PF Contribution - Pf Contributions [Thread 462205]

Dear All,
I have a doubt in PF contribution.
One of our employee worked for a govt. organisation and she got VRS. When she worked there she opted for the PF.
She joined in our Company in 2009 and she requested not to deduct PF. We did the process of signing the application.
I would like to know whether is there any policy that she can opted out from the PF contribution or is she suppose to pay the PF?
I am expecting your valuable feedback's on this.
Thanks& Regards,
Priya

It all depends on the company's policy. If you have a written company's policy, then it would help you. You can also ask the finance or your CA about the policy if there is nothing written.
regards

Is Company policy is enough!
But according to the PF policy we should deduct for all right. Sorry Ms. Anu could you give me more clarity on this.
Thanks in Advance.
Regards,
Priya

If she has withdrawn her PF contributions and now she is above the limit of 6500, then she can opt out of PF. But is she has not then you have to continue with PF contributions.

Dear Marysaminthan,
First let you check whether she compleated 60years if not she is elegible for PF,
If she Opted for Non contribution check whether you taken approvel from PF authorites for exemption of PF contribution who draws more than 6500 basic salary if not you have to contribute the PF accordingly.

There is a provision in PF Act, wherein for an employee who has already received the terminal benefits of PF and gratuity and superannuated, PF deduction can be made at the option of the employee.
Refer Section 69(1) and read with definition 2(f)

Dear Friends,
I do agree with Mr. Sekhar. My CMD is around 81 and even now we have been contributing to his PF Account. It is upto the discretion of the management and its policy.
As some of my friends said, once an employee attained the superannuation age of 58/60, the Management can discontinue contributing to PF even though the employee continued in service.
As another friend suggested, eventhough the salary is more than 6500 the contibution can be limited to Rs. 6500/- only.
Hope this is clear.
G.K.Manjunath

Hi
Unless the member of the EPF has withdrawn nor has crossed the age of retirement, at least 58 years of age, he has to be continued as a member but subject to ceiling of employer contribution at the pay of Rs.6500.
However, beyond the above provision of Act, everything depends on the company policy but subject to better terms to employee.
Rgds.

Mere withdrawal of earlier PF will not be enough. He /she should hvae been withdrawn the amount;
1.on retirement after attaining 55 yrs.
2.on migration from India
Withdrawal on any other reason is not entitle for exemption even if salary is above Rs6500/pm
Varghese Mathew

In my opinion, she can be treated as an excluded employee at this stage in following conditions-:
1 If she is qmore than 58 year age,
2. If she has withdrawn her PF benefits from her earlier employment,
3. If her Basic wage is more than Rs. 6500/ PM in the new employment,
In case ,she was a member of EPF and has not withdrawn the contributions, now she can,t be excluded at least upto the age of 58 years.
AK Chandok
RPFC (Retd.)
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