EPF & MP ACT
Querist :
Anonymous
(Querist) 20 August 2010
This query is : Resolved
Dear Sir,
A company is deducting and contributing its contribution to the department for the employee whose salary is less than Rs 6500 per month.
The question is can a company give an option to the employee above 6500 pm salary whether to opt or not to opt the scheme under the EPF & MP Act.
Further if an employee is getting the salary less than 6500/- and later if his salary exceeds Rs 6500, i.e.previously he is a covered emmployee now later can he opt for being an exempted employee since he will be getting the salary above 6500/-
Many thanks in advance.
Regards,
A K CHANDOK
(Expert) 01 September 2010
The answer to the first query is Yes. one can become a member of EPF if both agree and employer takes guarantee to pay Administrative and other charges as applicable under the act.
the employee will remain member even if his salary exceeds 6500 but employer can restrict the dedution upto 6500 unless mutually agreed upon.
