PF contribution

Querist : Anonymous (Querist) 28 October 2009 This query is : Resolved
Situation: Can an employee* (high end pay bracket) opt not to have PF deductions? Or in other words does the employer has the flexibility to devise pay packages for employees without PF contribution.

*The employees are in a pay bracket of around 20 lakhs and above

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Raj Kumar Makkad (Expert) 28 October 2009
Definitely. As EPF & MP Act, 1952 prescribes a limit of coverage and such an amployee is already in the above limit so employer cannot be made ready for that but if any specific agreement has been entered providing this facility then employer cannot resile from the terms of the agreement and in that event employee is entitled.

Querist : Anonymous (Querist) 30 October 2009
Thank you Sir.

A K CHANDOK (Expert) 04 November 2009
Though the upper limit is Rs. 6500 but if the new employee having higher salary but was already a member of E.P.F.IN HIS EARLIER EMPLOYMENT, in such case he will remain member of EPF.

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