Dear Professionals, Please let me know if an employee whose basic salary is less than Rs. 15,000 per month does not want EPF deducted from their salary, meaning they do not wish to save money through EPF. Can the employer provide them an exemption by taking a declaration from the employee in question?
Thanks,
Dhananjay.
From India, Delhi
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3Thanks,
Dhananjay.
From India, Delhi
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According to Para 2 Clause (f), "Excluded Employee" means an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund or an employee whose pay, at the time he is otherwise entitled to become a member of the Fund, exceeds [Fifteen Thousand rupees] per month. In your case, he should be a member, not have the exemption.
From India, Mumbai
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From India, Mumbai
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Hi, If more than 15,000 as freshly joining company that instant have the exemption, if they are earlier member of PF fund then No exemption either basic is more than or less than.
From India, Mumbai
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From India, Mumbai
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Dear Aditya, The question is for those whose Basic salary is less than Rs. 15000 but they don’t want to get the money deducted from his salary. Can they be given the exemption.....
From India, Delhi
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From India, Delhi
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An employer does not have discretionary powers to exclude any employees who are otherwise covered by the Act on a selective basis or en masse for any reason whatsoever. On the contrary, the employer can only include those who are not covered by the Act at their discretion. Additionally, the employer can contribute both the employees' and employer's contributions if the employee is not willing to contribute (as in the query) if they don't mind it.
Regards
From India, Bangalore
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Regards
From India, Bangalore
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It is not an optional scheme based on a declaration or undertaking given by the employee. If a person is earning less than Rs. 15,000 per month as BASIC + DA, they should be a member of the scheme.
Regards,
P. K. Sharma
From India, Delhi
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Regards,
P. K. Sharma
From India, Delhi
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Thank you to all of you, especially to Mr. P. K. Sharma, who understood my point exactly. In a nutshell, the employer is bound to create an EPF account for all employees covered by the Act.
Thanks again.
Regards,
Dhananjay.
From India, Delhi
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Thanks again.
Regards,
Dhananjay.
From India, Delhi
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The correct position as per the law is that an employee can submit Form 11 and opt out of the PF scheme. The rider here is that they should not have been a member of the scheme at any time. Accordingly, a new employee starting their career can submit this form and choose not to participate in PF. For all others, it is compulsory by law to enroll in the PF scheme if their earnings from Basic & D.A or Spl Allowance are less than 15,000.
From India, Mumbai
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From India, Mumbai
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