Dear All, pleas help me with the following: IS PF manadatory for all the employees, whose gross is over 6,000 p/m? is there any procedure, to avoid the deduction? pls help. suni.
From India, Bangalore
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From India, Bangalore
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Dear Suni, For EPF deduction general salary components are Basic+DA. If it is equal to or below Rs. 6500, then PF is mandatory. Abbas.P.S
From India, Bangalore
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530From India, Bangalore
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According to PF norms, it is mandatory to deduct from employees, and the company has to contribute the same percentage, which is 12%. If any employee's basic salary crosses Rs. 6500 and they do not want to continue as a PF contribution member, they can opt for voluntary contribution.
From India, Hyderabad
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From India, Hyderabad
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Dear Abbas, one of my friend is getting Rs 7,000 / m. that is his take home. But he doent want to opt for PF. Therefore, is it possible for him to cancel the PF deductin? plz help. Suni.
From India, Bangalore
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From India, Bangalore
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Dear Suni, To my knowledge, once an employee is enrolled in the EPF, they must continue even if their salary exceeds the ceiling limit. Colleagues with different experiences or awareness of such provisions may share their knowledge.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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Dear Suni, According to my knowladge the PF deduction will be made if His Basi+da is equal or less than 6500/-
From India, Gurgaon
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From India, Gurgaon
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Hi Abbas,
According to the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the definition of an excluded member is as follows: "an employee whose pay, at the time he is otherwise entitled to become a member of the fund, exceeds Rs. 6,500 per month." Based on this definition, we can exempt any employee from contributing to the Provident Fund if their pay surpasses this limit. Feel free to revert if you have any queries.
Regards,
Ravi
Hi Suni,
If your friend is receiving a salary of Rs. 7,000 per month, it is important to ascertain whether this amount refers to his basic salary or his gross salary. If it is his basic salary, he will be eligible for exemption from contributing to the Provident Fund by filling out Form 11. Please let me know if you require further clarification.
Regards,
Ravi
From India, Mumbai
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According to the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the definition of an excluded member is as follows: "an employee whose pay, at the time he is otherwise entitled to become a member of the fund, exceeds Rs. 6,500 per month." Based on this definition, we can exempt any employee from contributing to the Provident Fund if their pay surpasses this limit. Feel free to revert if you have any queries.
Regards,
Ravi
Hi Suni,
If your friend is receiving a salary of Rs. 7,000 per month, it is important to ascertain whether this amount refers to his basic salary or his gross salary. If it is his basic salary, he will be eligible for exemption from contributing to the Provident Fund by filling out Form 11. Please let me know if you require further clarification.
Regards,
Ravi
From India, Mumbai
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Dear Ravi,
This I already clarified with my friends in our RPFC Office. They say that an excluded employee means he never contributed to EPF. But here the query is regarding exemption of an enrolled employee.
For example: If there are 25 employees in an organization, out of which only 5 are within the ceiling limit. As per the Act, normally EPF is not applicable. For the total number, all employees are considered. However, deductions can be done on the 5 employees, treating the others as excluded employees.
Abbas.P.S
From India, Bangalore
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This I already clarified with my friends in our RPFC Office. They say that an excluded employee means he never contributed to EPF. But here the query is regarding exemption of an enrolled employee.
For example: If there are 25 employees in an organization, out of which only 5 are within the ceiling limit. As per the Act, normally EPF is not applicable. For the total number, all employees are considered. However, deductions can be done on the 5 employees, treating the others as excluded employees.
Abbas.P.S
From India, Bangalore
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For the purpose of coverage under the EPF and MP Act, 1952, the total number of employees is considered irrespective of their wages and limits. However, the payment of contributions shall be limited to the ₹6,500 norms or otherwise.
A company may be covered based on a staff of 20 employees, but it may only pay ₹7 monthly scheme administrative charges in the event there are no included employees.
Please feel free to ask for clarification on the subject matter.
Thanks and regards,
Prasiddh
[Phone Number Removed For Privacy Reasons]
From India, Pune
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A company may be covered based on a staff of 20 employees, but it may only pay ₹7 monthly scheme administrative charges in the event there are no included employees.
Please feel free to ask for clarification on the subject matter.
Thanks and regards,
Prasiddh
[Phone Number Removed For Privacy Reasons]
From India, Pune
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Provident Fund - Excluded Employee - Definition.pdf