Hi, my company is providing PF to employees. Now, we are considering starting PPF instead of PF due to various issues with the Provident Fund Department. We do not want to discontinue all PF but intend to continue with the salary limit of Rs. 6500. However, we wish to discontinue providing PF for the higher salary class, who were not previously covered under PF but were given PF voluntarily. This particular section of PF will be transitioned to PPF.
Transitioning from PF to PPF
Is it permissible to stop providing PF for the higher salary class even though they are not covered under the Act?
Thank you.
From India, Kochi
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Transitioning from PF to PPF
Is it permissible to stop providing PF for the higher salary class even though they are not covered under the Act?
Thank you.
From India, Kochi
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Dear Biju,
You cannot stop existing employees' PF deduction even if they are earning a basic salary of more than ₹6,500. It is applicable for new employees only. For making an exemption from the act, you need to submit the prescribed form to the concerned department within 30 days from the date of joining of the employee. If you have any further doubts, please reply.
Regards,
Janardan
From India, Mumbai
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87You cannot stop existing employees' PF deduction even if they are earning a basic salary of more than ₹6,500. It is applicable for new employees only. For making an exemption from the act, you need to submit the prescribed form to the concerned department within 30 days from the date of joining of the employee. If you have any further doubts, please reply.
Regards,
Janardan
From India, Mumbai
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An Active PF cannot be discontinued. For the new employees you can take form 11 and not deduct the PF from them. for the higher grade the minimum PF applicable for Rs.6500/- continues.....
From India, Mumbai
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From India, Mumbai
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