I have a question. We recruited a new employee to our company. During the salary discussion, he mentioned that he doesn't want PF. HR is asking for a 25,000 take-home salary. We decided to offer him a gross salary of 25k (including PF). However, he doesn't want PF but wants 25k in hand. Can we exclude him from PF? Please guide me.
From India, Trivandrum
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From India, Trivandrum
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Hi, if your company is already covered under PF, then you cannot exclude him from PF. Still, if you want PF, don't bring him on rolls. Hire him on a short-term contract basis as a Retainer consultant wherein only 10% TDS has to be deducted. This is also a temporary measure only. Even for consultants, PF is mandatory.
From India, Madras
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1015From India, Madras
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Nisha, this topic has been discussed so many times that I am tired of even seeing the heading. Please use the search option on the main page, and you will see all the discussions.
PF Account Inclusion
If the person already has a PF account, then you will have to include him in PF, and you both don't have a choice. If he does not have an existing PF account, since his starting salary with you is above 15,000 a month, you can treat him as an exempt employee and exclude him, but do the paperwork properly.
From India, Mumbai
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PF Account Inclusion
If the person already has a PF account, then you will have to include him in PF, and you both don't have a choice. If he does not have an existing PF account, since his starting salary with you is above 15,000 a month, you can treat him as an exempt employee and exclude him, but do the paperwork properly.
From India, Mumbai
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx