If the Basic Salary of the employee is more than 6500+ and he doesn't want to deduct PF - Is any form for Undertaking?

Dear Team,

If the basic salary of the employee is more than $6,500 and he doesn't want to deduct PF or avail Provident Fund facility, is there a form for undertaking or what is the procedure? Please help.

Mathu

Hi,

PF exemption can be availed once Basic+DA is more than Rs. 6500. At that time, we should obtain a NON PF DECLARATION FORM from the employee for acceptance. If an employee would like to avail PF benefits, he/she can do so. In case of further doubts, please let me know.

Thanks,
Pons

Dear Mathu,

If an employee's Basic + DA is more than Rs. 6500, then if the employee and employer do not want to deduct his PF, he can. The only way is to fill out Form No. 11 and inform the PF office accordingly.

With Regards,
Vineet Deshmukh

Dear Pons & Vineet,

Thank you for your quick response. I require a "Declaration Form" from the employee's side or any other relevant form that I can use officially.

Mathu

Dear Mathu,

As per your requirement, please find the attachment.

With Regards,
Vineet Deshmukh

But keep in mind, if anyone is already a member of the PF scheme, in that case, Rs. 6500 cannot be avoided.

Jagdish Yadav
9358147022
Mussoorie

I endorse the views of Mr. Yadav. In my view, if a person had EPF membership in their earlier employment before joining a new establishment and has not withdrawn the benefits, then the new employer is statutorily bound to continue their membership irrespective of the salary limit in the new establishment. There is no option for the employee or employer to not continue the membership in such a case.

A K Chandok
RPFC (Retd.)

Dear all,

My question is, as the minimum wage in U.P. is 4975 (basic 2600 and D.A. 2375), do we have to pay P.F. on 4975 or 2600... please confirm.

All benefits like PF, gratuity, and bonus accrue always on (Basic+DA) as DA is always a part of Basic Wages and is time-to-time announced/increased by the State Govt to maintain the minimum wages, which are affected by inflation.

Jagdish Yadav
9358147022