Hi,
Please provide a solution for the below-mentioned illustration for the PF opt-out case. An employee has joined a company with a CTC of 30000, which includes 10000 as basic salary and 1200 as the company's contribution towards PF. Since his basic salary is more than 6500, he wishes for non-deduction of PF (Opt-out) and has filled out Form 11 for the same. Now, in this situation, is he eligible to receive employer contribution towards PF as a part of his salary, since it's been mentioned in his offer/appointment letter?
Regards, Prafull Ghag
From India, Mumbai
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Please provide a solution for the below-mentioned illustration for the PF opt-out case. An employee has joined a company with a CTC of 30000, which includes 10000 as basic salary and 1200 as the company's contribution towards PF. Since his basic salary is more than 6500, he wishes for non-deduction of PF (Opt-out) and has filled out Form 11 for the same. Now, in this situation, is he eligible to receive employer contribution towards PF as a part of his salary, since it's been mentioned in his offer/appointment letter?
Regards, Prafull Ghag
From India, Mumbai
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If he opt out on his own, then employer contribution is not eligible even it is mentioned in his offer
From India, Madras
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7From India, Madras
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Hi,
An employee has the liberty to opt for PF, and if he does so, he is eligible to receive PF contributions as it is a part of his CTC. The employer may pay this amount as a taxable component to his employee, and it could be added to his Gross salary.
In most companies, the employer doesn't contribute towards PF in an opt-out case, but it doesn't mean that it's an unfair practice.
Regards, Prafull Ghag
From India, Mumbai
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An employee has the liberty to opt for PF, and if he does so, he is eligible to receive PF contributions as it is a part of his CTC. The employer may pay this amount as a taxable component to his employee, and it could be added to his Gross salary.
In most companies, the employer doesn't contribute towards PF in an opt-out case, but it doesn't mean that it's an unfair practice.
Regards, Prafull Ghag
From India, Mumbai
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Hi,
An employee can opt for the provident fund if their basic salary is more than Rs. 6500/- per month, they have not been a PF member earlier, and have given consent by filling Form 11 (revised). They are entitled to the employer's share as part of their CTC.
Regards,
S S Rawat
(Consultant)
From India, Jhajjar
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An employee can opt for the provident fund if their basic salary is more than Rs. 6500/- per month, they have not been a PF member earlier, and have given consent by filling Form 11 (revised). They are entitled to the employer's share as part of their CTC.
Regards,
S S Rawat
(Consultant)
From India, Jhajjar
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Hi Surendra, Can you please provide under which section, an employee who opt-out of pf is entitle to receive employer’s contribution towards pf. Regards, Prafull
From India, Mumbai
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From India, Mumbai
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Dear Prafull,
The employee has joined on a 30k CTC. In the case of CTC, both side contributions are deducted from the amount only. If any employee wants an exemption, then a part of the PF can be deleted, and the salary structure can be modified accordingly. This is a common practice nowadays. In my company, I am the only one who has opted for the exemption, and then the structure was modified accordingly.
Rajendra
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The employee has joined on a 30k CTC. In the case of CTC, both side contributions are deducted from the amount only. If any employee wants an exemption, then a part of the PF can be deleted, and the salary structure can be modified accordingly. This is a common practice nowadays. In my company, I am the only one who has opted for the exemption, and then the structure was modified accordingly.
Rajendra
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