Provident Fund - Doc Download

Hi Members
I wanted to clarify one of the doubts I have on PF. I heard from some source that if all the employees of a company sign an declaration that they do not want to opt for the PF facility, the organization can opt out of registering for PF, please clarify whether it is accepted as per the law. thanks

no such provision is mentioned in PF Act.
U may find some organization that even though Leave encashment is compulsory as per factory act, they don't pay in F & F settlement.

Dear Rehbar,

My answer to you is as under:

What you heard is wrong.

EPF Act is applicable to the establishment with total 20+ head counts irrespective of salary and irrespective the head counts have opted for EPF or not.

A person who is already a member of EPF, he can not have option not to contribute towards EPF. A person who is not a member of EPF and his salary at joining is more than Rs. 6500/-, he can opt not to contribute towards EPF at the time of joining by giving declaration to this effect.

Suppose you have all persons drawing more than Rs. 6500/- at the time of joining or at the time of coverage of your establishment under EPF and they were not member of EPF before. All such persons opt not to contribute towards EPF and none of the person is so coverable under EPF in your establishment. In this circustance also you are liable to obtain EPF code number for your establishment and pay total Rs. 7/- every month towards administration charges- EPF and EDLI.

Hope your doubt is cleared.

I will appreciate if other members post only value addition to it.

Good reply Korgaonkar JI! If a sample declaration is attached, it will be highly helpful to such seekers. I am attaching a sample on behalf of you

Thanks Learned Members,
Mr. Korgaonkar, please validate my understanding : 1. The company needs to get EPF code (once 20 employees are on rolls). 2. Even though there are 20/or more employees on the payroll they can opt out of PF contribution if they salary is above Rs.6500 (of course they are not covered earlier or did not get enrolled in their previous organizations kind of fresher). 3. An employee (fresher or earlier enrolled employee) drawing less than Rs.6500, will be compulsorily be covered in PF.
Please provide feedback.

dear rehbar
as per p.f. act the act is applicable from the day on whcih 20 person found working in ur premises or roll. the other things start later that if all ar getting above 6500 then u need to depsoit just 7 rs.(5 in a/c. 2 and 2 in 22) third if new employee earned below then 6500 u have to deduct and deposit his contribution along with the employer share as per law
thanks

Dear Ramchandran ji,
I have made certain chages in your draft. Presently not a member of EPF is an essential criteria for becoming 'excluded employee' with in the meaning under the Act. Revised draft is attached.

Dear Experts,
Can u please tell me what is salary as per PF act. Is it BASIC + DA IS LESS THAN 6500 OR ONLY BASIC IS LESS 6500....?
RGDS
MAHAN

I would suggest that you may take form11 from the employees who join your company at a salary (PF qualifying salary which shall include basic and DA only) of more than 6500 so as to make them excluded. The form 11 is attached for your reference.
Madhu.T.K