Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Epf option

Shivani (Learner) (1881 Points)

04 June 2016

Dear Friends

A new employee Mr. X joins ABC Ltd. His basic salary + DA exceeds Rs. 15000.

ABC Ltd. is registered with EPFO.

Now X has option to join EPF or not join it.

My question is there a time limit within which X need to exerciese his option.

What if X first says he doesnt want to join and then later wish to join?

Is he allowed?

regards

Reply
Follow
Share

3 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 08 June 2016

normaly the option is to be selected well before the 1st salary receipt,

However there is no bar to join on a later date, but the employee has to make request to employer in writing that he wish to contribute in EPF, and also an undertaking that if department ask to pay the contribution of arrears, then he will allow the employer to deduct the same and deposit with EPFO

( normally EPF does not ask to make the contrubution deposit of prior periods, but often its found that employees furnish misdeclaration that employer insisted not to opt for)

Upgrade to CAclubindia Pro. Subscribe Now!

Shivani (Learner) (1881 Points)
Replied 12 June 2016

Dear US Sharma

in case of arrears employee needs to give declaration to authorise employer to deduct arrears from salary.

but will this deduction of arrears be in regard to employee contribution only or employer contribution only or both?

regards

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 13 June 2016

Originally posted by : Spider
	Dear US Sharma in case of arrears employee needs to give declaration to authorise employer to deduct arrears from salary. but will this deduction of arrears be in regard to employee contribution only or employer contribution only or both? regards