Confusion in Applicability of PF in an Establishment
10 months ago
Confusion in Applicability of PF in an Establishment
A.Dear Client,
The Employees Provident Funds and Miscellaneous Provisions Act, 1952 is applicable to every establishment which employs 20 (twenty) or more persons and every such employer shall be required to be registered under the Act . It is compulsory for all employees who draw a basic salary of less than Rs 15,000 per month to become members of the EPF. A registered employee cannot opt-out of the EPF scheme once he becomes a scheme member. The Central Government has amended the ceiling for contributions under the EPF Act, 1952, and the EPF Scheme 1952 from Rs. 6,500 to Rs. 15,000, with effect from 1 September 2014. The contribution of an employee towards EPF is calculated @12% of basic pay and DA and the same contribution is deposited by the Employer towards EPF A/c. An employee can make an enhanced contribution up to a maximum of 100% of the basic salary to the voluntary provident fund. As per the rules, in EPF, an employee whose 'pay' is more than Rs 15,000 a month at the time of joining, is not eligible and is called a non-eligible employee and it is not mandatory for him to become a member of the EPF, although he can still register for EPF Scheme with the consent of his employer and approval from the Assistant PF Commissioner concerned.
The Employees Provident Funds and Miscellaneous Provisions Act, 1952 is applicable to every establishment which employs 20 (twenty) or more persons and every such employer shall be required to be registered under the Act . It is compulsory for all employees who draw a basic salary of less than Rs 15,000 per month to become members of the EPF. A registered employee cannot opt-out of the EPF scheme once he becomes a scheme member. The Central Government has amended the ceiling for contributions under the EPF Act, 1952, and the EPF Scheme 1952 from Rs. 6,500 to Rs. 15,000, with effect from 1 September 2014. The contribution of an employee towards EPF is calculated @12% of basic pay and DA and the same contribution is deposited by the Employer towards EPF A/c. An employee can make an enhanced contribution up to a maximum of 100% of the basic salary to the voluntary provident fund. As per the rules, in EPF, an employee whose 'pay' is more than Rs 15,000 a month at the time of joining, is not eligible and is called a non-eligible employee and it is not mandatory for him to become a member of the EPF, although he can still register for EPF Scheme with the consent of his employer and approval from the Assistant PF Commissioner concerned.
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Anonymous
Replied 10 months ago
Thanks a lot Sir/Madam.
A.Dear client,
Registration for PF is compulsory for
Any factory or manufacturing plant commercial employs twenty or more workers and staff.
Any establishment with at least 20 or more professionals during the previous year.
Every employee whose monthly salary is less than ₹ 15,000.
Registration for PF is compulsory for
Any factory or manufacturing plant commercial employs twenty or more workers and staff.
Any establishment with at least 20 or more professionals during the previous year.
Every employee whose monthly salary is less than ₹ 15,000.
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