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abhijit majumder (practicing company secretary)     25 July 2022

Applicability of employees provident fund act 1952

To

The  Respected fellow experts

Does Employees Provident Fund Act 1952 applicable to every employee of a organization/

I am asking this because,  Employees Provident Fund Scheme states  :

Those employees whose salary exceeds Rs.15000 per month are considered as "excluded employees".

Regards

Abhijit



Learning

 2 Replies

Mahi Manchanda   26 July 2022

Hi,

Certain employees can opt out of the EPF scheme. There are certain exemptions under the act for this.

If an employee wants to opt out of PF, he can fill out Form 11 at the time of joining his first job. He will also have to present a letter addressing the employer stating that he wishes to opt out of the Provident Fund Scheme. However, the option to opt out will cease to exist in the event of making even a single contribution to PF.

1. When a person is convicted at one trial of two or more offences, the Court may, taking into consideration the section 71 of the Indian Penal Codec, sentence him for such offences, to the several punishments, prescribed therefore which such Court is competent to inflict; such punishments when consisting of imprisonment to commence the one after the expiration of the other in such order as the Court may direct, unless the Court directs that such punishments shall run concurrently.

An employee can opt out of the provident fund if criteria are met, some of them are,

  1. If he/she is a first-time employee i.e., at the time of joining the first job
  2. The employee has his or her Basic + DA (PF Wages) more than Rs.15000/- per month
  3. At the time of changing a job, only when he/she does not have an existing PF account number
  4. If they get a job abroad, they can opt out of the Indian EPF scheme 
  5. Employees with less than 15,000 salary
  6. Organisations with less than 20 people are not forced to carry out the scheme. etc

I hope this helps.

Have a good day.

abhijit majumder (practicing company secretary)     27 July 2022

Thak U 

For elaborately clarify the matter.

Regards

Abhijit


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