I would like to know whether an employee who joins with a base salary of more than Rs. 6500/- per month and wishes to opt out from the P.F., not wanting to be a member of P.F., can do so. What formalities need to be done? Are there any forms available that need to be submitted to opt out? If so, what are the formalities that need to be completed?
Please guide me.
Regards,
Vipul Rana
From India, Thana
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2Please guide me.
Regards,
Vipul Rana
From India, Thana
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Dear Both, Simply use Form No.11(exemption form), can be downloaded from PF site. Regards,
From India, Delhi
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From India, Delhi
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hi dear, As per our teleponic disscassion .....use Form No.11(exemption form), can be downloaded from PF site & one more thing do the needful ..as per company law’s .........
From India, Gurgaon
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From India, Gurgaon
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A ceiling wage of ₹6500/- has been decided. If any employee has a basic salary of more than ₹6500/-, then it is not mandatory to deduct their PF. There is Form No. 11 as decided by the EPF Act of 1952 for those who do not want to deduct their PF. It is called VPF (Voluntary Provident Fund).
Regards,
H Garg
Human Resource
Bawal, Japanese MNC
From India, Mumbai
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Regards,
H Garg
Human Resource
Bawal, Japanese MNC
From India, Mumbai
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But most companies deduct as per their company norms. They hardly give the opportunity for the employee to decide and settle on his/her choice.VPF is good but rarely it is implemented.
From India, Hyderabad
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From India, Hyderabad
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Dear Friends, thank you for your advice. After reviewing Form-11, I found that this form is specifically for employees declaring their employment in the establishment. I did not find this form relevant for the exemption. I have enclosed the form for your review.
Details on P.F. Deduction
Going into details, I would like to know if it is compulsory for an individual to have P.F. deducted on Rs. 6500 and above, or if they can choose to be a part of it or not.
Regards,
Vipul
From India, Thana
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Details on P.F. Deduction
Going into details, I would like to know if it is compulsory for an individual to have P.F. deducted on Rs. 6500 and above, or if they can choose to be a part of it or not.
Regards,
Vipul
From India, Thana
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If you are not a member of PF in your earlier company, you can opt for an exemption for PF contribution by filling out Form 11 with your present employer. This form must be submitted by your employer to the PF commissioner.
Regards,
C.S. Deshmukh
HR Executive
From India, Mumbai
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Regards,
C.S. Deshmukh
HR Executive
From India, Mumbai
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Dear All, I want to know about some points related to PF.
PF Pension Commutation at Age 34
1. An employee who has completed 10 years as a member of PF and leaves the job wants to commute his pension immediately; his age is 34 years. Is it possible? Or is it possible only after the age of 60 years?
Withdrawal from Pension Fund
2. How much amount can he withdraw from the pension fund 8.33%?
Pension Calculation Formula
3. What is the formula for calculating the pension?
Please reply soon or by mail [Email Removed For Privacy Reasons].
From India, Delhi
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PF Pension Commutation at Age 34
1. An employee who has completed 10 years as a member of PF and leaves the job wants to commute his pension immediately; his age is 34 years. Is it possible? Or is it possible only after the age of 60 years?
Withdrawal from Pension Fund
2. How much amount can he withdraw from the pension fund 8.33%?
Pension Calculation Formula
3. What is the formula for calculating the pension?
Please reply soon or by mail [Email Removed For Privacy Reasons].
From India, Delhi
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Dear Rajiv, Since employee has served 10 years, he is entitled to pension but not earlier than 50years. Now only PF can be withdrawn not pension share. Regards,
From India, Delhi
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From India, Delhi
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Hi folks,
I work for the Provident Fund organization. You may address me as 'PFwala'. I just chanced upon your queries. If you still have some queries related to EPF/EPS, please post them. I'll try to provide information or clarification as soon as possible.
Best,
PFwala
From India, Ahmadabad
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I work for the Provident Fund organization. You may address me as 'PFwala'. I just chanced upon your queries. If you still have some queries related to EPF/EPS, please post them. I'll try to provide information or clarification as soon as possible.
