Is It Necessary To Give New Employee PF Benefit?

monika paliwal
Hi, my company is registered in EPF. But when we hire new employee whose salary is above 15000/- . we doesn't count him in PF deduction as per rule. My question is "is it necessary to give new employee PF benefit, if we offer him above 15000/- and he is already EPF member. (was getting PF benefit from previous employer)?
ara we bound to give him PF benefit?
Glidor
an employer can NOT bar any employee to join EPF, however the employer can restrict the employers contributions upto the ceiling of 15000 ( employer contribution 1800)
employer has always to offer and ask the employee to be member of EPFO,
how ever if the employee has never been member of empfo in his past service, and his present salary is above the ceiling limit of 15000/- then he has to inform the employer in writing that he or she has never been an member of EPFO and does not want to participate.
from dec 2016 returns, EPFO has started to collect data of such employees during ECR submission , and in case of any non compliance, employer woud stand fully liable for both shares of contributions, plus interest and panel damages
monika paliwal
@ U S Sharma
so is it necessary for us to give PF benefit to employee who is earning above 15000/- (if he was getting PF benefit from his previous employer)
Glidor
employer has to offer EPF benefit to all employees, whether they weere previously EPF member or not
if the member had been epf contributory anytime in past than he must have to join
employer has no right to restrict any employee to join EPF, he can restrict his own contribution only.
v shakya
Hi,
Irrespective of presviously EPF member if the Employee is Active Member of EPF at the time of
joining New org. Then New employer shall be bound to cover him/her within the purview of EPF. However if the employee had been previously member of EPF but at
Time of joining New org. If he/she is not Active Member of EPF in this
scenario Employer shall not be bound to cover him under EPF if PF chargable salary exceed ceiling Limit i.e. 15K. For the employee who is Not active Member of EPF also Drawing basic plus DA exceed the 15K you can convience them not to be the member of EPF if they agree just obtained the form 11 duly signed by concerns employees Not agreeing for the same and keep this forms for the futher reference?
Thanks & Regards
V SHAKYA
HR & Labour Laws Advisor
vashistha.krishan
Dear All,
In PF what is 15k ceiling, is it basic,gross or inhand salary.
Vidyadhar Bhat
Dear All,
Que.:Hi, my company is registered in EPF. But when we hire new employee whose salary is above 15000/- . we doesn't count him in PF deduction as per rule. My question is "is it necessary to give new employee PF benefit, if we offer him above 15000/- and he is already EPF member. (was getting PF benefit from previous employer)?
ara we bound to give him PF benefit?
Ans.: If member is having previous employer membership, you have to continue him as EPF member and restrict his PF wages to Rs. 15 K.
If member has no PF membership or he has withdrawn his PF, and he joins in any organisation where PF is applicable, at the time of joining, his salary is above Rs. 15 K, he can be treated as excluded employee.
Even though you want to give him PF benefit, he will be memner of EPF only and no EPS will be deducted.
Thanks,
Vidyadhar Bhat
Vidyadhar Bhat
Pl note that Salary means PF wages above Rs 15 K.
Thanks,
Vidyadhar Bhat
Supriyamd
Hi,
1.If a member is newly joined and his epf wages crosses 15000/- then they are not eligible for EPS. EPF has to be paid.
2. If a member is already a epf member in previous org., if not withdrawn or claimed for settlement, we should first link UAN and check his previous company limit, if that does not exceed 15000/- then he is eligible for EPF and EPS.
3.If a member is already a epf member in previous org., if not withdrawn or claimed for settlement, we should first link UAN and check his previous company limit, if that exceed 15000/- then he is not eligible for EPF and EPS.
This is what I am aware. Please correct me if I am wrong.
Vidyadhar Bhat
Dear All,
The excluded employee is not necessary to join EPF Scheme.
Excluded employee means,
1.Member has withdrawn the PF
2. The employee whose PF wages exceeds 15 K at the time of joining.
If the employee already member of EPF, you have to continue his membership by adding him in your establishment in PF. It is not optional.
Thanks,
Vidyadhar Bhat
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