Exemption From Pf Contribution

Dear 9871103011 & abbasiti,
Good sharing.
I have another doubt, a related one, with the salary break up & PF.
can full salary be shown as basic?.
pls comment

Dear Member,
In reference to your query, I wish to clarify that you are allowed to split the salary of the employees but ensure that PF contribution is granted on prevailing minimum wages declared by the state in which the establishment is situated. The EPFO has also issued an inter-department clarification on May 23, 2011 indicating that splitting of minimum wages for the purposes of PF contributions is not permissible.
In other words, salary for PF calculation should not be less than “minimum wages.”
BS Kalsi
Member since Aug 2011

Hi Mr. Josheph,
Thanks for your sharing.
The clarification are as follows for your queries.
1. Whether you are deducting the PF for existing employees and paying the same to PF "ON ACCOUNT" basis;
No. this Concern is new one. pf amount not deducted from existing employees.
2. Whether your employees are employed fresh or they were members earlier elsewhere?
No, they are fresh employees.
2. Whether yours is a new establishment? or since how many years you are operation?
Commencement of business : 01.04.2012
3. When did you crossed the 20 employees limit to be applicable for PF.[/QUOTE]
01.06.2013

Hi Mr.Kalsi,
I conveyed about the salary drawn by the employees are more than 15000/- not about the pf limit or esi limit.

You can start deducting the PF of your employees from 01.06.2013 onwards since you have crossed the threshold of the minimum employees and are to be compulsorily covered under PF.
Apply for obtaining the code number to your local jurisdictional PF Office and till then you start deducting and pay on account till you get the code number.
All the best.

it is not clear whether all the 20 employees are new members or the existing PF members, if all the employees are new contributors we can submit nil returns, if their salary more than 6500/ pm (basic + DA) kindly check the allowences and salary structure
purushothama

hello
the deptt. can not force to deduct the contri. on the salary excess 6500 in a fresh case and also not refuse to issue a p.f.code no. on the strength of 20 or more, as per law u will deposit rs. 5 and 2 in respective accounts only. secondary if any employee was the member in previous firm and not withdraw the contr. then u have to bound to deduct the p.f up to salry of rs. 6500.
hope it will clear the position
thanks

if EPF is not applicable in X Company and someone comes into company whose PF was deducting in last firm and if is asking to cut the pf then what to do ? please not that X company don't have the license of PF..
please answer it to me, I have confusion in this.

Dear Kkadvocate,
If I am the department, I will force to deduct the contribution even salary exceeds Rs. 6500/- to fresh employee.
You are liable not deduct the PF in respect of excluded employees within the meaning under Para 2(f) of scheme. The onus lies on you to convince me that the employees are excluded employees.
If I am an employee of you, I am fresh and I opt for PF deduction even my salary is above Rs. 6500/-,in this case you have no option but cover me under PF.
If I am a member of PF in earlier employment, you have no choice but to deduct my PF even I give you in writing that I do not want PF.
I once again repeat, your decision to cover me in PF or not, you have to justify. Onus is yours.
The answer to queriest of this thread may be this, I feel. How he made his representation, that we do not know. If his representation is right and eventhough his case is rejected, he has a right to go for appeal.

Dear friends
What about those cases where the govt has not fixed the minimum wages?.There are certain occupations and designations for which MW has not been fixed and the Government Order do not have a rider that if in the case of a scheduled employment or a job for which MW has not been fixed the minimum wages fixed for similar job shall be paid as MW.
Can lower wages be shown for EPF in such cases ?
Varghese Mathew