Best,
PFwala
From India, Ahmadabad
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Dear All, Kindly tell the meaning of Voluntary Provident fund, and exactly what its calculation. Regards, Kamesh. OB Executive.
From India, Visakhapatnam
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From India, Visakhapatnam
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Dear Shri Vipul Rana & Shri KK,
If you opt out of PF, you would be losing the equal management contribution to your account as well as the pension benefits attached to the PF. So, I suggest you please reconsider your decision. You would be saving somewhere else for income tax purposes. Then why not in PF?
Sincerely,
Shyam Agrawal
From India, Pune
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If you opt out of PF, you would be losing the equal management contribution to your account as well as the pension benefits attached to the PF. So, I suggest you please reconsider your decision. You would be saving somewhere else for income tax purposes. Then why not in PF?
Sincerely,
Shyam Agrawal
From India, Pune
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Dear Sir, I am an accountant in a private limited company, and we are facing some confusion regarding the PF registration process. In our company, some employees are reluctant to register for the PF membership, which is causing difficulty in registering other employees as well. What would be the next step in this situation? Can we seek exemption for employees who do not wish to avail of the PF facility?
I am awaiting your response.
Thanks and regards,
Uday
From India, Bangalore
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I am awaiting your response.
Thanks and regards,
Uday
From India, Bangalore
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There are no forms to be filled to get exemption for employees. If your salary (Basic+DA) is over 6500/- per month, you can as well request your employer to exempt you from PF. Regards, Venkateswaran
From India, Madras
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From India, Madras
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Understanding PF Membership and Form 11 Requirements
As per the PF laws, the employer is required to get Form 11 duly filled in by the new employee. From the details of the said form, the employer comes to know whether the new employee is a member of PF or not. If the new employee is not a member of PF on the date of his joining and if he is drawing more than Rs. 6,500 as basic and DA, then it is not necessary to deduct PF.
However, if the employee is already a member (i.e., if he has not withdrawn his PF before joining the new employment), then it is compulsory on the part of the employer to continue with his membership by deducting PF on Rs. 6,500.
From India, Mumbai
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As per the PF laws, the employer is required to get Form 11 duly filled in by the new employee. From the details of the said form, the employer comes to know whether the new employee is a member of PF or not. If the new employee is not a member of PF on the date of his joining and if he is drawing more than Rs. 6,500 as basic and DA, then it is not necessary to deduct PF.
However, if the employee is already a member (i.e., if he has not withdrawn his PF before joining the new employment), then it is compulsory on the part of the employer to continue with his membership by deducting PF on Rs. 6,500.
From India, Mumbai
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I need information on the same issue. Some of my clients (employed with company X in Delhi/NCR) have been working for the last 2-3 years. They are now doubtful whether the company is depositing the PF contribution regularly, even though it is being deducted from employees' salaries.
We have doubts because when one employee left the organization and wanted to withdraw the PF, the PF department rejected the form, stating that they do not have a record of the contribution from the employer. Is this not a crime? Deducting PF and not depositing it with the authorities.
Actions for Ex-Employees and Current Employees
What action can be taken by the ex-employee? What can current employees do to safeguard their money and avoid being cheated? Whom should they approach regarding this issue? Since the company is not providing the information, what steps can be taken?
Regards,
for
From India, New Delhi
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We have doubts because when one employee left the organization and wanted to withdraw the PF, the PF department rejected the form, stating that they do not have a record of the contribution from the employer. Is this not a crime? Deducting PF and not depositing it with the authorities.
Actions for Ex-Employees and Current Employees
What action can be taken by the ex-employee? What can current employees do to safeguard their money and avoid being cheated? Whom should they approach regarding this issue? Since the company is not providing the information, what steps can be taken?
Regards,
for
From India, New Delhi
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Could somebody guide me on which option should be chosen in Form 11 if the person is not opting for PF? If a person does not want to opt for PF, does the company have legal implications for it? Is a PPF account a better option if someone wants to quit from PF?
