Can agree with that, EPFO FAQ says
” The employees who are drawing the basic wages and dearness allowance up to Rs.15, 000/- are alone eligible to become a member. He will continue to be a member even when his pay exceeds Rs.15, 000/-. However, his contribution to the Fund will be restricted to Rs.15, 000/-. The employer is also required to pay his matching contribution up to Rs.15, 000/-. Employees drawing more than Rs.15000/- can also become a member of EPF by giving option under para 26(6) of the EPF Scheme. The option has to be submitted to the EPF office within 6 months of joining of such member.”
So simple shortcut is pay 15001 INR and voila you are exempt from PF. In line with their hiring practices of hiring freshers, response by CS is most probably correct.
But definitely a questionable practice. Raises question about their employee policy. Also seems its a Key Man Driven Organization. Key Man is both Promoter and KMP, with ownership of IP held by Key Man in a distinct and separate entity.
| Subscribe To Our Free Newsletter |
