Can we exempt an employee from coverage of PF if he / she submits self declaration that he/ she does not want the PF Coverage since he is maintaining PPF Account. If so, how do we justify this?
From India, New Delhi
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1From India, New Delhi
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Dear Ujjal,
It is not possible to exclude him for being a member of a PPF account. He can be excluded when he is drawing a Basic Salary of >6500/ and he is not a member of EPF before.
S. Sethupathy
From India, Coimbatore
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It is not possible to exclude him for being a member of a PPF account. He can be excluded when he is drawing a Basic Salary of >6500/ and he is not a member of EPF before.
S. Sethupathy
From India, Coimbatore
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Dear Sethupathy, we’ll still have to pay PF employer contribution for max. 6500/- even if the employee is drawing more than 6500 p.m., isn’t it?
From India, Mumbai
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From India, Mumbai
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Dear Sethupathy,
Thank you, sir, for the value added. One more submission in continuation to the above. I have come across a few cases of individuals who are not covered under PF after submitting the self-declaration, and whose Basic is more than Rs 6,500/- per month at the discretion of management.
Regards,
Ujjal
From India, New Delhi
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Thank you, sir, for the value added. One more submission in continuation to the above. I have come across a few cases of individuals who are not covered under PF after submitting the self-declaration, and whose Basic is more than Rs 6,500/- per month at the discretion of management.
Regards,
Ujjal
From India, New Delhi
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EPF & MP Act, 1952 covers the whole of India except J&K state. In the PF Act, the explanation of an employee is detailed below:
"Contract labour is included but casual labour is excluded for counting the strength of employees. An apprentice is only a learner and not an employee. Trainees cannot be taken as employees. Sweepers and Chowkidar drawing paltry sums per month and not borne on the regular staff sheet are to be excluded from the employment strength. Directors, working partners, managing partners, domestic servants, and contractors are not employees. The onus of proving employment strength is on the establishment. Change in ownership is immaterial for the applicability of the Act. Composite factories come within the purview of the section."
Hence, an employee has to be necessarily covered under PF, even if their salary exceeds Rs. 6500 per month. Holding a PPF Account does not mean that one can be exempted from PF.
Thanks & regards,
R K Nair
From India, Aizawl
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"Contract labour is included but casual labour is excluded for counting the strength of employees. An apprentice is only a learner and not an employee. Trainees cannot be taken as employees. Sweepers and Chowkidar drawing paltry sums per month and not borne on the regular staff sheet are to be excluded from the employment strength. Directors, working partners, managing partners, domestic servants, and contractors are not employees. The onus of proving employment strength is on the establishment. Change in ownership is immaterial for the applicability of the Act. Composite factories come within the purview of the section."
Hence, an employee has to be necessarily covered under PF, even if their salary exceeds Rs. 6500 per month. Holding a PPF Account does not mean that one can be exempted from PF.
Thanks & regards,
R K Nair
From India, Aizawl
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Yes,
Any person joining an organization for the first time as a fresher can give a letter to the employer stating that they are not interested in PF enrollment voluntarily and wholeheartedly, and their salary is above 6500/- per month. They are considered an exempted employee under the EPF scheme and do not need to be enrolled in the EPF scheme. However, if they are already a member in any organization, they have to be covered under the EPF scheme.
Regards,
R. Palaniswamy
From India, Coimbatore
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Any person joining an organization for the first time as a fresher can give a letter to the employer stating that they are not interested in PF enrollment voluntarily and wholeheartedly, and their salary is above 6500/- per month. They are considered an exempted employee under the EPF scheme and do not need to be enrolled in the EPF scheme. However, if they are already a member in any organization, they have to be covered under the EPF scheme.
Regards,
R. Palaniswamy
From India, Coimbatore
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Dear sir if she getting more then 6500/ then she exempt from pf if she is taking less then 6500/ then she can not be exempt from pf. Thanks pawan bhatia 09812585353
From India, Bahadurgarh
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From India, Bahadurgarh
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As per the PF department's clarification, if any employee is receiving a basic salary of more than Rs. 6500 per month, then based on his declaration (as per Form 11), he can opt out of the PF bracket.
However, if the employee had PF contributions in a previous company and did not withdraw them, he must be added to the PF bracket.
From India, Bangalore
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However, if the employee had PF contributions in a previous company and did not withdraw them, he must be added to the PF bracket.
