Kindly advise whether there is any provision if an employee does not want their PF to be deducted. If yes, kindly explain how, and does their basic salary have any impact on the same?
Thanks & Regards,
C.M. Mohla
From India, Delhi
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15Thanks & Regards,
C.M. Mohla
From India, Delhi
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The employee has an exemption, but some conditions will apply.
1. Please inform me of the employee's basic salary. If it is more than 6500, then it is optional.
2. If the employee has availed of this benefit in their previous company, they should take the PF benefit; they cannot be exempted.
From India, Mumbai
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1. Please inform me of the employee's basic salary. If it is more than 6500, then it is optional.
2. If the employee has availed of this benefit in their previous company, they should take the PF benefit; they cannot be exempted.
From India, Mumbai
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Dear Aditya, 1.Basic is 15000. 2.Yes, pf was deducted in last company Regards C.M.Mohla
From India, Delhi
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From India, Delhi
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In case the basic salary is above the PF limit, the employee can opt out even if they were contributing towards PF in the previous place of work. The same applies to employees who cross the threshold limit due to a pay revision. Please check the form to be filled—I believe it is PF Form 11.
Regards,
Col. Suresh Rathi
From India, Delhi
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Regards,
Col. Suresh Rathi
From India, Delhi
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In this case, it is not optional to be a contributor subject to declaration in Form 11 that he was earlier a member of the scheme. However, his contribution can be restricted up to the present ceiling limit of Rs. 6500/-.
Regards,
P. K. Sharma
From India, Delhi
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Regards,
P. K. Sharma
From India, Delhi
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Please go through the PF Act, clearly mentioned under Section 26, Paragraph 3. If he availed that benefit in the previous company, then he must contribute with the current company (if he has not withdrawn the money). As P K Sharma suggested, you can restrict his contribution up to the ceiling point of ₹6,500/-.
From India, Mumbai
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From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf