Dear All, After the new SC ruling w.r.t EPF some employees in my organisation drawing a BASIC SALARY of More than 21000 (keeping in mind the stat limit of RS 15000) have requested to withdraw from the EPF scheme completely while continuing their service with the company.
I understand there is no fixed format which needs to be presented to the RPFO for initiating such OPT out by existing employees. Therefore I request the experts to shed some light on this topic as to how the same has to be done.
Certain common things about these employees;
1) All are drawing salaries way above the statutory limit of EPFO.
2) All of them are based in New Delhi area.
3) All have completed an average 2 years with the company.
4) All of them at the time of joining my company had opted for EPF wherein the deductions till Jan 2019 were happening on 12% of Basic salary .
5) All have been issued a UAN.
Besides understanding the process of opt out of EPF while in service I would also request the following information.
a) In the event they leave my company for another company and in the next company if they want to have EPF deducted then will they be eligible to do so.
b) All of these employees are senior persons with EPF contributions for the last 15-20 years in such case some have transferred their EPF from company to company.Now when they opt out can they withdraw the PF contribution.
Also since they have completed more than 10 years EPF contribution will they be eligible for pension.
c)Lastly what will happen to their UAN will they have to surrender it or leave it as it is.
d) What is the impact on my company if these existing employees request to stop contribution completely. Will the company have to pay any token amount whatsoever.
Please advice as they want to stop EPF contribution at the earliest.
I understand there is no fixed format which needs to be presented to the RPFO for initiating such OPT out by existing employees. Therefore I request the experts to shed some light on this topic as to how the same has to be done.
Certain common things about these employees;
1) All are drawing salaries way above the statutory limit of EPFO.
2) All of them are based in New Delhi area.
3) All have completed an average 2 years with the company.
4) All of them at the time of joining my company had opted for EPF wherein the deductions till Jan 2019 were happening on 12% of Basic salary .
5) All have been issued a UAN.
Besides understanding the process of opt out of EPF while in service I would also request the following information.
a) In the event they leave my company for another company and in the next company if they want to have EPF deducted then will they be eligible to do so.
b) All of these employees are senior persons with EPF contributions for the last 15-20 years in such case some have transferred their EPF from company to company.Now when they opt out can they withdraw the PF contribution.
Also since they have completed more than 10 years EPF contribution will they be eligible for pension.
c)Lastly what will happen to their UAN will they have to surrender it or leave it as it is.
d) What is the impact on my company if these existing employees request to stop contribution completely. Will the company have to pay any token amount whatsoever.
Please advice as they want to stop EPF contribution at the earliest.