coverage of pf for newly employee having basic plus da exceeding 15000

amtgup
Dear Seniors,
A newly employee who is not previously member of PF have joined our company however her basic plus DA is exceeding 15000. the management want to exclude her from PF coverage but she is insisting to be the member of PF.
pls clarify :- can i reject her praposal to be the member of PF against her will. legally can i do so?
Thanks
SHREYA
Shrikant_pra
If she was NEVER a member & now her B+DA salary is more than Rs. 15000 then you are not obliged to cover her under the PF Act. Have you got PF Form 11 (revised) filled from her? You must get the form filled in from all employees & also new joinees, irrespective of salary they draw.
tholanakishore
Management need not cover under EPF as her Basic+VDA (EPF Wages) are more than 15k. However, if she is very keen to avail such benefits, she may request to the management by deducting the both contributions from end to avail the facility (i.e. will be calculated on a max of 15k only)
15000*12% = 1800
(18000 EE + 1800 ER = 3600)
Total of 3600 Rs. will be deducted from her salary.
1.15% admin charges has to be bared by the management, which is nominal, any management can say yes.
This would be the right treatment.
Vidyadhar Bhat
Dear Mr. Kishor,
Please give your opinion based on the PF act.
It is not allowed to deduct Employer's contribution from Member even member agree.
It not what is right treatment, Its is what is legal.
If member is already EPF member, as per form 11 declaration, employer has no option not to deduct PF. He must deduct.
IF member above 15 K wages and his first employment, employer can treat his as excluded member and not to deduct PF. If employer wishes to deduct PF, no EPS will be diverted. All contribution will go to ER share.
Thanks,
Vidyadhar Bhat
tholanakishore
Agreed with your explanation Mr. Vidyadhar Bharat. That is what even i have mentioned.
With a personal interest of an employee may request, generally we shouldn't deduct both from one end.
Thanks for your prompt reply.
amtgup
Dear All.
Many Thanks For yours valuable inputs with regard to my query pertain to coverage in PF if employee basic plus DA is exceed 15K.
However some of the Labour Laws Advocate as well as HR professionals are in the view that opportunity to avail PF benefits must be offer to all employees irrespective of their drawing. Hence it lead to confussion whether to provide her the opportunity to avail PF benefits or Not.
Therefore to stand legally pls provide the relevant section/circular which state that if employees basic plus DA is exceed 15000 also is not previously member of PF shall be exclude from PF coverage the management as per their discretion may cover such employees in PF or can even exclude.
Thanks
SHREYA
saswatabanerjee
The posts on this matter are incorrect.
The PF basically applies to everyone in an organisation with more than 19 employees.
The law allows employees to claim an exemption based on certain criteria (no existing PF account and basic + da exceeding 15,000). The option is with the employee to claim the exemption, not with the management to force the exemption
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