PF Deduction For New Employee Paying PF In Earlier Employment

amitsonu
Hi,
We got case wherein we need some expert opinion to convince the management of the Company. One employee joined recently and he was paying PF during this earlier employment. His Basic + DA was above 20,000.
Now in our Company, we work with the ceiling of 6,500. The employee has a claim that we must deduct his PF on the basic ceiling of 6,500 as this is his right and must be done as per PF act.
Please advise if this is possible. I will be needed some reference from the ACT or any Judgement regarding this.
Thanks
Monika
sumitk.saxena
Dear Monika
Greetings for the day,
First of all you should be aware that Deduction of EPF should be done on Basic+DA+Food Conc.(if Any), Then basic wage should not kept less than the minimum wages of the state, thirdly On Wages upto Rs. 6500/- the deduction of EPF is must.Fourthly once a member become the member of EPFO he can't be exempted as the salary hike above the ceiling.It is solely depend on the company rather they pay EPF accumulation on actual basic or upto the cealing of Rs. 6500/-. Last but not least the cealing of Rs.6500/- is only for EPS & EDLI.
Thanks & Regards,
From,
Sumit Kumar Saxena
pathania shivani
Dear Sumit
Thanks for sharing, Request you to share the reference of ACT or Judgement.
As I need to show the reference with my seniors.
Is it mandatory if in previous organization PF was deducted then we have to deduct it.
I have seen in many companies, Basic + DA is more then 6500 then to avaoid PF deduction, employer will take form 11 from new joinees. Is it as per law that if we have Form no 11 for all these employees so there is no obligation to deduct PF.
Pl revert....
Thanks & Regards
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute