"Excluded Employees" For PF

Dear Seniors,
I have some query regarding EPF.
1. I want to know about the "Excluded Employees" in PF.
2. Is there any Notification or Circular from EPFO for non-deduction of PF Contribution from employees whose salary is above 15000/- p.m.
3. What documents has to be provided to PF inspector for the employees whose PF is not deducted, as there salary is above 15000/- & 18000/-.
Pls. suggest & guide.
Regards,
Yugal Panchal
7405375693

Hello Yugal,

There was several discussions happened in this forum on the excluded employees from EPF contributions.

In the year 2014, the coverage is being increased from the basic salary of 6500 to 15000/-.

If an employee wants to exclude from the epf deductions, he need to fill the form 11 and submit to employer, in that form has a column, which says that whether that employee was a member of EPF earlier or not. They need to tick or untick it.

Apart from the above, there was no clear case laws available to substantiate your point infront of the epf officials. You can show the form 11 of all employees whoever basic is more than 15k. As the act itself says that employees whose basic is less than 15k are required to be covered under this act.

There are some case laws i found which can be shown to them if required.

1. Prakash Consultancy Services : An employer is liable to pay EPF contributions along with damages and interest if it fails to prove that its employees are ‘excluded ones' -- This case law says that employer should provide the appointment orders, payslips / payroll and other related documents to epf officials to prove that their basic pay is more than 15k

2. https://indiankanoon.org/doc/173456055/?type=print ---- here it says that basic pay should be more than 15k. Not whole salary. So you have to makesure that basic + DA should be more than 15k to exclude them from epf contributions.

I will try to post some more case laws if i could find in future.

I hope you realise that only someone who joined your organisation at a salary (basic and DA) above ₹15000 is exempt. Someone who joined at a lower salary and then got increment is not exempt.
Further the employee concerned should not have any PF account existing at the time of joining the company

If the member while joining the organisation gives declaration in form 11, that he was not member of EPF previously or had withdrawn, and if his present pf wages are above 15K, He will be treated as "excluded Employee". and co PF will be deducted.
Thanks,
Vidyadhar Bhat

Hi
If such excluded employee wants to become a member of pf say after two-three years of joining, can employer allow him from that date. ? What does PF act say on this ?
regards
Puran Dangwal

Yes, an exempted employee can joiN.
But once he joins, both employer and employee will be liable to pay PF and they can't stop it at a later date