Provident fund

This query is : Resolved

Ramana Rao (Querist)
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09 October 2012 an employee resigned from an organization
and joined 2 months back in the same organization.
earlier he has been under the provident fund provision.
after rejoining he got new appointment letter
and as his basic salary is more than rs 6500/-per month,he does not want provident
fund provision
can he do so?
earlier also he was getting more than rs 6500/-per month as basic salary

U S Sharma

U S Sharma (Expert)
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09 October 2012 if the appointment is fresh then its on company to cover or not.
situation 1............there are 20+ subscribers in company .......in such situation he may exempt you.
situation 2............ there are 20+ employees but subscribers are less than 20............here he will face heat if he exempt.

in 2nd situation, you may opt for PF on total salary or 6500 ceiling, as u wish.

generally if the gap period is less than 6 months they show the period as "leave without pay" and continue the old status of employee.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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09 October 2012 It is an obligation on the part of Employer to follow the PF regulations and provisions otherwise Employer is to face the consequences.

The option is left with employer but not to employee.
The employer has to take a call on this case.

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