From India, Bangalore
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Mr. Ujjal,
PF Scheme is a social security scheme extended to the whole of India. Here, I would like to make a mention regarding the ceiling and exemption:
a. Rs. 6500/ per month is the wage ceiling up to which the contributions can be made by both employees and employers. In case both employees and the employer wish to contribute beyond the wage ceiling, there is no restriction.
b. No employee can be exempted from the scheme. However, a person covered under the scheme who is above 58 years of age and has already benefited may be exempted from the coverage. Similarly, a person not covered under the scheme, has not received any benefits, and is over 58 years of age, if he joins an establishment covered under the scheme, should also be included in the scheme.
Palani
From India, Tiruppur
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PF Scheme is a social security scheme extended to the whole of India. Here, I would like to make a mention regarding the ceiling and exemption:
a. Rs. 6500/ per month is the wage ceiling up to which the contributions can be made by both employees and employers. In case both employees and the employer wish to contribute beyond the wage ceiling, there is no restriction.
b. No employee can be exempted from the scheme. However, a person covered under the scheme who is above 58 years of age and has already benefited may be exempted from the coverage. Similarly, a person not covered under the scheme, has not received any benefits, and is over 58 years of age, if he joins an establishment covered under the scheme, should also be included in the scheme.
Palani
From India, Tiruppur
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Dear All Senior,
Greetings of the day!
I have a confusion. If someone is eligible under PF and they receive a promotion along with a salary increment, can they be exempted from PF with the same card or code number? Before the increment, their basic salary was less than 6500/-, and now it is more than 6500/-. Is it possible for this to happen?
Thank you.
From India, Gurgaon
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Greetings of the day!
I have a confusion. If someone is eligible under PF and they receive a promotion along with a salary increment, can they be exempted from PF with the same card or code number? Before the increment, their basic salary was less than 6500/-, and now it is more than 6500/-. Is it possible for this to happen?
Thank you.
From India, Gurgaon
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Hi, pls tell me about the following, 1. if an person is hired as consultant is it he falls under employee of the company. 2. if an person is under apprenticeship is it pf is compulsory to pay
From India, Hyderabad
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From India, Hyderabad
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Dear Sir, if employee getting more then 6500 basic then we can remove from p.f ?? Himmatsinh Zala
From India, Ahmadabad
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From India, Ahmadabad
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Best answer is available at this link: [Will an employee get exemption under the Provident Fund Act in India? - Yahoo! Answers India](http://in.answers.yahoo.com/question/index?qid=20080717224419AA3OA7u)
Harikumar
From India, Mumbai
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Harikumar
From India, Mumbai
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Dear All, I am adding few files on Establishment Exemption (1-3) and on Expat (4 & 5). Kindly go through them and post your queries. S.Sethupathy, Excellent Hr Services, Erode.
From India, Coimbatore
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From India, Coimbatore
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If the Salary is More Than Rs.6500/- than he can be exempted. But the condition is that he should not be a member of EPF earlier. You have to get signed Form No.11.
From India, Ludhiana
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From India, Ludhiana
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I understand that if any employee is having basic more than 6500 than he can opt for exemption under sec 17 by filing form 1 and form 11. Is it right? Seniors please clarify my doubt. Gauri
From India, Mumbai
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From India, Mumbai
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Can an employee exempt themselves and their employer from the deduction of PF if they give a written request stating that they do not want to enroll for PF deductions?
Please advise.
Regards,
Suman Arora
10.09.2011
From India, New Delhi
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Please advise.
Regards,
Suman Arora
10.09.2011
From India, New Delhi
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In our company suddenly employer stop the PF those basic is more than 6500/- without the consent of employees. Is it right practice.
From India, Indore
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From India, Indore
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Dear Rajiv,
I had, for the first time, engaged 21 fresh accountants to work on a government project in Uttar Pradesh on a one-year contract basis, with a total fixed honorarium amount of Rs. 10,000 per month.
Will these contractual workers be exempt from PF?
Thanks,
Rajiv
From India, Lucknow
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I had, for the first time, engaged 21 fresh accountants to work on a government project in Uttar Pradesh on a one-year contract basis, with a total fixed honorarium amount of Rs. 10,000 per month.
Will these contractual workers be exempt from PF?
Thanks,
Rajiv
From India, Lucknow
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