When employee does not want to PF deduction from their salary then what we should do

kavi.malkani
Hi Team,
I m working with a BPO company in Delhi location as a HR Executive from last 3 years and i have some confusion about when employee does not want to opt of PF deduction from their salary then what we should do? which form we can used this time ?? and need to sign any declaration form from the employee ..
saiconsult
If an employee is covered by PF Act,he can not opt out of PF.It is a statutory obligation but not contractual one.
b.saikumar
HR & Labour Law Advisor
Navi Mumbai
rocky12
Hi,
Employee has Exemption but some conditions will apply.
1. tell me the Employee Basic, if more than 15000 then its optional.
2. In previous company he had availed this benefit, If yes then he should take the PF benefit he can't be exempted.
Regards
Dinesh Kumar
vibhakar
Hello Kavi;
Coverage under EPF Act is not by choice, it is mandatory. There are only two exceptions, firstly if the salary is beyond the limit prescribed under the Act, and secondly if the employer is exempted since employer has his own PF scheme more beneficial to employees. In all other cases employee has to be covered under the Act.
Vibhakar Ramtirthkar, [Login to view] , 9371001906
korgaonkar k a
Dear Vibhakar Ramtirthkar ji,
According to you, if salary of an employee is beyond the limit prescribed under the Act, he can be exempted from EPF.
I have a question to you. Suppose my salary beyond such limit prescribed but I am a member of EPF. Still you will exempt me from EPF?
vibhakar
Dear Korgaonkar;
If you are already member of EPF, question is are you continuing with same employer? If yes then the employer might continue you to remain covered under the EPF but to the extent of maximum salary. You may contribute more, but employer will not contribute anything above the limit of wage.
If you leave that job and join new employer where your salary is more than the limit under the Act, you will be exempt. In such cases employer has different superannuation scheme, because such employees are top layer employees and few in number.
Vibhakar.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute