I read your posts but still have a doubt.
In one instance you have stated that I can opt out of epf with a new company even if I had epf with my previous company. (your response dated April 7, 2016 at 1:50 PM to Naveen in the Employee Provident Fund (EPF)-Changed rules from 1st Sept 2014 post)
Later you have stated that one can opt out only the first time.
My question is this: I had opted in for epf with a previous employer. I changed my employment 1 year ago and this company did not offer epf at all, although there were more than 20 employees.
Now, I am told that:
- Since I had epf earlier, the company will have to deduct epf and I cannot opt out. Is this true?
- The company will have to deduct the epf contribution in retrospect i.e. for the past 1 year from my salary i.e. Rs. 43,200 (that’s as good as my entire month’s salary.) Can the company do that or does the company have to bear the retrospect amount?
- The company is otherwise offering to change my status from employee to contractor. What are the repercussions and benefits of this?
What should I do? Please help at the earliest as I am at a loss here…
Please remember the points I explained as below.
You can opt out of EPF when your salary (basic+DA) is more than or equal to Rs.15,000 a month. This is purely your rights to opt out but not your employer.
You can opt out only when you join a new company and at an initial stage itself you have to select the option to opt out. If you became a member of EPF within that employer, then at a later stage you can’t opt out UNDER THAT EMPLOYER.
Your past membership of EPF does not matter when you join a new organization. You still have an option to choose to opt out.
Hope I cleared your doubts.
Thanks for your response. That does answer my first question. Problem is my employer is refusing to accept and says that he will have to deduct epf becase I had it earlier and that too in retrospect.
Can he do that? And that too entirely from my salary? Or does that employer have to pay out of his pocket…at least half the amount i.e. the employer’s contribution?
Thanks a lot!
Let him show the rules for his claims. Never accept blindly. Also, both contributions can’t be from your end.
One last question hopefully 🙂
What is the procedure to opt out of PF i.e. is there a specific form that I have to fill to opt out? Where can i get that form?