Is the employer bound to pay his share of PF if the basic salary of an emplloyee exceeds 6500/- p.m.? What else, if it exceeds 6500/-p.m?
From India, New Delhi
2From India, New Delhi
Dear friends,
If the employee already registered with EPF, the PF contribution has to be continued even if the salary exceeds Rs. 6500/-. But the statutory obligation on such contributions will be restricted to Rs. 6500. If employer and employee wish the contribution can be on actual salary.
Abbas.P.S
From India, Bangalore
If the employee already registered with EPF, the PF contribution has to be continued even if the salary exceeds Rs. 6500/-. But the statutory obligation on such contributions will be restricted to Rs. 6500. If employer and employee wish the contribution can be on actual salary.
Abbas.P.S
From India, Bangalore
Dear Abbas i want to know one question, if an employee basic salary is 6500/- above by the time of joining is it obligatory to deduct the PF? Kindregards Gowri sankara rao
From India, Visakhapatnam
From India, Visakhapatnam
Dear Abbas, If basic is less than 6500 then which figure should consider for PF calculation. Sushant
From Hong Kong
From Hong Kong
hy frnd thats not the question the is if any employees salary is more than 6.5 at the time of joining and he wants that his epf should be deducted in that case the employer is bound to pay his share of epf contribution e.i. 8.33 EPS and 3.67 in EPF please clarify it to me
From India, New Delhi
From India, New Delhi
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is applicable to every establishment wherein 20 or more employees are employed. Under Section 5 of the Act, the Central Government by Notification may frame a Scheme called the Employees Provident Fund Scheme for the establishment of Provident Fund under the above-mentioned Act.
According to Para 2(f) (i) of the Employees Provident Fund Scheme, an employee whose pay (Basic Wages with Dearness Allowance, retaining allowance and cash value of food concessions admissible thereon) at the time he is otherwise entitled to become a member of the fund exceeds Rs. 6,500/- per month is an “excluded employee” and is not required to be the member of the fund. Otherwise an employee who does not come within the meaning of “excluded employee” shall be entitled to and required to be member of the fund as per Para 26 (1) (a) of the Employees Provident Fund Scheme.
As per para 26 (6) – of the Employees’ Provident Funds Scheme, an Officer not below the rank of an Assistant Provident Fund Commissioner may on the joint request in writing of any employee of the factory or other establishment to which this Scheme applies and his employer enroll such employee as a member or allow him to contribute on more than Rs. 6,500/- of his pay per month if he is already a member with the Funds and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund, provided that the employer gives a undertaking in writing that he shall pay the administrative charges payable and comply with all statutory provisions in respect of such employee.
In the light of the above provisions, “excluded employees” under para 2(f)(i) of the Employees Provident Fund Scheme are not required to be members of the Fund and thereby pay PF contribution. Therefore, an establishment can have employees in respect of whom the Company pays Provident Fund Contribution and for those that the Company doesn’t. Finally, no separate declaration from an employee, whose salary is over and above Rs 6,500/-, needs to be taken from him for not paying contribution towards Provident Fund.
From India, Mumbai
According to Para 2(f) (i) of the Employees Provident Fund Scheme, an employee whose pay (Basic Wages with Dearness Allowance, retaining allowance and cash value of food concessions admissible thereon) at the time he is otherwise entitled to become a member of the fund exceeds Rs. 6,500/- per month is an “excluded employee” and is not required to be the member of the fund. Otherwise an employee who does not come within the meaning of “excluded employee” shall be entitled to and required to be member of the fund as per Para 26 (1) (a) of the Employees Provident Fund Scheme.
As per para 26 (6) – of the Employees’ Provident Funds Scheme, an Officer not below the rank of an Assistant Provident Fund Commissioner may on the joint request in writing of any employee of the factory or other establishment to which this Scheme applies and his employer enroll such employee as a member or allow him to contribute on more than Rs. 6,500/- of his pay per month if he is already a member with the Funds and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund, provided that the employer gives a undertaking in writing that he shall pay the administrative charges payable and comply with all statutory provisions in respect of such employee.
In the light of the above provisions, “excluded employees” under para 2(f)(i) of the Employees Provident Fund Scheme are not required to be members of the Fund and thereby pay PF contribution. Therefore, an establishment can have employees in respect of whom the Company pays Provident Fund Contribution and for those that the Company doesn’t. Finally, no separate declaration from an employee, whose salary is over and above Rs 6,500/-, needs to be taken from him for not paying contribution towards Provident Fund.
From India, Mumbai
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