Should Our Company Make EPF Mandatory or Let Employees Choose Their Investment?

Dear senior,

Our company follows the CTC method. Employees getting a basic salary of 15,000+ are given the option of joining EPF. Many employees wish to invest elsewhere and don't join EPF. In any case, the company pays the same amount.

Should the company continue with the same practice or make EPF mandatory?

What is in the best interest of employers and employees?

Thank you.

Importance of Form 11New (EPF)

Form 11New (EPF) plays a very important role in deciding whether the new entrant has to be taken into the PF or not. This form is to be taken from every new entrant, and on the basis of this form, the company has to give correct treatment regarding the enrollment of PF. If the new entrant is a member of PF in their earlier employment, the company has no option but to enroll them under PF even if their basic salary is more than 15K. This subject has been discussed here many times, and this is a basic thing that every HR professional must know.

Regards

Thank you, Mr. Kargaonkar.

If a new employee (drawing a basic salary above 15,000) is not a member of EPF and does not want to join EPF, should the employer forcefully enroll him? What is in the best interest of both? As a new rule is coming that the employee cannot withdraw 25% until the age of 58.

Dear Ajay Agarwal,

If the salary of a new employee is above Rs. 15,000, the employer cannot enroll him/her forcefully. If both the employee and employer wish to enroll, then only PF membership is possible.

Abbas.P.S