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Ramesh Dere (Compliances)     13 July 2011

Contribution to P.F. for opted Out employee opting P.F.

Hi All,

P.F. is applicable to an IT company from Pune from 2005.

Some of the employee at the time of joining the employment opted out of P.F. as their basic salary was more than Rs.6,500/-

Company made an internal policy in 2008, which force its entire employee to be compulsorily member of P.F.

Now whether company has to deduct Employee share & pay the P.F.  from the date exempted employee became member or from the date of joining of such exempted employee.

Company calculate P.F. contribution on thresh hold limit of Rs.6,500/-  of Basic for deducting  P.F. @ 12%

 

Please site decided case law if any.

Thanks in advance



Learning

 2 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     14 July 2011

As there is no legal compulsion to provide the EPF benefit to such exempted employees and when they are either voluntarily or due to compulsion of policy have to become member of scheme then it is also voluntary. There is no rule forcing such employees to get deposited their deduction and contribution of employer from the date of joining. It is just a mutual understading.

Sudhir Kumar, Advocate (Advocate)     18 November 2011

Company has a right of not providing PF benefits to the employees having salary above Rs 6500/-.  It is not the employee who has right to deny himself of this benefit. PF authoritiries cannot compel him to deposit PF of employees paid above rs 6500 but they have no right to refuse acceptance.  If company decides to incur this additional liability on itself. None can stop it


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