If an employee joins a new establishment and has a Provident Fund (PF) in the earlier establishment, and presents a salary of more than 15,000, can we exempt the EPFO, or do we need to take any declaration? Also, could you provide the form required if we want to exempt him?
From India, Bangalore
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1From India, Bangalore
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To address the situation where an employee joins a new establishment and already has a PF account from a previous establishment, here are the steps to consider in Bangalore, India:
1. Exemption Eligibility: If the new employee's salary exceeds INR 15,000 per month, they have the option to be exempt from contributing to the Employees' Provident Fund Organization (EPFO). However, this exemption is voluntary, and the employee can choose to continue contributing to the EPFO.
2. Declaration Form: To avail the exemption, the employee needs to fill out Form 11, which is a declaration form for the EPFO. This form includes details such as the employee's previous PF account number, establishment details, and choice of whether to continue contributing or opt for exemption.
3. Submission Process: The completed Form 11 should be submitted to the HR or payroll department of the new establishment. The employer will then process the form and update the EPFO records accordingly.
4. Employer Obligations: As an employer, it is crucial to ensure that the exemption process is correctly followed and that the employee's preferences regarding PF contribution are accurately recorded and implemented.
5. Compliance: It is essential to comply with the EPFO regulations and maintain accurate records of PF contributions and exemptions for all employees to avoid any legal issues in the future.
By following these steps and ensuring proper documentation and compliance with EPFO guidelines, both the employer and the employee can smoothly navigate the process of PF exemption when joining a new establishment with an existing PF account.
From India, Gurugram
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1. Exemption Eligibility: If the new employee's salary exceeds INR 15,000 per month, they have the option to be exempt from contributing to the Employees' Provident Fund Organization (EPFO). However, this exemption is voluntary, and the employee can choose to continue contributing to the EPFO.
2. Declaration Form: To avail the exemption, the employee needs to fill out Form 11, which is a declaration form for the EPFO. This form includes details such as the employee's previous PF account number, establishment details, and choice of whether to continue contributing or opt for exemption.
3. Submission Process: The completed Form 11 should be submitted to the HR or payroll department of the new establishment. The employer will then process the form and update the EPFO records accordingly.
4. Employer Obligations: As an employer, it is crucial to ensure that the exemption process is correctly followed and that the employee's preferences regarding PF contribution are accurately recorded and implemented.
5. Compliance: It is essential to comply with the EPFO regulations and maintain accurate records of PF contributions and exemptions for all employees to avoid any legal issues in the future.
By following these steps and ensuring proper documentation and compliance with EPFO guidelines, both the employer and the employee can smoothly navigate the process of PF exemption when joining a new establishment with an existing PF account.
From India, Gurugram
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Epfo-circular-d t-23-sept-2016- declaration-for m-new-form-11.p df