Hi We are planning for pf , for our employee so what are the intial step we have to take. help me
From India, Delhi
From India, Delhi
It is always advisable to make it applicable to all employees rather than case to case because in the latter case there is a chance that in future there may arise some disagreement regarding the CTC aspects since some employees are not getting the share of PF that employer contributes. From the point of view of EPF Organisation there will not be any problem since already it is an initiate by the employer not by compulsion but by will.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
Dear All,
If Basic salary is more than Rs.6500 it is not mandatory on employer and employee part for contribution. But on mutual consent from both the parties, contribution can be made with effect from the date of mutual consent.
Mr.Madhu is right and explained in the best possible way.
From India, Bhubaneswar
If Basic salary is more than Rs.6500 it is not mandatory on employer and employee part for contribution. But on mutual consent from both the parties, contribution can be made with effect from the date of mutual consent.
Mr.Madhu is right and explained in the best possible way.
From India, Bhubaneswar
If the person has submitted his declaration at the time of Joining in from No 11 EPF of Act his is not willing to become menber of EPF and same declartaion has taken on the date of Joining why he is approching to become EPF member since the date of joining.
One thing i tell you that it can be applicale with present date in case it has been implemented from the date of joining it will creat lots of problem. the all contribution will be deposited with intrest as applicable by the act and damages may be payable u/s 14B of the EPF Act therefore if it is necessory you may implement PF Deduction w.e.f current period. not from the date of joining after 1year
Dashrath Mishra
08800113175
From India, Delhi
One thing i tell you that it can be applicale with present date in case it has been implemented from the date of joining it will creat lots of problem. the all contribution will be deposited with intrest as applicable by the act and damages may be payable u/s 14B of the EPF Act therefore if it is necessory you may implement PF Deduction w.e.f current period. not from the date of joining after 1year
Dashrath Mishra
08800113175
From India, Delhi
Mr Sapid & All
I have gone through the responses and Mr Madhu is right. However, I would like to summarise the response for a clear understanding:
1. PF is applicable from day one, the employee joins
2. The Act gives an option that those whose basic+DA is above Rs.6500/- need not be covered under PF & EPS
3. The companies can restrict to pay PF if their basic+DA is above Rs.6500/-. However, this is not mandatory
4. The companies can extend PF benefit even if it is more than Rs.6500/- upto the full basic+DA.
5. It is always advisable to cover the employees from day one and the option of coverage under PF should not be case to case basis. Otherwise, the companies will have administrative problems.
Regards
K.Ramachandra
Bangalore
I have gone through the responses and Mr Madhu is right. However, I would like to summarise the response for a clear understanding:
1. PF is applicable from day one, the employee joins
2. The Act gives an option that those whose basic+DA is above Rs.6500/- need not be covered under PF & EPS
3. The companies can restrict to pay PF if their basic+DA is above Rs.6500/-. However, this is not mandatory
4. The companies can extend PF benefit even if it is more than Rs.6500/- upto the full basic+DA.
5. It is always advisable to cover the employees from day one and the option of coverage under PF should not be case to case basis. Otherwise, the companies will have administrative problems.
Regards
K.Ramachandra
Bangalore
Dear...
First of all company is not liable to contribute toward P.F if employee basic salary more than 6500p.m. If your company wants to give the P.F benefit to the employee. So, there is no problem. company can give the benefit to the employee.
But ensure one thing employee date of joining should be contribution date of the P.F. In your record, his date of joining is anything. But when you start the P.F contribution, employee joining date should be the contribution date.
i.e Date of Joining 01-04-2010
Date of P.F contribution 01-04-2011, Mention the date of joining in P.F return is 01.04.2011.
So, there is no problem.... go ahead.
Regards,
Atul Katoch
From India, Ludhiana
First of all company is not liable to contribute toward P.F if employee basic salary more than 6500p.m. If your company wants to give the P.F benefit to the employee. So, there is no problem. company can give the benefit to the employee.
But ensure one thing employee date of joining should be contribution date of the P.F. In your record, his date of joining is anything. But when you start the P.F contribution, employee joining date should be the contribution date.
i.e Date of Joining 01-04-2010
Date of P.F contribution 01-04-2011, Mention the date of joining in P.F return is 01.04.2011.
So, there is no problem.... go ahead.
Regards,
Atul Katoch
From India, Ludhiana
Dear DG,
Firstly please let us know the no of employees in your organization / office. If it is less than 20 and you are going for voluntary coverage, the process is different. If it was more than 20, then why all the employees were not covered from the day when your company touched 20 employees.
Regards
Murali
From India, Chennai
Firstly please let us know the no of employees in your organization / office. If it is less than 20 and you are going for voluntary coverage, the process is different. If it was more than 20, then why all the employees were not covered from the day when your company touched 20 employees.
Regards
Murali
From India, Chennai
Dear Mr.DG,
Please note that you can start deducting PF for the employee from the date of completion of even 1 year also.But should assure that the employee was on probation for the said one year.Otherwise you should remit the PF from his date of joining.12% of the basic salary can be deducted and remit to PF fund.The limit for deduction of the basic salary is up to 6500.00.
Nidhi
HR Manager
Liberty Marketers
From India, Kochi
Please note that you can start deducting PF for the employee from the date of completion of even 1 year also.But should assure that the employee was on probation for the said one year.Otherwise you should remit the PF from his date of joining.12% of the basic salary can be deducted and remit to PF fund.The limit for deduction of the basic salary is up to 6500.00.
Nidhi
HR Manager
Liberty Marketers
From India, Kochi
Hello All
as per the Provident Fund act 1952, amended in 2006-2007, it is clear that the limit of calculation is set at Rs. 6500/- minimum (Basic + DA only).
as his basic is much above the set limit, his PF cannot be deducted as he is not eligible for the same.
Matter close.
Dont get confused between PF and ESI.
Rashpal
HR Manager
From India, Chandigarh
as per the Provident Fund act 1952, amended in 2006-2007, it is clear that the limit of calculation is set at Rs. 6500/- minimum (Basic + DA only).
as his basic is much above the set limit, his PF cannot be deducted as he is not eligible for the same.
Matter close.
Dont get confused between PF and ESI.
Rashpal
HR Manager
From India, Chandigarh
NO, Problem if the basic is Rs. 10,000 and the employee has completed one year and co want to give the benefit of P.F. that not the problem, you can show the mention the present date of deduction there is no statutory problem and can show the actual date of joining, statutory problem can arise only when the Basic was less than Rs. 6,500/- and you were not deducting P.F. if basic is more than Rs. 6,500/- and you can give the benefit after one year.
Rajiv Singh
From India
Rajiv Singh
From India
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