Dear All,
Please help!!!
If any employee who was a member of the EPF Scheme with his prior employer and his salary was under 6500. But if he changes employers and his salary is more than 7000 with the new employer, is the new employer forced by the act to give him EPF benefits or not? (If any employee who has withdrawn his PF)
Regards, Vinay Kumar Officer - HR DSC Ltd.
From India, Mumbai
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1Please help!!!
If any employee who was a member of the EPF Scheme with his prior employer and his salary was under 6500. But if he changes employers and his salary is more than 7000 with the new employer, is the new employer forced by the act to give him EPF benefits or not? (If any employee who has withdrawn his PF)
Regards, Vinay Kumar Officer - HR DSC Ltd.
From India, Mumbai
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There is no claim for the employee to enroll in PF in the present job. At the same time, if the employer and employee wish, contributions to PF may be paid either on a salary of Rs. 6500 or on the actual salary.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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Although this is the rule that once a member will always be a member of the PF scheme, but as in your example, you stated he changed the organization and his salary is more than Rs 7000/-, if he has settled his account with the PF department and withdrawn his PF amount, then you can put him in the category of exempted employees. In that case, you need to get a signed Form 11 from him.
From India, Delhi
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From India, Delhi
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This is the correct answer for the request and doubt you made hope it will clear your all doubts
From India, Delhi
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From India, Delhi
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Whether the employee has settled / withdrawn previous PF or not, the new employer has no obligation to enroll him to PF in the next service as his salary is above Rs. 6500. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear Sir, Could you please let me know the Section, sub section clause specifying such rules in EPF & Misc Prov. Act 1952. So that i can present before the management. With regards, Vinay Kumar
From India, Mumbai
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From India, Mumbai
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Dear this is the obligation of the employer to enroll a new employee even if he is getting more than Rs 6500/- if he is already a member of the fund. Please go through para 26 to 28 of PF scheme.
From India, Delhi
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From India, Delhi
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Ceiling limit of salary to deduct th p.f is of rs. 6500 ( only basis salary ) whethe any one earning more than above limit. Pf will be deduct at 6500.
From India, Delhi
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From India, Delhi
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Dear,
As stated, the wage/salary ceiling limit for PF is Rs. 6500/-, and it is a statutory compliance to deduct 12% on Basic+DA+retaining allowance, if any, from the employee's pay. An equal share of the amount has to be added to the total contribution (24%) in the initial service of the employee. The following points are answers to your arising questions:
1) It is not obligatory on the part of the employer to cover employees whose wages/salary is above the ceiling limit of Rs. 6500/-.
2) If Management agreed to cover:
a) Management may restrict to a 12% contribution on Rs. 6500/-
b) May contribute over and above Rs. 6500/- also.
3) If an employee's salary exceeds the ceiling limit for covered employees, he/she will enjoy the benefit till retirement/date of leaving, subject to point no. 2.
4) If the employer does not want to contribute over and above the ceiling limit for covered employees, the employee may contribute more towards his contribution as voluntary provident fund.
Regards,
Chandru
From India, Bangalore
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As stated, the wage/salary ceiling limit for PF is Rs. 6500/-, and it is a statutory compliance to deduct 12% on Basic+DA+retaining allowance, if any, from the employee's pay. An equal share of the amount has to be added to the total contribution (24%) in the initial service of the employee. The following points are answers to your arising questions:
1) It is not obligatory on the part of the employer to cover employees whose wages/salary is above the ceiling limit of Rs. 6500/-.
2) If Management agreed to cover:
a) Management may restrict to a 12% contribution on Rs. 6500/-
b) May contribute over and above Rs. 6500/- also.
3) If an employee's salary exceeds the ceiling limit for covered employees, he/she will enjoy the benefit till retirement/date of leaving, subject to point no. 2.
4) If the employer does not want to contribute over and above the ceiling limit for covered employees, the employee may contribute more towards his contribution as voluntary provident fund.
Regards,
Chandru
From India, Bangalore
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Dear essykkr,
I agree with Abbas P.S. that by virtue of sub-para (ii) (f) of para 2 of the scheme, the new employer of such an employee would enjoy the provision and keep him away from the membership as an excluded employee when his basic salary exceeds Rs. 6500/ what you are stating is in sub-para (i) (f) of para 2 of the scheme. When an employee is a member of EPF and by enhancement exceeds the limit of 6500/-, he should not be excluded from the ambit of the act, and the employer could enjoy the provision of the ceiling of Rs. 6500/-.
