Dear Friends,
I have a query regarding waving off P.F capped basic. Our company is almost 10 years old ,from inception restricted basic Rs. 6500/- (capped basic) and deducting the same accordingly.
Recently our company has decided to waive off the capped basic from March onwards (staring month of P.F contributions) and going to deduct on actual basic. I know according to P.F norms we can do that. Problem is, there are few of our employees opposing this amendment because their take home will reduce. As we are all aware that in CTC concept either side contributions includes. We can agree with them but once company decided to impose this rule employees should comply.
My queries are:
Is there any clause in P.F stating, company can opt this for few employees who are willing to accept? another one is
Can we deduct P.F on capped basic from employees, who are not willing to opt this? Since it will not affect their take home salary.
I have asked about the same to one of P.F officials. He said that, company should follow the uniform rule and once decided should deduct on actually basic from all employees.
Hence I am requesting to all seniors please clarify my query.
An early action in this regard would be highly appreciated.
Regards,
TSK
From India, Hyderabad
85I have a query regarding waving off P.F capped basic. Our company is almost 10 years old ,from inception restricted basic Rs. 6500/- (capped basic) and deducting the same accordingly.
Recently our company has decided to waive off the capped basic from March onwards (staring month of P.F contributions) and going to deduct on actual basic. I know according to P.F norms we can do that. Problem is, there are few of our employees opposing this amendment because their take home will reduce. As we are all aware that in CTC concept either side contributions includes. We can agree with them but once company decided to impose this rule employees should comply.
My queries are:
Is there any clause in P.F stating, company can opt this for few employees who are willing to accept? another one is
Can we deduct P.F on capped basic from employees, who are not willing to opt this? Since it will not affect their take home salary.
I have asked about the same to one of P.F officials. He said that, company should follow the uniform rule and once decided should deduct on actually basic from all employees.
Hence I am requesting to all seniors please clarify my query.
An early action in this regard would be highly appreciated.
Regards,
TSK
From India, Hyderabad
Dear TSK,
As sharma said gradually the saving of the company pf amount increases.. once if they go beyond the capped amount you can council each and every employee and explain them the benefits as they get
1. PF Savings increases gradually
2. Statutory deductions can be exempted in Income Tax
3. Gradually their ctc will be seeming hike....
But see that company should not decrease the basic amount or restructure the basic as the pf contributions are paid to greater extent so you can suggest management as it will be defnitely a problem in future so be specific before framing a policy think.... because in our company we are facing the same problem....
Regards,
R.Ramkishore
From India, Bangalore
As sharma said gradually the saving of the company pf amount increases.. once if they go beyond the capped amount you can council each and every employee and explain them the benefits as they get
1. PF Savings increases gradually
2. Statutory deductions can be exempted in Income Tax
3. Gradually their ctc will be seeming hike....
But see that company should not decrease the basic amount or restructure the basic as the pf contributions are paid to greater extent so you can suggest management as it will be defnitely a problem in future so be specific before framing a policy think.... because in our company we are facing the same problem....
Regards,
R.Ramkishore
From India, Bangalore
Dear TSK,
You may deduct PF on ceiling amount for some of the employees and on actual salary for rest of the employees with prior consent from the RPFC.
The contribution over and above ceiling salary is allowed as voluntary contribution which is not compulsory to all as well as uniformity is also not required.
Abbas.P.S
From India, Bangalore
You may deduct PF on ceiling amount for some of the employees and on actual salary for rest of the employees with prior consent from the RPFC.
The contribution over and above ceiling salary is allowed as voluntary contribution which is not compulsory to all as well as uniformity is also not required.
Abbas.P.S
From India, Bangalore
- Any prudent person should agree for your proposed move on voluntary PF Contribution because i) employee is getting additional indirect income by way of employers' contribution, ii) employee is saving a lot thru his and employers contribution, iii) this saving has tax exemption
- I feel you should be able to convince employees and explain to them good gesture of your management, which has long term benefit to employees. May be they may feel little pinch in initial months due to marginally reduced net pay.
- I am not in favor of too many combinations and variations in policy. It becomes very difficult to take care of too many exceptions in long run. So stick to well thought, uniform policy for all employees.
From India, Pune
As an employee, I will suggest that If there is any representative body for employees, call them and advise to pass resolution in favor of the Managements proposal, in their General body meeting and get a copy of the same with covering letter from the representative body. This is enough for such recovery.
As a Manager I would like to say that without any demand from the employees Company should not propose any additional expenses to the employees. Employees themselves are not in favor of the additional expenses means, Management has to review the proposal to avoid additional expenses.
From India, Madras
As a Manager I would like to say that without any demand from the employees Company should not propose any additional expenses to the employees. Employees themselves are not in favor of the additional expenses means, Management has to review the proposal to avoid additional expenses.
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Basic-communica tion-skills_198 .ppt
Basic Accounting Tutorial.doc
Basic Attrition Analysis.xls