At the time of appointment if the employee's basic salary is more than Rs. 6500/- p.m. then he can fill up Form No. 11 for getting exemption but once he has become the member of the PF it cannot be discontinued.
Regards
Rajendra Bhavsar
Manager (HR & Admn)
Ashoka Buildcon Limited
From India, Mumbai
34Regards
Rajendra Bhavsar
Manager (HR & Admn)
Ashoka Buildcon Limited
From India, Mumbai
Can any body send me format for EPF Exemption & existing employee wages can be reduced in Provident fund account. Please send the EPF Act details if any thing is thier for reducing the existing employee basic wage.
I will be waiting for your reply.
From India, Hyderabad
I will be waiting for your reply.
From India, Hyderabad
Dear Satish,
Under the provisions of the EPF & MP Act-1952, an establishment can seek exemption from the operations of any of the three scheme provided under the Act viz. Provident Fund, Pension and DLI. However, the foremost requirement is that the establishment concerned should have some more beneficial scheme in place for its employees before it can seek exemption. In other words, if your are seeking exemption from the Provident Fund Scheme, you need to have a scheme where the benefits available under your EPF Scheme are more favorable than those available under the EPF Scheme of EPF & MP Act-1952. Therefore, first of all you need to have the more beneficial scheme in operations only then you can seek exemption. Many big companies having employees strength sometimes in hundreds or sometimes in thousands seeks exemption from the EPF and DLI Scheme but not the Pension Scheme. Because in PF Scheme they can provide more benefits by managing the Investment better while in DLI Scheme, they can provide more benefits by taking a DLI Policy from any Insurance Company where the benefits are same irrespective of the employees EPF balance/length of service. But I have not in my almost 16 years of professional life seen any company which is having the exemption from the operation of the Pension Scheme because the amount/scale of benefits available under the Pension Scheme of EPF & MP Act is simply unbeatable. If anyone has some other viewpoint please share.
Further, to your query regarding the reduction of basic wages. Under the EPF Act, Section-12, an employer cannot reduce the Wages of an employee, whether directly or indirectly, in order only to reduce his/her liability under the Act or reduce total quantum of benefits in the nature of old age pension, gratuity to which the employee is entitled under the terms of his employment express or implied. A plain reading of this Section'd imply that the Basic Wages simply cannot be reduced. But I believe that the escape route is also hidden in the section itself. A close reading of the Section'd reveal that (I may be wrong if so please correct me) if the reduction is simply not for a particular employee without his consent then that cannot be done but when this is done as a matter of Punishment due to the result of an enquiry or where the same is done across the board for all categories of employee after an agreement is reached between the Management and Employees wherein it was agreed between the two that there are reasons sufficient enough to decrease the cost than to shut down/reduce the strength of the establishment in order to survive. Then perhaps there should not be any problem in reducing the wages. All the learned members of this forum are welcome to post their comments on this issue, with necessary judgments/orders, if any, for the benefits of the community.
From India, Delhi
Under the provisions of the EPF & MP Act-1952, an establishment can seek exemption from the operations of any of the three scheme provided under the Act viz. Provident Fund, Pension and DLI. However, the foremost requirement is that the establishment concerned should have some more beneficial scheme in place for its employees before it can seek exemption. In other words, if your are seeking exemption from the Provident Fund Scheme, you need to have a scheme where the benefits available under your EPF Scheme are more favorable than those available under the EPF Scheme of EPF & MP Act-1952. Therefore, first of all you need to have the more beneficial scheme in operations only then you can seek exemption. Many big companies having employees strength sometimes in hundreds or sometimes in thousands seeks exemption from the EPF and DLI Scheme but not the Pension Scheme. Because in PF Scheme they can provide more benefits by managing the Investment better while in DLI Scheme, they can provide more benefits by taking a DLI Policy from any Insurance Company where the benefits are same irrespective of the employees EPF balance/length of service. But I have not in my almost 16 years of professional life seen any company which is having the exemption from the operation of the Pension Scheme because the amount/scale of benefits available under the Pension Scheme of EPF & MP Act is simply unbeatable. If anyone has some other viewpoint please share.
Further, to your query regarding the reduction of basic wages. Under the EPF Act, Section-12, an employer cannot reduce the Wages of an employee, whether directly or indirectly, in order only to reduce his/her liability under the Act or reduce total quantum of benefits in the nature of old age pension, gratuity to which the employee is entitled under the terms of his employment express or implied. A plain reading of this Section'd imply that the Basic Wages simply cannot be reduced. But I believe that the escape route is also hidden in the section itself. A close reading of the Section'd reveal that (I may be wrong if so please correct me) if the reduction is simply not for a particular employee without his consent then that cannot be done but when this is done as a matter of Punishment due to the result of an enquiry or where the same is done across the board for all categories of employee after an agreement is reached between the Management and Employees wherein it was agreed between the two that there are reasons sufficient enough to decrease the cost than to shut down/reduce the strength of the establishment in order to survive. Then perhaps there should not be any problem in reducing the wages. All the learned members of this forum are welcome to post their comments on this issue, with necessary judgments/orders, if any, for the benefits of the community.
From India, Delhi
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