Exempting Employees Earning Over 25,000 from PF: What Steps Should HR Take?

How can we exempt a class of employees who are drawing a salary of more than 25,000/-? Do we need to submit any form to the PF Department? Do we have to acknowledge employees who are in contribution till now? What is the procedure?

Thanks and Regards,
Kashinath
Sr. Executive HR

Exclusion from Provident Fund Coverage

Only those whose salary at the time of joining the establishment or when the establishment is covered exceeds Rs 15,000 may be excluded from coverage. At the same time, if anyone has been a member of the PF and the account is still active (not withdrawn), then they should also be given coverage even if the salary is more than Rs 15,000. The employer, however, can limit their contribution to 12% of Rs 15,000.

Form Submission and Employee Acknowledgment

You do not need to submit any form to PF but should collect Form 11 from employees, especially those joining the company with a salary of more than Rs 15,000. This not only confirms that they were not a member of the provident fund previously; if they were a member, they should still be covered even if their salary is more than Rs 15,000.

Acknowledging the employees who are contributing is handled by the EPF Organisation, and all employees can view their Passbook online.

Regards, Madhu.T.K

I was a member of EPF in my previous company, but I don't want EPF facility in my new company. My basic salary is more than 15000. How can I do?