EPF enrollment for new Joinee - Document for New joinee

How to tell new joinees about EPF

As part of joining formalities you must issue Form 2 for nomination in duplicate to the new joinee at which time you can explain about the EPF scheme in brief.

Explain the employee contribution %age (12%) as part of recovery from his Basic+DA and contribution of the employer part (12%) on similar basis which is again broken up into EPF (1.67%) + EPS (8.33%).

You may not go into the detail as it might confuse the employee at the beginning. You may have simple ppt prepared to explain salient features of the social security scheme as part of the orientation.

You must tell to the employees benefits about the PF deduction and also tell in details the contribution % both employer and employee and admin charges %.

You can also tell the withdraw rules.

handover EPF form 11 to employee and ask to fill it and submit with annexed documents , it contains all requisite details

Explain the employee contribution %age (12%) as part of recovery from his Basic+DA and contribution of the employer part (12%) on similar basis which is again broken up into EPF (3.67%) + EPS (8.33%).

Dear Member, if you are a covered establishment as per Employees Provident Fund & Miscellaneous Provisions Act, 1952.
As it applies to;

1. Every establishments / factory engaged in activities specified in Schedule I and in which twenty and more persons are employed.

2. An establishment to which this act applies shall continue to governed by this act notwithstanding that the number of persons employed therein at any time falls below twenty.
Pleas ensure compliance for Covered employees drawing salary up to Rs.15000 per month.

*as per Supreme Court Judgement dated 28th February 2019 in Civil Appeal No 6221 of 2011, special allowances paid to employees will attract PF contribution up to statutory basic limit of Rs.15000/- per month in other words whose basic salary plus dearness allowance is more than Rs.15000/- per month will not be impacted by this judgement.

As per the judgement, subject to maximum limit of Rs.15000/-, PF will be attracted on all components of salaries except the following,– HRA, Overtime Annual Statutory Bonus, Leave Encashment, Production or incentive bonus when variable linked with productivity, Service charges collected from customers and paid to employees, Notice pay in lieu of termination, One month wage u/s 32(2)(b) of Industrial Dispute Act, Commission to be given on sales not to all employees

Exempt employee means employee drawing BASIC salary (Basic + Dearness Allowance) more than Rs.15,000/- per month.
But my advice on you would be that being covered establishment, you should cover all your employees even those drawing more than Rs 15000 ( treating them as drawing Rs 15000).
Today EPFO services and settlements have improved so employees should be pursued to become members of EPF scheme.
For exempt employees you may take a call with management .