF Pensioner.
In such a scenario, can an Organisation refuse the employee from opting out of PF stating that irrespective of their basic salary all employees are compulsorily covered under PF. Can an Organisation state that as per Company policy, all employees come under PF.
II) Second scenario
If an employee joins a new Company and the employee wants to continue with PF and the Organisation refuses stating that all their employees draw basic beyond 6500/- and the new employee is also given a salary breakup with basic exceeding 6500/-. As a policy they do not provide pf to employees drawing more than 6500/- basic. Is this legal? Can an employer avoid PF ACT?
Basically, the question is whether in cases of opting for or out of pf, can the Organisation refuse as per their set policies and procedure. Kindly guide.