In Form 11, employees can declare that they were not a prior member of PF. Is there any form where the employee can declare he/she is not willing to continue or to be a new member of PF?
For employees earning less than 6500, they avoid doing formalities after resignation to get or transfer their PF amount. As a result, they are deprived of that amount. Is it possible to give them the gross salary in hand without PF deduction?
If a below-6500-employee is not willing to have PF deduction, how can it be resolved?
From India, Mumbai
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For employees earning less than 6500, they avoid doing formalities after resignation to get or transfer their PF amount. As a result, they are deprived of that amount. Is it possible to give them the gross salary in hand without PF deduction?
If a below-6500-employee is not willing to have PF deduction, how can it be resolved?
From India, Mumbai
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Dear Sonai,
If any other person thinks like that, we can understand. But if an HR personnel thinks like that, we are really unable to understand. You should convey to them that it is a social security legislation, and all should be members of this. If any member dies during service, can any employer grant a pension to the widow? I think no one; only PF takes care of the widow and children.
Dear, let us come to your point. There is no form as you have asked, and there is no choice for the individual or employer. If the basic is less than 6500, he has to be a member of PF at the time of joining, and he will remain a member of PF till he works in this organization, irrespective of basic.
Thank you.
J. S. Malik
From India, Delhi
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174If any other person thinks like that, we can understand. But if an HR personnel thinks like that, we are really unable to understand. You should convey to them that it is a social security legislation, and all should be members of this. If any member dies during service, can any employer grant a pension to the widow? I think no one; only PF takes care of the widow and children.
Dear, let us come to your point. There is no form as you have asked, and there is no choice for the individual or employer. If the basic is less than 6500, he has to be a member of PF at the time of joining, and he will remain a member of PF till he works in this organization, irrespective of basic.
Thank you.
J. S. Malik
From India, Delhi
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Dear Mr/Ms. Sonai,
As you think, you cannot act in such a manner, and you do not have the right to exempt employees from PF contributions. If the employees are below 20, you can voluntarily offer benefits to them.
In case an employee dies, who will take care of their widow and children? Only PF will provide support to them. Therefore, please refrain from taking any actions that do not benefit the employees and strive to provide good benefits.
Regards,
Manju
From India
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As you think, you cannot act in such a manner, and you do not have the right to exempt employees from PF contributions. If the employees are below 20, you can voluntarily offer benefits to them.
In case an employee dies, who will take care of their widow and children? Only PF will provide support to them. Therefore, please refrain from taking any actions that do not benefit the employees and strive to provide good benefits.
Regards,
Manju
From India
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Dear Mallik,
As per what I know, there is a form on which everyone can voluntarily write and indicate that they do not wish to opt for the PF scheme. It has to be done by all employees collectively. However, once opted, nothing can be changed. It is a one-way decision.
Mallik, I am sorry for bringing this up here, but I have noticed that some employers deduct the PF contribution from employees' salaries but do not deposit the same. Moreover, I have seen employers causing issues for employees who leave their companies by refusing to sign the PF withdrawal forms.
Regards,
Rajeev
From India, Bangalore
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As per what I know, there is a form on which everyone can voluntarily write and indicate that they do not wish to opt for the PF scheme. It has to be done by all employees collectively. However, once opted, nothing can be changed. It is a one-way decision.
Mallik, I am sorry for bringing this up here, but I have noticed that some employers deduct the PF contribution from employees' salaries but do not deposit the same. Moreover, I have seen employers causing issues for employees who leave their companies by refusing to sign the PF withdrawal forms.
Regards,
Rajeev
From India, Bangalore
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Dear Rajeev,
Sonai does not have the problem which you have mentioned. They are honest employers and they deposit PF on time. They want to avoid PF contribution because generally people do not get a transfer of funds/withdrawal of funds after leaving the organization. In that case, for the benefit of employees, they can form a PF trust which is legal, but you cannot avoid PF.
Thanks,
J. S. Malik
From India, Delhi
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Sonai does not have the problem which you have mentioned. They are honest employers and they deposit PF on time. They want to avoid PF contribution because generally people do not get a transfer of funds/withdrawal of funds after leaving the organization. In that case, for the benefit of employees, they can form a PF trust which is legal, but you cannot avoid PF.
Thanks,
J. S. Malik
From India, Delhi
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My dear friend,
Please don't think to avoid the PF contribution of employees, even though they insisted, as there is no way to avoid PF for eligible employees i.e., those with less than ₹6500 basic + DA. However, you can reduce the burden by minimizing the Basic + DA in their salary structure.
Provident Fund is the ideal social security provision for organized employees compared to ESI and others. In the case of an employee's normal death, you can provide a pension to the deceased family, but this is not possible under ESI. ESI pension is only for deaths that occur while on duty.
