We know that it is mandatory for all employees with a basic salary less than ₹15,000 to register for the EPF. However, can employees earning more than ₹15,000 also join the EPF scheme with a fixed contribution of Rs. 1,800 per month (i.e., 12% of ₹15,000)?
From India, Kolkata
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9From India, Kolkata
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Hi, PF is compulsory for them also either they can contribute Rs.1800/- with restriction of Rs.15,000/- or can pay on actual basic salary basis also.
From India, Madras
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From India, Madras
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First of all, it has to be checked whether the employees drawing more than ₹15,000 salary per month are excluded employees or not. If they are excluded employees as per the EPFO Scheme, PF is not compulsory for them, but they may be members voluntarily. However, if they were earlier members of EPFO, then it is compulsory for PF membership if they have not closed their past PF account and are rejoining.
S K Bandyopadhyay (WB, HOWRAH) CEO-USD HR Solutions +91 98310 81531
USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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S K Bandyopadhyay (WB, HOWRAH) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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Sir, how to identify if they have closed their past PF account? According to my knowledge, a PF account can't be closed.
Also, can you elaborate on what you mean by rejoining so that I can understand the concept better.
From India, Bengaluru
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Also, can you elaborate on what you mean by rejoining so that I can understand the concept better.
From India, Bengaluru
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PF account can be closed. There are conditions when an employee was a member of EPFO and left the job after working for a few years for higher study, marriage, maternity matters, etc., and withdrew his/her accumulated amount from PF & EPS (if less than 10 years of service). If they later join any organization with a PF gross of more than 15,000/- per month (as of the current date), they will be considered an excluded employee.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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Sir, is the PF considered closed if the said employee just withdrew his PF amount and not his pension amount and have not worked for a PF firm since leaving the last PF firm.
There is an employee who wishes to join a firm that had PF because he worked for the same firm previously where PF was offered to him, but he now states that he has not been part of PF for many years after leaving the present firm. The firm is not sure whether he has closed his PF account, and the employee is not providing a clear answer on whether his account exists or is closed. The employee wishes to join the firm but does not want any PF/ESI deduction since he is joining at a salary of 25k.
The firm wants to hire the employee but does not want to incur additional expenditure on the employee. Can the firm just accept what the employee is saying at face value and hire them without PF/ESI deductions? Or should the firm be advised otherwise?
From India, Bengaluru
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There is an employee who wishes to join a firm that had PF because he worked for the same firm previously where PF was offered to him, but he now states that he has not been part of PF for many years after leaving the present firm. The firm is not sure whether he has closed his PF account, and the employee is not providing a clear answer on whether his account exists or is closed. The employee wishes to join the firm but does not want any PF/ESI deduction since he is joining at a salary of 25k.
The firm wants to hire the employee but does not want to incur additional expenditure on the employee. Can the firm just accept what the employee is saying at face value and hire them without PF/ESI deductions? Or should the firm be advised otherwise?
From India, Bengaluru
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