Coverage Of Excluded Employee Under EPF

N.Mohan
Dear All,
An excluded/Exempted employee under EPF wants to be covered under PF now. Even the Management is ready to cover him under the Act. For last 4 years, due to his higher salary, was not covered under EPF.Can we do so ? if we cover now what will be the position of previous 4 years. Please suggest.
jeevarathnam
If the person is not the EPF member & if the wages is above ceiling limit then if both EE & ER are willing to cover then sure employee can be covered as voluntary contribution.
1) As its not mandatory coverage the both EE & ER contribution is calculated form the day of the coverage & its not mandatory to contribute on the previous months wages
2) As per the new EPF rules if any employee joining with higher wages & not an EPS member he/she is not entitled for EPS. So Both 12% of EE + 20% of ER = 24% shall be accounted for EPF only. There should not be EPS contribution
puran
Dear Jeeva
As per your advise excluded employee can be covered from the date he wish to become member.
Is pf act says anything on this ?
What happens if today one excluded employee wants, tomorrow another and day after one more ? administrative hassel during inspection ?
On monetary front, there should not be any problem, as even employer share is a part of CTC in almost all organisation these days
Regards
Puran Dangwal
jeevarathnam
Where is administrative hassle during inspection? I don't think as there is any such hassle to add excluded member to EPF. It is the benefits that employee is getting form the organisation.
N.Mohan
There will not be any administrative hassle if we have a proper records.
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