However, the member of the EPF would be excluded from the ambit of the act on receiving a basic salary more than 6500/- in a new organization.
Regards,
KIRAN KALE
From India, Kolhapur
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I agree with Abbas P.S. that by virtue of sub-para (ii) (f) of para 2 of the scheme, the new employer of such an employee would enjoy the provision and keep him away from the membership as an excluded employee when his basic salary exceeds Rs. 6500/ what you are stating is in sub-para (i) (f) of para 2 of the scheme. When an employee is a member of EPF and by enhancement exceeds the limit of 6500/-, he should not be excluded from the ambit of the act, and the employer could enjoy the provision of the ceiling of Rs. 6500/-.
However, the member of the EPF would be excluded from the ambit of the act on receiving a basic salary more than 6500/- in a new organization.
Regards,
KIRAN KALE
From India, Kolhapur
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Mr. Vinay Kumar,
With reference to your above note,
Point 1: If an employee joins a new organization, generally, they take the willingness of contribution of PF Remittance when the salary/Basic+DA is more than Rs 6500/-.
Generally, if any employee is willing to have PF deducted, they may not require a willingness form.
If he is not interested in having PF deducted, at this time, a willingness form is required for not being interested in PF contribution.
This form is helpful when PF authorities ask related queries.
If there are any grammar mistakes or communication problems, please ignore.
Regards,
Sarma
9160019220
From India, Hyderabad
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With reference to your above note,
Point 1: If an employee joins a new organization, generally, they take the willingness of contribution of PF Remittance when the salary/Basic+DA is more than Rs 6500/-.
Generally, if any employee is willing to have PF deducted, they may not require a willingness form.
If he is not interested in having PF deducted, at this time, a willingness form is required for not being interested in PF contribution.
This form is helpful when PF authorities ask related queries.
If there are any grammar mistakes or communication problems, please ignore.
Regards,
Sarma
9160019220
From India, Hyderabad
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Dear Sapna,
Please ensure the Employee Compensation Policy for all the Contract Employees. If your company is involved in Mines Excavation, then please ensure the Employee Compensation Policy in respect of Mines employees. Please ensure the implementation of MW. The attrition rate in infrastructure companies is a bit higher than in other industries. So, formulate policies accordingly.
Regards,
Vinay Khatloiya
From India, Mumbai
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Please ensure the Employee Compensation Policy for all the Contract Employees. If your company is involved in Mines Excavation, then please ensure the Employee Compensation Policy in respect of Mines employees. Please ensure the implementation of MW. The attrition rate in infrastructure companies is a bit higher than in other industries. So, formulate policies accordingly.
Regards,
Vinay Khatloiya
From India, Mumbai
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It is not mandatory for the present employer to give you the PF benefits as your present salary is more than Rs.6500 p.m. S Rangaprasad
From India, Hyderabad
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From India, Hyderabad
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Dear, this is the obligation of the employer to enroll a new employee even if he is getting more than Rs 6500/- if he is already a member of the fund. Please go through paragraphs 26 to 28 of the PF scheme.
Section 26 deals with the retention of membership and 28 deals with the transfer. Accordingly, membership will be retained until the payment of deposit/withdrawal of PF. Also, it can be transferred to club with a new account. These are all related to an existing account. However, our discussion is about opening a new account. For the new employer, those who earn more than a monthly salary of Rs. 6500 are excluded employees, and there is no obligation to enroll an excluded employee in PF.
Section 26A stipulates that any doubts in this have to be cleared by the Regional Commissioner. If you still have doubts, kindly contact the RPFC.
Abbas.P.S
From India, Bangalore
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Section 26 deals with the retention of membership and 28 deals with the transfer. Accordingly, membership will be retained until the payment of deposit/withdrawal of PF. Also, it can be transferred to club with a new account. These are all related to an existing account. However, our discussion is about opening a new account. For the new employer, those who earn more than a monthly salary of Rs. 6500 are excluded employees, and there is no obligation to enroll an excluded employee in PF.
Section 26A stipulates that any doubts in this have to be cleared by the Regional Commissioner. If you still have doubts, kindly contact the RPFC.
Abbas.P.S
From India, Bangalore
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