what if the employee is not willing to join EPF Act, in covered establishment.?

Answer 1

Employees' Provident Funds and Miscellaneous Provisions Act 1952 provides for establishment of scheme with regard to the Employees' Provident Funds, section 5 of the Act provides (1) The Central Government may by notification in the Official Gazette frame a Scheme to be called the Employees' Provident Funds Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the establishments or class of establishments to which the said Scheme shall apply and there shall be established as soon as may be after the framing of the Scheme a Fund in accordance with the provisions of this Act and the Scheme.

(1A) The Fund shall vest in and be administered by the Central Board constituted under section 5A.

(1B) Subject to the provisions of this Act a Scheme framed under sub-section (1) may provide for all or any of the matters specified in Sch. II.

(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme. In any establishment if such scheme is applicable it shall apply to all the employees of the said establishment irrespective of their salary or for any class of employees as the case may be. Section 6 of the Act provides Contributions and matters which may be provided for in the Scheme
The contribution which shall be paid by the employer to the Fund shall eight and one-third per cent of the basic wages dearness allowances and retaining allowance (if any) for the time being payable to each of the employees (whether employed by him directly or by or through a contractor) and the employees' contribution shall be equal to the contribution payable by the employer in respect of him and may if any employee so desires and if the Scheme makes provision therefore be an amount not exceeding eight and one-third per cent of his basic wages dearness allowances and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section;

Provided that in its application to any establishment or class of establishments which the Central Government after making such inquiry as it deems fit may by notification in the Official Gazette specify this section shall be subject to the modification that for the words "eight and one-third per cent" at both the places where they occur the words "ten per cent" shall be substituted :

Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee the Scheme may provide for the rounding off of such fraction to the nearest rupee half of a rupee or quarter to a rupee.

Explanation 1 : For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.

Explanation 2 : For the purposes of this section retaining allowance means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working for retaining his services. As far exemption from any such scheme is concerned section 17 of the Act clearly provides (1) The appropriate government may by notification in the Official Gazette and subject to such conditions as may be specified in the notification exempt whether prospectively or retrospectively from the operation of all or any of the provisions of any Scheme :

(a) any establishment to which this Act applies if in the opinion of the appropriate government the rules of its provident fund with respect to the rates of contribution are not less favorable than those specified in section 6 and the employees are also in enjoyment of other provident fund benefits which on the whole are not less favorable to the employees than the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of similar character or

(b) any establishment are in enjoyment of benefits in the nature of provident fund pension or gratuity and the appropriate government is of opinion that such benefits separately or jointly are on the whole not less favorable to such employees that the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of a similar character :

Provided that no such exemption shall be made except after consultation with the Central Board which on such consultation shall forward its views on exemption to the appropriate government within such time limit as may be specified in the Scheme.
Now what one has to see the details of the provident scheme that is being followed by the establishment under question & see the exemption portion that allows any employee to remain out this scheme at his wish. Definitely such exemption from the provident scheme must be provided under which the employee has right to remain out of the provident fund scheme applicable to the establishment where he works for the reasons which the appropriate government had notified regarding the exemption of the said scheme in certain cases. Let me point out here "appropriate government" means -

(i) in relation to an establishment belonging to or under the control of the Central Government or in relation to an establishment connected with a railway company a major port a mine or an oil field or a controlled industry or in relation to an establishment having departments or branches in more than one State the Central Government; and
(ii) in relation to any other establishment the State Government; Since the details of you case are not known to me nor I know where you work, it will be best for you to check the provisions of the provident fund scheme applicable to you in the establishment where you work & check the details I have pointed out here.

Answer 2

It is a statutory provision, and all employees subject to salary limit upto Rs.6,500/- p.m are entitled and are required to become members whether casual/temporary /daily wages from the date of joining.It is obligatory for such employees to become members of EPF, you con't escape.

Answer 3

No what Raghu says is wrong.

A employee can always back out from the plan. It is his / her wish. If any employee does not need it then go ahead ... don't deduct and pay that amount in salary itself.

Answer 4

What is an EPF?