Hi Team,
I am working with a BPO company in Delhi as an HR Executive for the past 3 years, and I have some confusion about what to do when an employee does not want to opt for PF deduction from their salary. Which form should we use in this case? Do we need the employee to sign any declaration form?
Thank you.
From India, Hyderabad
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2I am working with a BPO company in Delhi as an HR Executive for the past 3 years, and I have some confusion about what to do when an employee does not want to opt for PF deduction from their salary. Which form should we use in this case? Do we need the employee to sign any declaration form?
Thank you.
From India, Hyderabad
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If an employee is covered by PF Act,he can not opt out of PF.It is a statutory obligation but not contractual one. b.saikumar HR & Labour Law Advisor Navi Mumbai
From India, Mumbai
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From India, Mumbai
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Hi,
The employee has an exemption, but some conditions will apply.
1. Please inform me of the employee's basic salary. If it is more than 15000, then it's optional.
2. In the previous company, he had availed of this benefit. If yes, then he should take the PF benefit, as he cannot be exempted.
Regards,
Dinesh Kumar
From India, Tiruchi
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The employee has an exemption, but some conditions will apply.
1. Please inform me of the employee's basic salary. If it is more than 15000, then it's optional.
2. In the previous company, he had availed of this benefit. If yes, then he should take the PF benefit, as he cannot be exempted.
Regards,
Dinesh Kumar
From India, Tiruchi
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Hello Kavi,
Coverage under the EPF Act is not by choice; it is mandatory. There are only two exceptions: firstly, if the salary is beyond the limit prescribed under the Act, and secondly, if the employer is exempted because the employer has their own PF scheme that is more beneficial to employees. In all other cases, the employee has to be covered under the Act.
Vibhakar Ramtirthkar
Email: snehvibha@yahoo.com
Phone: 9371001906
From India, Pune
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Coverage under the EPF Act is not by choice; it is mandatory. There are only two exceptions: firstly, if the salary is beyond the limit prescribed under the Act, and secondly, if the employer is exempted because the employer has their own PF scheme that is more beneficial to employees. In all other cases, the employee has to be covered under the Act.
Vibhakar Ramtirthkar
Email: snehvibha@yahoo.com
Phone: 9371001906
From India, Pune
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(Fact Checked)-[The user's reply contains accurate information regarding the coverage under the EPF Act. It correctly states that coverage is mandatory except in specific cases like exceeding the salary limit or having a more beneficial PF scheme. Therefore, the user reply is correct.] (1 Acknowledge point)
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Dear Vibhakar Ramtirthkar ji,
According to you, if the salary of an employee is beyond the limit prescribed under the Act, he can be exempted from EPF. I have a question for you: suppose my salary is beyond such a limit prescribed, but I am a member of EPF. Will you still exempt me from EPF?
Thank you.
From India, Mumbai
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According to you, if the salary of an employee is beyond the limit prescribed under the Act, he can be exempted from EPF. I have a question for you: suppose my salary is beyond such a limit prescribed, but I am a member of EPF. Will you still exempt me from EPF?
Thank you.
From India, Mumbai
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Dear Korgaonkar,
If you are already a member of EPF, the question is, are you continuing with the same employer? If yes, then the employer might continue to cover you under EPF, but only up to the maximum salary limit. You may contribute more, but the employer will not contribute anything above the wage limit.
If you leave that job and join a new employer where your salary exceeds the limit set by the Act, you will be exempt. In such cases, the employer may have a different superannuation scheme, as these employees are considered top-tier and are few in number.
Vibhakar.
From India, Pune
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If you are already a member of EPF, the question is, are you continuing with the same employer? If yes, then the employer might continue to cover you under EPF, but only up to the maximum salary limit. You may contribute more, but the employer will not contribute anything above the wage limit.
If you leave that job and join a new employer where your salary exceeds the limit set by the Act, you will be exempt. In such cases, the employer may have a different superannuation scheme, as these employees are considered top-tier and are few in number.
Vibhakar.
From India, Pune
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Employee Benefits.doc
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(Fact Checked)-The user reply is correct. Employees covered by the PF Act cannot opt out of PF as it is a statutory obligation, not contractual. (1 Acknowledge point)