When PF Amount Is More Than 15000 And Employee Doesn't Wish To Contribute In PF?

yashavant karale
Hello everyone,
please any one tell me what is a procedure when PF amount is more than 15000 and employee don't wish to contribute in PF. In this situation what action should be take.
Thanks & Regards,
Yash karale
jeevarathnam
1) Employees covered under EPF act

• Any employee who is earning the wages of Rs. 15000/- or less (Current Ceiling limit).

• Any employee who is already covered under EPF Act and due to Increment/Promotion if the wages is increased above than the ceiling limit (Rs. 15000/-) then the employee shall not be exempted. In this case both the contributions is restricted to Rs. 15000/- only.

• Any employee already had EPF account in his/her previous company and due to various reasons if the employee joins the new company and if the new company also has the EPF then that employee is covered under EPF act.

2) Employees exempted under EPF act

• Any employee who joins the company with the higher ceiling limit (Above 15000/-) and if at all that employee is not EPF member previous companies then the particular employee may be exempted from the EPF Act. If at all employee is covered under EPF then both EE & ER contribution (12% of EE share + 12% of ER share = 24%) shall be paid as EPF only and EPS is not applicable to them.
9871103011
Dear Yashavant,
Sh Jeevarathnam has rightly advised you that if you have been covered under EPF scheme with your earliar employer, you have no choice but you will be automatically covered under EPF Act with your new employe.
In the process if the wages are increased above the ceiling limit of Rs. 15000/- then the employee and employer contributions will be restricted to monthly wages of Rs. 15000/- only.
If you have withdrawn your PF accumulations while not in any employment and join new company with salary above Rs 15000/- then you will be exempt from coverage under EPF Act.
BS Kalsi,
Member since August, 2011
K K Bhatia
good Morning
With a basic salary of 100,000 plus allowances EPF contribution by the employer shall be 12% i,e Rs12000 & the employee contribution Rs 12000/.My point is that is there any limit on the employer for max, epf contribution on their part or the employer is bound to pay 12 % towards epf contribution on basic plus DA even if the basic pay goes much higher say above 2 lacs per month.
Please enlighten on this & any limits under EPF rules if any on the max epf amount contribution by employer.
thanks for your understanding.
Kind Regards
CompliCheck - Compliance Tool
Dear Yash,
1) If the employee was already covered under PF and in the new organization joins on a salary higher than the PF ceiling then he can 'technically' be excluded but it will require employee go give a 'false declaration' under Form 11. So the short answer is Yes.
2) If the employee was not covered under PF in his previous employment and joins your organization on a salary above 15,000 then he can give a declaration under Form 11 and he can be exempted. Hence the answer is Yes. In this case however there is no false declaration by the employee
Hope this helps
Sarfraz00015
Hello Seniors, Anyone able to correct below table?
G W EPF W EPS W EDLI W EPF CONTRI EPS CONTRI EPF EPS DIFF REMITTED NCP REFUND
30000 30000 30000 30000 3600 2499 1101 30 0
9816 5800 5800 5800 696 483 213 30 0
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