M. GOPI HR 99895 88029
From India, Visakhapatnam
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Please don't think to avoid the PF contribution of employees, even though they insisted, as there is no way to avoid PF for eligible employees i.e., those with less than ₹6500 basic + DA. However, you can reduce the burden by minimizing the Basic + DA in their salary structure.
Provident Fund is the ideal social security provision for organized employees compared to ESI and others. In the case of an employee's normal death, you can provide a pension to the deceased family, but this is not possible under ESI. ESI pension is only for deaths that occur while on duty.
M. GOPI HR 99895 88029
From India, Visakhapatnam
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Malik ji's view is correct. Why avoid PF deduction, which gives a pension to widows if an employee dies? The second point is that you are receiving a handsome 8.5% to 9% interest on your PF balance (Do you receive interest from banks on your savings account?). The third point is that the employee is receiving a 12% contribution from the employer.
The issue being discussed here is that the employer is not signing the withdrawal form for the employee's PF. I want to clarify here that even if the employer does not sign the form for any reason, the employee can still receive the withdrawal benefits.
From India, Nagpur
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The issue being discussed here is that the employer is not signing the withdrawal form for the employee's PF. I want to clarify here that even if the employer does not sign the form for any reason, the employee can still receive the withdrawal benefits.
From India, Nagpur
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Dear Prashant,
If one employee has their basic at 6,000, and another employee has 10,000, then are PF and ESI applicable to both? Keep in mind the company strength is 24.
If 10 employees are earning less than 10,000 out of 24, then what is the PF and ESI applicability?
Thanks,
Chandra
From India, Hyderabad
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If one employee has their basic at 6,000, and another employee has 10,000, then are PF and ESI applicable to both? Keep in mind the company strength is 24.
If 10 employees are earning less than 10,000 out of 24, then what is the PF and ESI applicability?
Thanks,
Chandra
From India, Hyderabad
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Dear Chandra,
ESI and PF are separate acts. ESI is deducted from the gross salary and is applicable if someone earns less than 10k per month as gross income, whereas PF is deducted from basic pay + DA and is applicable to those who earn less than 6500 at the time of joining.
If a company has a strength of 24, both acts will apply because the applicability does not have any concern with exempted employees.
Thanks,
JS Malik
From India, Delhi
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ESI and PF are separate acts. ESI is deducted from the gross salary and is applicable if someone earns less than 10k per month as gross income, whereas PF is deducted from basic pay + DA and is applicable to those who earn less than 6500 at the time of joining.
If a company has a strength of 24, both acts will apply because the applicability does not have any concern with exempted employees.
Thanks,
JS Malik
From India, Delhi
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Dear Malik Sir,
If an employee covered under the EPF Act dies due to natural causes or in an accident after company hours or while on leave, will their dependents be eligible for pension benefits?
In your earlier response,
Parveen Sharma
From India, Chandigarh
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If an employee covered under the EPF Act dies due to natural causes or in an accident after company hours or while on leave, will their dependents be eligible for pension benefits?
In your earlier response,
Parveen Sharma
From India, Chandigarh
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Dear Parveen,
The employee dependents will receive pension benefits regardless of the cause or timing of death. The only condition is that the employee must be a member of the PF until their death.
In the case of ESIC, the member should be on company premises or working for the company at the time of death for the employee dependents to be eligible for benefits.
Best Regards,
Prashant Patil
From India, Nagpur
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The employee dependents will receive pension benefits regardless of the cause or timing of death. The only condition is that the employee must be a member of the PF until their death.
In the case of ESIC, the member should be on company premises or working for the company at the time of death for the employee dependents to be eligible for benefits.
Best Regards,
Prashant Patil
From India, Nagpur
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It is not possible that organisation should not deduct PF for employee who basic is below Rs.6500/-.It is a mandatory.
From India, Madras
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From India, Madras
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Dear Sir,
If any employee's Basic + DA is above 6500/-, then is he eligible for PF deductions or the scheme, or does the company have to contribute 12% compulsorily, but his share is voluntary? Can you please brief me clearly about this?
Regards,
Karthik
From India, Thrissur
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If any employee's Basic + DA is above 6500/-, then is he eligible for PF deductions or the scheme, or does the company have to contribute 12% compulsorily, but his share is voluntary? Can you please brief me clearly about this?
Regards,
Karthik
From India, Thrissur
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Dear Karthik,
If an employee's basic salary plus DA is more than 6500 at the time of joining, the employer is not bound to pay their share as well as not bound to deduct the employee's share. I think now you are clear.
Thanks,
J.S. Malik
From India, Delhi
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If an employee's basic salary plus DA is more than 6500 at the time of joining, the employer is not bound to pay their share as well as not bound to deduct the employee's share. I think now you are clear.
Thanks,
J.S. Malik
From India, Delhi
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PF & ESI.zip
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Exp.and esi pf mis format.xls