What is the possibilities if PF opted out employee asking to add him in PF schema after 6 months of joining?
From India, Bengaluru
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From India, Bengaluru
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Scenarios for Excluding an Employee from PF Coverage
There are different scenarios under which you can exclude an employee from PF coverage.
One, this is the first employment of the employee, and at the time of his joining, his PF qualifying salary is more than Rs 15,000.
Second, the employee was a member of EPF but has already withdrawn his PF accumulations on his retirement and is getting a pension from EPFO.
Third, due to an oversight, the HR person missed covering him under EPF. He was already a member of PF when he joined your establishment, but since his salary exceeded Rs 15,000, the person concerned thought that he should not be enrolled because his salary exceeded Rs 15,000.
Form 11 and Its Importance
In order to overcome these situations, HR used to get Form 11 from all the new joiners, which will declare whether he was a member or not a member of EPF. If he declares that he is a member, you should give him PF, and if not a member of PF, you can decide whether to cover him or not. Most companies provide PF because it is an investment, and the CTC is structured in such a way that the contribution payable by the employer is also a part of the remuneration payable to the employee.
Handling PF Coverage in Specific Cases
Now in your case, if you had collected Form 11 and the employee had declared that he was not a member of PF before he joined your organization, there is no illegality in it. You can either cover him now, and for all purposes connected with PF, his date of joining will be the date on which he is covered, i.e., today. It should never be the actual date because putting the actual date of joining would make you liable to pay interest and damages for non-payment of contributions in time.
In the absence of the employer's contribution to PF, the remuneration would be inflated to the extent of it, but when you start contributing PF, you may have to make adjustments in salary also. For example, if the salary fixed was Rs 30,000 without PF, but when you start contributing PF, the cost would become Rs 31,800 unless an understanding is reached.
Suppose the employee had declared that he was a member of PF and given the UAN, but you did not cover him because his salary exceeded Rs 15,000, then the fault is with you only, and the employer has to cover him from the date of actual joining and contribute the contributions for the whole period. You cannot even recover the employee's share of the past period. You should also bear the costs of interests and damages.
From India, Kannur
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4526There are different scenarios under which you can exclude an employee from PF coverage.
One, this is the first employment of the employee, and at the time of his joining, his PF qualifying salary is more than Rs 15,000.
Second, the employee was a member of EPF but has already withdrawn his PF accumulations on his retirement and is getting a pension from EPFO.
Third, due to an oversight, the HR person missed covering him under EPF. He was already a member of PF when he joined your establishment, but since his salary exceeded Rs 15,000, the person concerned thought that he should not be enrolled because his salary exceeded Rs 15,000.
Form 11 and Its Importance
In order to overcome these situations, HR used to get Form 11 from all the new joiners, which will declare whether he was a member or not a member of EPF. If he declares that he is a member, you should give him PF, and if not a member of PF, you can decide whether to cover him or not. Most companies provide PF because it is an investment, and the CTC is structured in such a way that the contribution payable by the employer is also a part of the remuneration payable to the employee.
Handling PF Coverage in Specific Cases
Now in your case, if you had collected Form 11 and the employee had declared that he was not a member of PF before he joined your organization, there is no illegality in it. You can either cover him now, and for all purposes connected with PF, his date of joining will be the date on which he is covered, i.e., today. It should never be the actual date because putting the actual date of joining would make you liable to pay interest and damages for non-payment of contributions in time.
In the absence of the employer's contribution to PF, the remuneration would be inflated to the extent of it, but when you start contributing PF, you may have to make adjustments in salary also. For example, if the salary fixed was Rs 30,000 without PF, but when you start contributing PF, the cost would become Rs 31,800 unless an understanding is reached.
Suppose the employee had declared that he was a member of PF and given the UAN, but you did not cover him because his salary exceeded Rs 15,000, then the fault is with you only, and the employer has to cover him from the date of actual joining and contribute the contributions for the whole period. You cannot even recover the employee's share of the past period. You should also bear the costs of interests and damages.
From India, Kannur
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