Dear All, Sir in our Organization Some Employees are not willing to deduct p.f from them.Are we have to Maintain any Signed Form From them Please Kindly Suggest me
From India, Bangalore
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1From India, Bangalore
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I hope you are aware that the basic salary limit for PF is ₹6,500. Individuals earning more than ₹6,500 as their basic salary are not eligible for PF. However, many companies display two basic salary components - one for PF and the other as the company basic.
If an employee's basic salary exceeds ₹6,500, we are not required to deduct PF from their accounts.
From India, Hyderabad
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If an employee's basic salary exceeds ₹6,500, we are not required to deduct PF from their accounts.
From India, Hyderabad
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Dear Ganesh, U can use form no 11 which i attached here for exemption from PF whose salary more than 6500.
From India, Mumbai
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From India, Mumbai
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If the Basic Pay (BP) is ₹6500/-, then Provident Fund (PF) is mandatory; otherwise, the employer commits an offense.
If the employees had a PF account earlier, then the continuation of PF is necessary even if the BP exceeds ₹6500/-.
If the employee never contributed to PF earlier and currently the BP exceeds ₹6500, then PF is optional.
From India, Chennai
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If the employees had a PF account earlier, then the continuation of PF is necessary even if the BP exceeds ₹6500/-.
If the employee never contributed to PF earlier and currently the BP exceeds ₹6500, then PF is optional.
From India, Chennai
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hi PF is mandatory. Now a days Clinets are asking pf paid challans while submitting the monthly bills. Hence council the employees about the PF Benenfits.
From India, Hyderabad
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From India, Hyderabad
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The Benefits of Provident Fund (PF) for Employees
PF is a very good investment option for employees, especially those in the lower scales, because they are yet to understand the value of investing discipline. They don't realize that the ₹780 or 12% they deposit is not only that but also the employer's contribution is added to it.
So the ₹780 actually is ₹780 + ₹780. A part of the employer's contribution goes to the Pension Fund, and in an eventuality, that pension amount can be claimed by surviving dependents. Moreover, on the PF part of the employee and PF deposit of the employer, the employee also earns interest rates of 8.5% (changes yearly). In case of a loan requirement for medical, hospitalization, marriage, or even insurance payments—some employees may not be able to get it from the bank—they can approach PF to give advance against their deposit (valid after 5-7 years).
It's a good thing for the employee to be invested in PF. I would request you to explain these benefits to them. If they are still not convinced, then PF gives the employee the option to restrict the contribution to ₹780/- only for those whose Basic+DA is more than ₹6500/-; alternatively, they can also claim exemption by filling form 11 (provided they aren't already enrolled in PF). Once enrolled, they need to continue. Also, as a precautionary documentation measure, I would suggest collecting a letter from the employee with their request (i.e., they wish to limit their contribution to ₹780/- or they wish to claim exemption from PF since they haven't been enrolled earlier and are above the limit).
Warm Regards,
Deena Jagasia
From India, Mumbai
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PF is a very good investment option for employees, especially those in the lower scales, because they are yet to understand the value of investing discipline. They don't realize that the ₹780 or 12% they deposit is not only that but also the employer's contribution is added to it.
So the ₹780 actually is ₹780 + ₹780. A part of the employer's contribution goes to the Pension Fund, and in an eventuality, that pension amount can be claimed by surviving dependents. Moreover, on the PF part of the employee and PF deposit of the employer, the employee also earns interest rates of 8.5% (changes yearly). In case of a loan requirement for medical, hospitalization, marriage, or even insurance payments—some employees may not be able to get it from the bank—they can approach PF to give advance against their deposit (valid after 5-7 years).
It's a good thing for the employee to be invested in PF. I would request you to explain these benefits to them. If they are still not convinced, then PF gives the employee the option to restrict the contribution to ₹780/- only for those whose Basic+DA is more than ₹6500/-; alternatively, they can also claim exemption by filling form 11 (provided they aren't already enrolled in PF). Once enrolled, they need to continue. Also, as a precautionary documentation measure, I would suggest collecting a letter from the employee with their request (i.e., they wish to limit their contribution to ₹780/- or they wish to claim exemption from PF since they haven't been enrolled earlier and are above the limit).
Warm Regards,
Deena Jagasia
From India, Mumbai
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hi all If employee is not willing to deduct the PF. It is not employee choice, they have to accept the conditions of the Company / Organisation. So it is mandatory.
From India, Hyderabad
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From India, Hyderabad
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manoj is correct , once you are a member u have to join read the exemptions on form 11 they are self explanatory
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If an employee is drawing more than Rs. 6500/- as basic salary and does not willingly contribute to the Provident Fund (PF), is it mandatory for the employer to contribute to his account equivalent to Rs. 6500/-, or should the employer also not contribute to the fund?
From India, Chennai
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From India, Chennai
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Provident Fund - Excluded Employee - Definition.pdf
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