Voluntary EPF

jd2001
Hi,
I would appreciate if someone could advise if a company having employees less than 20 and if the employer and employees are willing to start EPF in the organisation, can they do the same.
Secondly, for those employees with basic salary scale above 10k / month, can the employer limit the contribution to 10k only?
regards
jd
dileep84
Dear JD,
With reference to your query on the above subject, you can register your organisation as voluntarily and also cover your employees under EPF Act-1952 Rules if the strength is less than 20.
For that you need to do the below:-
1. First of all your company has to be registered under section 1(4) of the epf act.
2. You need to apply by filling Form - 1 and other documents like number of employees details (including the their salary break ups, date of joining, registration certificate of the company etc with a consent from employer as well with employees and submit the same to RPFO
3. Once you got the Establishment code you start the Monthly contribution process.
Thanks
R Dileep Kumar
ramnarayanhr
Respected JD
good morning
the first Question was answered in the above post that
Voluntarily you can register in to EPF even though you have less than 20 employees (once you registered, in future even though you have only 1 employee you have to pay EPF you can't drop it in the middle till the company closer)
second query
as per my Experience the limit of basic salary as per EPF was Rs 6500/- (we are filing monthly returns with the 6500/- limit) its not 10,000(10k)
hear also the company can go with the statutory limit or else if company & employee want to contribute more they can fix the limit as per the company's different basic amounts which may crosses 6500 to unlimited basic salary amount.
jd2001
Dear Dileep,
Thanks for advising the detailed procedure to be followed. Can you also throw some light on what is unorganised sector PF contribution companies. do they have some different taxation system for PF contribution?
Dear Ramnaryan,
Thank you for correcting me the statutory limit. In case you have some idea about PF taxation system would appreciate your reply on the same.
regards
jd
jd2001
Hi,
I would also like to know that, can the contributions to EPF vary from month to month, for e.g. if an employee in the beginning of the year is capable of contributing 20% of his basic + DA and at the end of the year he is only able to contribute 12%, can that be possible?
regards
jd
ramnarayanhr
Mr JD
we cant say that its not possible, generally the companies & mostly the PF officers won't invite that much work
in the act its not written any where. with a letter you can do the above. again its the nature of the PF person(Asst/ commissioner) who designated to your company code.
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