Dear All,
Please find attached a news paper clipping of today's Hindustan Times on PF Contribution on HRA, Conv. etc., for your information.
Please also find copies of recent Judgments of High Courts at MP and Madras.
Thanks & Regards.
Keshav Korgaonkar
http://www.shantadurgaent.com,Welcome To Shantadurga Enterprises
Cell: +91 99675 16383
From India, Mumbai
2556Please find attached a news paper clipping of today's Hindustan Times on PF Contribution on HRA, Conv. etc., for your information.
Please also find copies of recent Judgments of High Courts at MP and Madras.
Thanks & Regards.
Keshav Korgaonkar
http://www.shantadurgaent.com,Welcome To Shantadurga Enterprises
Cell: +91 99675 16383
From India, Mumbai
SPLITTING OF MINIMUM WAGES FOR PROVIDENT FUND CONTRIBUTIONS
It may be recollected that in Assistant Provident Fund Commissioner, Gurgaon Vs. G4S Security Services (India) Limited & Anr, 2011 LLR 316, the Punjab & Haryana High Court has held that the provident fund contributions are not necessarily to be paid on the wages which are fixed under the Minimum Wages Act.
Being aggrieved, the EPFO filed a Letters Patent Appeal No. 1139 of 2011 before the Division Bench challenging the order of learned Single Judge. The Division Bench, comprising of the Hon’ble Chief Justice Adarsh Kumar and the Hon’ble Justice A.K. Mittal, on 20.07.2011 dismissed the appeal.
From India, Delhi
It may be recollected that in Assistant Provident Fund Commissioner, Gurgaon Vs. G4S Security Services (India) Limited & Anr, 2011 LLR 316, the Punjab & Haryana High Court has held that the provident fund contributions are not necessarily to be paid on the wages which are fixed under the Minimum Wages Act.
Being aggrieved, the EPFO filed a Letters Patent Appeal No. 1139 of 2011 before the Division Bench challenging the order of learned Single Judge. The Division Bench, comprising of the Hon’ble Chief Justice Adarsh Kumar and the Hon’ble Justice A.K. Mittal, on 20.07.2011 dismissed the appeal.
From India, Delhi
Dear All,
EPFO to seek legal view on nationwide implementation of HC order not allowing splitting of wages for calculation of PF.================================================== ========================================
Retirement fund manager EPFO will seek the legal opinion on implementation of the order of the MP High Court throughout the country under which employers and employees will be required to increase their contributions to the provident fund. “We will seek legal opinion and also the opinion of Ministry of Law and Justice Ministry, through Labour Ministry, on the MP High Court order throughout the country,” Central Provident Fund Commissioner Samirendra Chatterjee said.
The Madhya Pradesh (MP) High Court in its recent order said that regular allowances like conveyance, entertainment, medical etc should be included in the salary while computing the 12 per cent contribution to provident fund.
At present, the provident fund contribution, which is mandatory for all employees, forms 12 per cent of the basic pay. Employer is also required to contribute the matching amount.
The court order would be implemented by the Employees’ Provident Fund Organisation (EPFO) in Madhya Pradesh, Chatterjee said, adding the decision on extending it across the country would be taken after seeking the legal opinion.
The implementation of the order will put extra burden on employer and reduce the take home salary of the employee, as both will be required to enhance their contribution to the retirement fund.
On the positive side, the decision will significantly enhance the corpus of the EPFO, which has recently appointed four fund managers to manage its Rs 3.5 lakh crore, and enhance better returns at the time of retirement for its 4.72 crore subscribers.
It means we need not to follow MP High court order till legal view of Ministry of law and Justice.
Wait and watch the game.
Regards
Amit
From India, Delhi
EPFO to seek legal view on nationwide implementation of HC order not allowing splitting of wages for calculation of PF.================================================== ========================================
Retirement fund manager EPFO will seek the legal opinion on implementation of the order of the MP High Court throughout the country under which employers and employees will be required to increase their contributions to the provident fund. “We will seek legal opinion and also the opinion of Ministry of Law and Justice Ministry, through Labour Ministry, on the MP High Court order throughout the country,” Central Provident Fund Commissioner Samirendra Chatterjee said.
The Madhya Pradesh (MP) High Court in its recent order said that regular allowances like conveyance, entertainment, medical etc should be included in the salary while computing the 12 per cent contribution to provident fund.
At present, the provident fund contribution, which is mandatory for all employees, forms 12 per cent of the basic pay. Employer is also required to contribute the matching amount.
The court order would be implemented by the Employees’ Provident Fund Organisation (EPFO) in Madhya Pradesh, Chatterjee said, adding the decision on extending it across the country would be taken after seeking the legal opinion.
The implementation of the order will put extra burden on employer and reduce the take home salary of the employee, as both will be required to enhance their contribution to the retirement fund.
On the positive side, the decision will significantly enhance the corpus of the EPFO, which has recently appointed four fund managers to manage its Rs 3.5 lakh crore, and enhance better returns at the time of retirement for its 4.72 crore subscribers.
It means we need not to follow MP High court order till legal view of Ministry of law and Justice.
Wait and watch the game.
Regards
Amit
From India, Delhi
Dear All,
Judgement of H'ble H.C. at judicature of different State is not binding. Therefore I have shared the information in current thread for your information only.
Thanks & Regards.
Keshav Korgaonkar
http://www.shantadurgaent.com,Welcome To Shantadurga Enterprises
Cell: +91 99675 16383
From India, Mumbai
Judgement of H'ble H.C. at judicature of different State is not binding. Therefore I have shared the information in current thread for your information only.
Thanks & Regards.
Keshav Korgaonkar
http://www.shantadurgaent.com,Welcome To Shantadurga Enterprises
Cell: +91 99675 16383
From India, Mumbai
The pf authority should have changed the relevent section of the act first and then they would have issued any circular.But in the instant case they have issued an order on 21/6/11 to their field offices for its compliance which is not correct,
It is not a judgment of the appex court. and hence may not be implemented unilaterly throughout the country.
Regards;
From India, Delhi
It is not a judgment of the appex court. and hence may not be implemented unilaterly throughout the country.
Regards;
From India, Delhi
Thanks for sharing the important information.
But one thing i want to be clarified by you all that as per my knowledge the epf liability is only upto salary of 6500/- per month and whose salary is higher than 6500/- per month PF contribution is to be made only on Rs. 6500/-.
Is is so or any change ?
Pradeep Srivastava
Naraingarh Sugar Mills Ltd.
From India, Ambala
But one thing i want to be clarified by you all that as per my knowledge the epf liability is only upto salary of 6500/- per month and whose salary is higher than 6500/- per month PF contribution is to be made only on Rs. 6500/-.
Is is so or any change ?
Pradeep Srivastava
Naraingarh Sugar Mills Ltd.
From India, Ambala
Hi, Please help me with respect to ceiling limit of Rs. 6500 as far as employer’s contribution is concerned. Regards, Swapnil
From India, Pune
From India, Pune
Can the decision of division bench of Chennai High Court be shared on this thread by someone?
From India, Mumbai
From India, Mumbai
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.
Calculation of PF ESI Damages (Latest).xls