Regards,
Neha
Sr. Executive-HR
Allied Lemuir
From India, Delhi
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Regards,
Neha
Sr. Executive-HR
Allied Lemuir
From India, Delhi
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Dear Members,
Just follow PF rules; it is compulsory to deduct PF up to a basic + DA (if any) of ₹6500 per month. Employers need to deduct PF for any employee up to ₹6500; anything more than that is optional. However, once it is deducted, neither the employer nor the employee can withdraw or stop it.
Ways to Confirm PF Contributions
To confirm whether PF contributions have been deposited or not, there are several ways to verify it. Firstly, ask your employer to provide your individual PF account number. Secondly, request the PF slip, which is issued by the PF department annually to employees whose PF is being deducted. Thirdly, confirm with the bank where the deposit challans are being submitted. Lastly, for further clarity, approach the PRO at the PF office.
Regards,
From India, Delhi
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Just follow PF rules; it is compulsory to deduct PF up to a basic + DA (if any) of ₹6500 per month. Employers need to deduct PF for any employee up to ₹6500; anything more than that is optional. However, once it is deducted, neither the employer nor the employee can withdraw or stop it.
Ways to Confirm PF Contributions
To confirm whether PF contributions have been deposited or not, there are several ways to verify it. Firstly, ask your employer to provide your individual PF account number. Secondly, request the PF slip, which is issued by the PF department annually to employees whose PF is being deducted. Thirdly, confirm with the bank where the deposit challans are being submitted. Lastly, for further clarity, approach the PRO at the PF office.
Regards,
From India, Delhi
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Dear Vipul,
You will find the provision of exemption from EPF under Para 2 (f) of the Employees' P.F. Funds Scheme, 1952. However, it is important to note that only new entrants whose basic salary or wages (basic + DA) exceed Rs. 6500 can benefit from this provision. Old employees who are EPF members and exceed the Rs. 6500 salary limit due to increments should not be excluded from the scope of the act; they will remain members, and PF deductions will be based on the ceiling of Rs. 6500. Additionally, those who have withdrawn their PF upon reaching the age of superannuation or are older than 55 also qualify for the exemption. Form 11 is typically used for previous EPF/EPS details and not for exemption purposes.
Hope you understand the provisions.
Regards,
KIRAN KALE.
From India, Kolhapur
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You will find the provision of exemption from EPF under Para 2 (f) of the Employees' P.F. Funds Scheme, 1952. However, it is important to note that only new entrants whose basic salary or wages (basic + DA) exceed Rs. 6500 can benefit from this provision. Old employees who are EPF members and exceed the Rs. 6500 salary limit due to increments should not be excluded from the scope of the act; they will remain members, and PF deductions will be based on the ceiling of Rs. 6500. Additionally, those who have withdrawn their PF upon reaching the age of superannuation or are older than 55 also qualify for the exemption. Form 11 is typically used for previous EPF/EPS details and not for exemption purposes.
Hope you understand the provisions.
Regards,
KIRAN KALE.
From India, Kolhapur
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Form 11 and Its Significance
Form 11 is a declaration form in which details are provided about the previous P.F. number, indicating whether the employee was a member of P.F. in previous companies. If the employee was part of P.F., it is obligatory for the present employer to deduct the P.F. of the same employee up to Rs. 6,500, even if the basic salary exceeds Rs. 6,500.
Form 26 (6) and Employer Contributions
Form 26 (6) is filled out by employees whose basic salary is more than Rs. 6,500, and acceptance is given by the employer on the same form. In this case, the employee can benefit from P.F. contributions, but the employer is only liable to contribute up to Rs. 6,500, not more than that.
Regards,
Rajiv Singh
From India
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Form 11 is a declaration form in which details are provided about the previous P.F. number, indicating whether the employee was a member of P.F. in previous companies. If the employee was part of P.F., it is obligatory for the present employer to deduct the P.F. of the same employee up to Rs. 6,500, even if the basic salary exceeds Rs. 6,500.
Form 26 (6) and Employer Contributions
Form 26 (6) is filled out by employees whose basic salary is more than Rs. 6,500, and acceptance is given by the employer on the same form. In this case, the employee can benefit from P.F. contributions, but the employer is only liable to contribute up to Rs. 6,500, not more than that.
Regards,
Rajiv Singh
From India
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