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Originally Posted by Samurai Only a company with less than 20 employees can opt out of PF. |
A company with more than 20 employees can also opt out from EPF, please read below from the EPFO site, the link to which is available in my previous post on page 1.
Exemptions under the Schemes Provident Fund
An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.
Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
Pension Scheme
Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS ’95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.
There is no provision for exemption of individuals or for class of employees.
EDLI Scheme
The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.
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Originally Posted by kpbhatt I was forced to join a startup when i lost my job in Mar 09. This startup is more than 70 employees in strength. I tried to get the employees to understand the importance of having a PF in their salary. however the employees or HR are unwilling to let go of the PF amount from their current salary. The senior mgmt is not putting its foot down and making it mandatory for everyone. I have PF accrued for over 10 yrs and I am being forced to withdraw it for want of better options. |
@kpbhatt
Instead of letting your EPF of 10 years go to waste, you can open a PPF(Public Provident Fund) account.
This can be done at any Nationalized bank and also your local Post Office. Though it is better done at the bank. Your previous employer will issue a letter verifying that you had an EPF account with them and a statement of accounts and the entire proceeds with the accrued benefits will be carried forward to your new PPF. You can deposit monies to this account at your convenience subject to the maximum of INR70,000/- every year and continue to enjoy all the benefits.
At a later time if you were to switch jobs to a company with PPF you can do a reverse transfer with all benefits.