Denial Of EPF Account By Employee

D.K.Sinha-H.R
Dear Professionals,
Please do let me know, if any person whose basic salary is Less than Rs. 15000 per month, does not want to get EPF deducted from his Salary, means he does not want to save money through EPF. Can employer give him exemption by taking declaration from the employee in question.
Thanks,
Dhananjay.
ravi5554
Hi,
According to Para 2 Clause (f) "Excluded Employee" means
an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [Fifteen Thousand
rupees] per month.
In your case he should be member, not have the exemption.
ravi5554
Hi,
If more than 15,000 as freshly joining company that instant have the exemption, if they are earlier member of PF fund then No exemption either basic is more than or less than.
D.K.Sinha-H.R
Dear Aditya,
The question is for those whose Basic salary is less than Rs. 15000 but they don't want to get the money deducted from his salary. Can they be given the exemption.....
loginmiraclelogistics
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An Employer does not enjoy any discretionary powers to exclude any employee(s) who, otherwise covered by the Act on a selective basis or en-mass for any reason whatsoever. On the contrary the employer can only include anyone who are not covered by the Act as per their discretion. Also the employer can contribute both the employees' as well as employer's contribution if the employee not willing to contribute (as in the query) if they don't mind it.
Apex Management
dear all,
It is not a optional scheme based on declaration or undertaken given by the employee. In case a person is getting less than Rs.15000/- per month as BASIC + DA, he should be a member to the scheme.
P K Sharma
D.K.Sinha-H.R
Thanks to all of you, specially to Mr. P. K. Sharma who exactly got my point. So in nutshell, Employer is bound to create EPF Account for all those employees who are covered by the Act.
Thanks again.
Dhananjay.
ajay_s_kini
The correct position as per law is an employee can submit Form 11 and opt out of the PF scheme. The rider here is that he should not have been a member of the scheme at any time. Accordingly, a new employee starting his career can submit this form and choose not to participate in PF. For all others it compulsory by law to enroll in the PF scheme if their earnings from Basic & D.A or Spl Allown is less than 15,000.
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