Dear Seniors,
I have some queries regarding EPF.
1. I want to know about the "Excluded Employees" in PF.
2. Is there any Notification or Circular from EPFO for the non-deduction of PF Contribution from employees whose salary is above 15000/- p.m.?
3. What documents have to be provided to the PF inspector for the employees whose PF is not deducted, as their salary is above 15000/- & 18000/-?
Please suggest and guide.
Regards,
Yugal Panchal
7405375693
From India
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2I have some queries regarding EPF.
1. I want to know about the "Excluded Employees" in PF.
2. Is there any Notification or Circular from EPFO for the non-deduction of PF Contribution from employees whose salary is above 15000/- p.m.?
3. What documents have to be provided to the PF inspector for the employees whose PF is not deducted, as their salary is above 15000/- & 18000/-?
Please suggest and guide.
Regards,
Yugal Panchal
7405375693
From India
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Exclusion of Employees from EPF Contributions
There have been several discussions in this forum regarding the exclusion of employees from EPF contributions. In 2014, the coverage was increased from a basic salary of ₹6,500 to ₹15,000.
If an employee wishes to be excluded from EPF deductions, they need to fill out Form 11 and submit it to their employer. In that form, there is a section indicating whether the employee was previously a member of EPF. They need to tick or untick it accordingly.
Apart from the above, there are no clear case laws available to substantiate your point in front of the EPF officials. You can show the Form 11 of all employees whose basic salary is more than ₹15,000, as the act itself states that employees whose basic salary is less than ₹15,000 are required to be covered under this act.
I have found some case laws that can be shown to them if required:
1. [Prakash Consultancy Services: An employer is liable to pay EPF contributions along with damages and interest if it fails to prove that its employees are 'excluded ones'](http://blog.pcsmgmt.com/2015/09/an-employer-is-liable-to-pay-epf.html) — This case law states that the employer should provide the appointment orders, payslips/payroll, and other related documents to EPF officials to prove that their basic pay is more than ₹15,000.
2. [Indian Kanoon](https://indiankanoon.org/doc/173456055/?type=print) — Here it states that the basic pay should be more than ₹15,000, not the whole salary. So you have to ensure that basic pay plus DA is more than ₹15,000 to exclude them from EPF contributions.
I will try to post some more case laws if I find them in the future.
Regards,
[Username Removed For Privacy Reasons]
From India, Chennai
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There have been several discussions in this forum regarding the exclusion of employees from EPF contributions. In 2014, the coverage was increased from a basic salary of ₹6,500 to ₹15,000.
If an employee wishes to be excluded from EPF deductions, they need to fill out Form 11 and submit it to their employer. In that form, there is a section indicating whether the employee was previously a member of EPF. They need to tick or untick it accordingly.
Apart from the above, there are no clear case laws available to substantiate your point in front of the EPF officials. You can show the Form 11 of all employees whose basic salary is more than ₹15,000, as the act itself states that employees whose basic salary is less than ₹15,000 are required to be covered under this act.
I have found some case laws that can be shown to them if required:
1. [Prakash Consultancy Services: An employer is liable to pay EPF contributions along with damages and interest if it fails to prove that its employees are 'excluded ones'](http://blog.pcsmgmt.com/2015/09/an-employer-is-liable-to-pay-epf.html) — This case law states that the employer should provide the appointment orders, payslips/payroll, and other related documents to EPF officials to prove that their basic pay is more than ₹15,000.
2. [Indian Kanoon](https://indiankanoon.org/doc/173456055/?type=print) — Here it states that the basic pay should be more than ₹15,000, not the whole salary. So you have to ensure that basic pay plus DA is more than ₹15,000 to exclude them from EPF contributions.
I will try to post some more case laws if I find them in the future.
Regards,
[Username Removed For Privacy Reasons]
From India, Chennai
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I hope you realize that only someone who joined your organization at a salary (basic and DA) above ₹15000 is exempt. Someone who joined at a lower salary and then received an increment is not exempt.
Furthermore, the employee concerned should not have any PF account existing at the time of joining the company.
From India, Mumbai
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Furthermore, the employee concerned should not have any PF account existing at the time of joining the company.
From India, Mumbai
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If the member, while joining the organization, gives a declaration in Form 11 stating that he was not a member of EPF previously or had withdrawn, and if his present PF wages are above 15K, he will be treated as an "excluded Employee," and CPF will be deducted.
Thanks,
Vidyadhar Bhat
From India, Pune
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Thanks,
Vidyadhar Bhat
From India, Pune
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Hi If such excluded employee wants to become a member of pf say after two-three years of joining, can employer allow him from that date. ? What does PF act say on this ? regards Puran Dangwal
From India, New Delhi
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From India, New Delhi
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Provident Fund - Excluded Employee - Definition.pdf