Non Contribution Of Provident Fund By Employer .

it is policy of our company to stop the contribution in provident fund who got promoted. I got promoted by my company before two years and company stops the contribution in provident fund . If it is policy of our company and I know before the getting promoted , I have not any objection on my company. Matter is that i applied for home loan, where they questioning to my employer about reason for non contribution of provident fund . How i can tackle problem without harming my company.How can answer my employer to bank so that it will not create not any problem to my employer.

Dear Mohite Jitendra,
Those who registered with EPF has to continue with PF till end of their service. Promotion or enhancement of salary are not reason for discontinue. Contact the concerned Regional PF Commissioner's Office immediately.
Abbas.P.S

Dear Mohite Jitendra,
There is no policy to stop EPF contribution. If EPF contribution start from joining it will be till end of their service. only company can stop EPF contribution at the joining time if employees fill form -11 under PF act. Enhancement of salary Promotion are not reason for discontinue EPF contribution, Please Contact your Regional PF Commissioner....
Thanks
Kuldeep Rawat.

Dear Mohit,
An employer can not stop deducting PF of covered Employee irrespective of any hike in his / her salary. Of course, Employer can restrict the contribution to 12% of Rs 6500 and need not contribute 12% of hiked salary, but continued coverage is mandatory.
Kindly contact RPFC regarding the matter ASAP.

Internal Company Policy cannot overrule the statutory requirement of EPF, which is an obligation for companies under Factory Act.
Members are above right. And in addition to this, any employee who is working and are registered under EPF act which implies the deduction (Contribution) of EPF are being made on both Employee and Employer accounts by following the EPF rules, can’t stop the same by anyhow until employee leaves the organization/resign.
Second, it seems you need to speak to your employer/HR Personnel in this regard because I feel there is something not clear with you or say you are lacking with some information. And if company is running with such kind of policy, which is not possible, but if it is true which is against the rule laid down under “Factory Act” they must registered with EPF, else can experience some serious legal issues.
Still I would suggest you to speak to your HR personnel to get complete information in this regard first.

Dear Mohite, Apart from the patent illegality of your organisation, you can offer this explanation to the Bank that since your pay has crossed Rs.6,500/- mark, you have ceased to be an employee as defined under the PF Act and hence there is no statutory need for your coverage. This is not a sound argument, but that is all that can be thought of.
KK

Dear Mohite
Even if your pay exceeds Rs.6500/- on promotion, you need to continue to be member of the P.F and do not cease to be an employee and shall continue to contribute to P.F.
B.Saikumar
Mumbai

Are you talking about EPF or some other Provident Fund? Please clarify. It is not possible to discontinue contribution on promotion, under the EPF Act/Rules.

Dear Mohitejitendra,
Let me first appreciate your attitude towards company. You do not wish to have any problem to your employer. This means you also know that the policy of company is wrong.
Also I appreciate the response by members. All the members expressed very correctly.
While supporting the views of Shri. Anil Arora ji, our Board Moderator, I suggest you should make a representation to the bank that you are an 'excluded employee' with in the meaning under EPF & MP Act and therefore no PF is deducted. Shri. Kknair also has suggested this.
All the best.

In case you were the member of EPF Scheme prior to promotion,your company can not stop deduction of PF contribution after promotion being Statutory provision, however ,it can restrict the contribution upto Rs.6500
In case the advance is being sought from EPF office, they have all the rights to enquire about non contribution and to take action as per provisions under the Act for such a default.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>