Hi,
Is it mandatory to make contributions towards EPF? Is it effect the new wage codes ?
How can a employer or employee opt out of this contribution?
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Hi
If an employee’s basic salary (basic wages +, DA[retaining allowance (if any)+ Special allowance) at the time of joining the organisation is more than Rs. 15,000/-, such employee can be excluded from EPF Scheme. However, if the employee was already an EPF member in any previous organisations where he or she worked before, you cannot exempt that employee from EPF and he/she should be added to EPF irrespective of the basic salary limit. But in such cases you have an option to limit employer contribution to the extent of the wage ceiling limits of Rs.15,000/-. (i.e Employer contribution of Rs.1800).
However it’s always recommended to add employees to EPF since it is one of the best social security benefits. Especially during covid time, EPF advance option, other benefits schemes and EDLI insurance of 7lakh to the family members of deceased epf members was great support.
Regards
Rafi- HR Head Awign
https://www.linkedin.com/in/muhammedrafiap/
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For trainee and apprenticeship we can excluded from epf.
Raghu
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Apprentice Act 1961 covers trainees engaged by an establishment under Designated Trades or Optional Trades. All such “apprentices” , engaged as per Apprentice Act, are not covered by EPF Act
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