Hi,
Please provide a solution for below mentioned illustration for PF-opt out case.
An employee has joined a co. with a CTC of 30000, which includes 10000 as basic salary & 1200 as co.s contribution towards PF.
Since his Basic Salary is more than 6500 he wish for non-deduciton of PF (Opt-out) & have filled form 11 for the same.
Now, in this situation is he eligible to receive employer contribution towards pf as a part of his salary, since it's been mentioned in his offer/appointment letter???????????????
Regard,
Prafull Ghag
From India, Mumbai
Please provide a solution for below mentioned illustration for PF-opt out case.
An employee has joined a co. with a CTC of 30000, which includes 10000 as basic salary & 1200 as co.s contribution towards PF.
Since his Basic Salary is more than 6500 he wish for non-deduciton of PF (Opt-out) & have filled form 11 for the same.
Now, in this situation is he eligible to receive employer contribution towards pf as a part of his salary, since it's been mentioned in his offer/appointment letter???????????????
Regard,
Prafull Ghag
From India, Mumbai
If he opt out on his own, then employer contribution is not eligible even it is mentioned in his offer
From India, Madras
7From India, Madras
Hi,
Employee has liberty to opt for PF & if he do so he is eligible to receive pf contribution as it is a part of his CTC. Employer may pay this amt as a taxable component to his employee & it could be added in his Gross salary.
In most of the companies, employer doesnt contribute towards pf-opt out case but it doesnt mean that its an unfair practice.
Regards,
Prafull Ghag
From India, Mumbai
Employee has liberty to opt for PF & if he do so he is eligible to receive pf contribution as it is a part of his CTC. Employer may pay this amt as a taxable component to his employee & it could be added in his Gross salary.
In most of the companies, employer doesnt contribute towards pf-opt out case but it doesnt mean that its an unfair practice.
Regards,
Prafull Ghag
From India, Mumbai
Hi,
employee can opt the provident fund,if his basic salary more than Rs. 6500/- PM and was not pf member earlier and given consent by filling form 11 (revised). and he is entitle for employer share being part of his CTC.
Regards,
S S Rawat.
(consultant)
From India, Jhajjar
employee can opt the provident fund,if his basic salary more than Rs. 6500/- PM and was not pf member earlier and given consent by filling form 11 (revised). and he is entitle for employer share being part of his CTC.
Regards,
S S Rawat.
(consultant)
From India, Jhajjar
Hi Surendra, Can you please provide under which section, an employee who opt-out of pf is entitle to receive employer’s contribution towards pf. Regards, Prafull
From India, Mumbai
From India, Mumbai
Dear Prafull,
The employee has joined on 30k as CTC. In the case of CTC both side contribution is deducted from the amount only. If any employee want for the exemption then the part of PF can be deleted and the salary structure can be modified accordingly. This is common practice now-a-days. In my company I am only the one who has opeted for the exemption and then the strecture was modified accordingly.
Rajendra
The employee has joined on 30k as CTC. In the case of CTC both side contribution is deducted from the amount only. If any employee want for the exemption then the part of PF can be deleted and the salary structure can be modified accordingly. This is common practice now-a-days. In my company I am only the one who has opeted for the exemption and then the strecture was modified accordingly.
Rajendra
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls