Can Employees Transfer and Increase PF Contributions with Our New Registration?

Dear CiteHR members,

Kindly clear one doubt. We are about to get a new PF number registered for our organization. Now the query is - is it possible for an employee seeking a transfer of PF number to ours, and if they are having their PF amount deducted, is it possible to contribute more amount to the PF organization on behalf of an employee regardless of the new organization registration?

Please clear the doubt.

Regards,
Sashmita

Hi Octavious,

Thank you for the response. My doubt remains the same. Assuming that we have registered ourselves in Feb 08 and would be depositing PF on the employee's behalf, wherein the maximum deduction is 12%, if we deduct more than that, do we need to show it in voluntary contribution? And if yes, will it be the same throughout or can it be voluntarily withdrawn?

Secondly, for those who want to transfer their PF number, is it possible to show a gap of 5 months in the 3-A form? Is it acceptable to the PF organization?

Sashmita

Hello,

For such in-depth details, you will have to talk to a PF consultant, as these are not legal but more of operational queries. A person with operational expertise in PF can help you. You may find lots of PF consultants on this site; please do appropriate research.

Thank you,
Octavius

Dear Members,

I am still looking for a response to clarify my doubts.

Regards,
Sashmita

Hi Sasmitha,

Let me tell you, you have to deduct only up to 12% of the employee's contribution, no more than that. This is clear. 12% of the employer and 12% of the employee.

Regards,
Rajeev Dixit
rajeevdixit1@rediffmail.com

Your first query is as follows:

Thanks for the response, my doubt remains the same. Assuming that we have got ourselves registered in Feb 08 and would be depositing PF on the employee's behalf, wherein the maximum deduction is 12%, if we deduct more than that, do we need to show it in voluntary contribution, and if yes, is it going to be the same throughout or can be voluntarily withdrawn?

Clarifications:

1. The date of coverage is the date from which you need to deduct. If the date of coverage is decided as Feb 2008 and you get registered, then a deduction at 12% needs to be made.

2. You talk about the employee's contribution only. From this date, the employer needs to make his contribution from this date.

3. Why do you deduct more? Is it on his willingness, and are you doing it yourself? If you are doing it yourself, then it is illegal.

4. If the employee wants to contribute more, he can. He has to give a letter requesting you to deduct a certain percentage every month. This is called Voluntary contribution. The total contribution by an employee to the fund cannot exceed 20%. When you deduct 12%, then the voluntary contribution can be a maximum of 8%.

5. An employee can contribute less as well.

6. I am not sure of the latest position, Employees can contribute a fixed amount also every month provided the amount does not exceed 8 or 10%.

7. If I am correct, only once in a year, an employee can give a request and he cannot stop it in between. Unless he gives a letter stopping it, deduction will continue.

8. Check on the number of times with the PF Office.

9. He cannot withdraw this. It gets added as an employee's contribution and will be taken for calculation for loan purposes.

10. The amount so paid cannot be withdrawn separately.

11. Request can be voluntarily withdrawn.

I hope I have answered to some extent the first query.

The second reads as follows:

Secondly, those who want to get their PF no. transferred, is it possible to show a gap of 5 months in the 3-A form, is it acceptable to the PF organization.

You can show a gap. Reasons like not employed or employed in an uncovered organization need to be told. Otherwise, no issues in showing the gap.

Siva

Dear Siva,

Thank you so much for clarifying the most awaited doubt. I would also like to express my gratitude for updating the information about the voluntary contribution by an employee, which is of great help to me and, I am sure, to citehr members.

Thanks & Regards,
Sashmita

Dear Sashmita,

You are welcome. However, I have not fully answered the question regarding the number of times the request can be given, as this is an administrative issue. I have not updated myself on these areas. Please check with the PF office.

Siva