We are an education organization. We have been deducting PF for all the employees from the day of joining. Now we think for the new joiners having a basic salary above Rs. 6500/- per month, we shall provide the option to the joiners whether they need PF deductions or not. Can we do this for part of the employees...
From India, Mumbai
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From India, Mumbai
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If the new joiners are not interested in deducting PF (those who are drawing a basic salary of more than Rs 6500 ONLY), you can request a letter from them asking not to be covered under PF as they are drawing ________salary per month. Based on that, you need not deduct PF for them. HOWEVER, KEEP IN MIND THAT FOR EXISTING EMPLOYEES, EVEN THOUGH THEY ARE EARNING ABOVE 6500, PF DEDUCTION SHOULD NOT BE STOPPED.
From India, Madras
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66From India, Madras
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Dear Mr. Shobhaa Thakur,
Yes, we also deduct the PF of employees who exceed the basic limit, i.e., 6500/-. This basically depends on the employer whether they deduct the PF of employees who exceed the PF limit or not.
On the other hand, if an employee doesn't want to deduct their PF (in case they are exceeding the PF limit - for new joiners only, not for existing employees), they have the option not to deduct their PF. They have to fill a Form 11 or submit an application to declare that they do not want the PF to be deducted to the company's HR Department at the time of joining.
For existing employees, if an employee crosses the PF limit, it is not withdrawn, as already mentioned by Mr. P. Ramachandran.
Regards,
Nandan Singh Negi
New Delhi
From India, New Delhi
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Yes, we also deduct the PF of employees who exceed the basic limit, i.e., 6500/-. This basically depends on the employer whether they deduct the PF of employees who exceed the PF limit or not.
On the other hand, if an employee doesn't want to deduct their PF (in case they are exceeding the PF limit - for new joiners only, not for existing employees), they have the option not to deduct their PF. They have to fill a Form 11 or submit an application to declare that they do not want the PF to be deducted to the company's HR Department at the time of joining.
For existing employees, if an employee crosses the PF limit, it is not withdrawn, as already mentioned by Mr. P. Ramachandran.
Regards,
Nandan Singh Negi
New Delhi
From India, New Delhi
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Dear Thakur, reply sent by MR.Nandan singh negi& Mr.Ramachandran.are very clear .Pl .feel free to get further clarifications if any Cite HR members are always ready to help . Regards, A Elangovan
From India, Madras
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From India, Madras
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These types of behaviors should be cracked down by the government of India. It has become a trend in industries to "play" with people's money. One of the major issues is the attitude of not putting India in its required place. Respect.
From India, Ahmadabad
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From India, Ahmadabad
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Hi,
The information mentioned below is okay, but I just have confusion about the line: "BUT KEEP IT IN MIND THAT FOR EXISTING EMPLOYEES, THOUGH THEY ARE CROSSING 6500, PF DEDUCTION SHOULD NOT BE WITHDRAWN."
It means that if a company is registered under the PF scheme after the initial date, then existing employees whose basic salary is above Rs 6500 are mandatorily required to have PF deducted.
I think this is not the case. If they fill out Form 11 and declare that they were not a member of PF in the past and currently draw a basic salary above Rs 6500, then they do not need to be a member of PF.
Regards,
HR
From India, Delhi
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The information mentioned below is okay, but I just have confusion about the line: "BUT KEEP IT IN MIND THAT FOR EXISTING EMPLOYEES, THOUGH THEY ARE CROSSING 6500, PF DEDUCTION SHOULD NOT BE WITHDRAWN."
It means that if a company is registered under the PF scheme after the initial date, then existing employees whose basic salary is above Rs 6500 are mandatorily required to have PF deducted.
I think this is not the case. If they fill out Form 11 and declare that they were not a member of PF in the past and currently draw a basic salary above Rs 6500, then they do not need to be a member of PF.
Regards,
HR
From India, Delhi
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