An employee have PF before but in his new company his Basic + DA does not fall in the PF slab i.e. 15000/- Is he eligible for PF? and is he can continue PF in his new company?
From India, Guwahati
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From India, Guwahati
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yes, as the employee is already subscriber of EPF the old UAN would be seeded by the new employer and contribution should be paid, wage ceiling does not effect the applicability
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It's not only that he 'can' continue having PF. It's that by law, he is required to continue his PF contributions if he has joined a new company that is covered under PF. The exemption is available only to those employees who do not have any PF account at the time of joining the new job.
From India, Mumbai
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From India, Mumbai
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@saswatabanerjee, would it be possible to provide the exact clause under which PF is mandated to be continued when a new employee joins at a salary above the threshold but had a PF account with his previous employment?
From India, Chennai
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From India, Chennai
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Dear Gautam, Please check if an employee had withdrawn his PF from earlier employer and joined you then you may need not to deduct any PF contribution for him.
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Please obtain EPF Form #11 (New) from the employee. If he is already covered under EPF & EPS, you have to continue to cover him even though his entry-level EPF wages are above the ceiling of Rs15,000. However, the employer has the right to restrict EPF/EPS contributions to the EPF ceiling of Rs15,000.
From India, New Delhi
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From India, New Delhi
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Dear FIMDIR, The provision is in the definition of an exempted employee in the PF scheme. A person who fulfills both conditions only will be exempt. So if he has existing accounts, then he fails clause (i). Then he cannot be exempt even if he has joined at a higher salary than specified in clause (ii).
Excluded employee
(i) An employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of paragraph 69;
(ii) An employee whose pay at the time he is otherwise entitled to become a member of the Fund exceeds [fifteen thousand rupees] per month;
From India, Mumbai
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Excluded employee
(i) An employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of paragraph 69;
(ii) An employee whose pay at the time he is otherwise entitled to become a member of the Fund exceeds [fifteen thousand rupees] per month;
From India, Mumbai
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PF Judgement - Bom HC - Temp employee.doc
HR-Policy-036 - Employee Transfer Policy - 11-10-2013.pdf