Pf is not payable where the employee has joined the company on a salary of above rs. 6500 and did not have an active pf account when he joined. More correctly, where he did not have pf in his previous company and has not had it closed when he joined a new company.
From India, Mumbai
2396From India, Mumbai
Hi Swasthik! Are you saying that the employees drawing more than 6500/-(gross or basic couldn'nt make out) are not liable for any PF deductions?
Also, if any employee has a PF account earlier & changes the company, could you please tell me, what needs to use the same PF account. If somebody opens a new PF account, what would happen to the old account. I read somewhere that it remains active only.
From India, Chandigarh
Also, if any employee has a PF account earlier & changes the company, could you please tell me, what needs to use the same PF account. If somebody opens a new PF account, what would happen to the old account. I read somewhere that it remains active only.
From India, Chandigarh
Hello Mr. Saisevan, Please correct me if I am wrong.
As per the ESI Act, the minimum wages are Rs.50 under which the employees do not need to contribute for ESI & all the payment is done by Employer. Trainees & Apprentice are not liable for any deduction for ESI & EPF both.
"If P.F is to be deducted for all employees, then who is an excluded employee under Para 2(f) of the P.F Scheme 1952? and when he will figure?"
Can you please throw some light on the same. There are employees who are not not liable for deduction. What are the criterias for the same? I was unable to find for when the e/ee would figure"
Would be thankful for you time & efforts!!
Thanks,
Axita
From India, Chandigarh
As per the ESI Act, the minimum wages are Rs.50 under which the employees do not need to contribute for ESI & all the payment is done by Employer. Trainees & Apprentice are not liable for any deduction for ESI & EPF both.
"If P.F is to be deducted for all employees, then who is an excluded employee under Para 2(f) of the P.F Scheme 1952? and when he will figure?"
Can you please throw some light on the same. There are employees who are not not liable for deduction. What are the criterias for the same? I was unable to find for when the e/ee would figure"
Would be thankful for you time & efforts!!
Thanks,
Axita
From India, Chandigarh
6500 basic
Employee joining a company on salary above 6500 does not need to subscribe to pf scheme. He has to fill up form a and pf will not be deducted from his salary. Nor will pf contribution be applicable from employer.
Form A has a declaration that the employee does not have any existing pf account. Which means only can happen with someone who has not worked earlier in a company where he was getting pf deducted. Or if he has withdrawn the pf from that acco tnprior joining the new company.
If u have an existing pf account from your old company, you are required to have the same teansfered to your new pf account
From India, Mumbai
Employee joining a company on salary above 6500 does not need to subscribe to pf scheme. He has to fill up form a and pf will not be deducted from his salary. Nor will pf contribution be applicable from employer.
Form A has a declaration that the employee does not have any existing pf account. Which means only can happen with someone who has not worked earlier in a company where he was getting pf deducted. Or if he has withdrawn the pf from that acco tnprior joining the new company.
If u have an existing pf account from your old company, you are required to have the same teansfered to your new pf account
From India, Mumbai
Axita
An employee is exempted from paying employee's share of ESI contribution if his daily average wages is up to Rs.70(to be verified even if this limit has been increased or not along with the upper wage limit). This shall not be construed as minimum wage limit for coverage.Only trainees and apprentices appointed under Apprentices Act are outside the purview of the ESI Act but not all .So far as P.F Act is considered , trainees and apprentices appointed under Apprentices Act or under Standing orders are exempt from the Act
So far your P.F enquiry is considered, I think the reply given by swastika Benerjee will suffice to st your doubt at rest.
B.Saikumar
Hr & Labour Law advisor
Mumbai
From India, Mumbai
An employee is exempted from paying employee's share of ESI contribution if his daily average wages is up to Rs.70(to be verified even if this limit has been increased or not along with the upper wage limit). This shall not be construed as minimum wage limit for coverage.Only trainees and apprentices appointed under Apprentices Act are outside the purview of the ESI Act but not all .So far as P.F Act is considered , trainees and apprentices appointed under Apprentices Act or under Standing orders are exempt from the Act
So far your P.F enquiry is considered, I think the reply given by swastika Benerjee will suffice to st your doubt at rest.
B.Saikumar
Hr & Labour Law advisor
Mumbai
From India, Mumbai
The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.100/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
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From India, Hyderabad
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ESIC-Chinta Se Mukti <link updated to site home> ( Search On Cite | Search On Google )
From India, Hyderabad
Nobody is focusing on the question which is what is the minimum limit of EPF ? Hi Axita, As per my knowledge EPF should be deducted at minimum level on Minimum wages, For this we can take Basic+DA.
From India, Chandigarh
From India, Chandigarh
Mr.Jeevarathnam P
Please can you tell me my gross salary is 20.000/- and after cutting professional tax of rs.200/- i getting in hand 19.800/-
my employer starting to cut TDS from Apr month of something Rs.265/- . i am giving tax declaration form to employer of Rs.105000/-
Which calculation he is using can you tell me in detail with calculation on my mail id?
Regards
Machhindra Tuwar
From India, Mumbai
Please can you tell me my gross salary is 20.000/- and after cutting professional tax of rs.200/- i getting in hand 19.800/-
my employer starting to cut TDS from Apr month of something Rs.265/- . i am giving tax declaration form to employer of Rs.105000/-
Which calculation he is using can you tell me in detail with calculation on my mail id?
Regards
Machhindra Tuwar
From India, Mumbai
Hi Machhindra
For the gross of Rs. 20,000/- if there is breakups like HRA, and other allowances then there is no point of TDS. Even for Rs. 27,000/- a month will not attract TDS if there is proper Salary Structure.
How can I tell as he is using the tax calculation. I believe as he might consider entire pay taxable income with out any allowance
From India, Bangalore
For the gross of Rs. 20,000/- if there is breakups like HRA, and other allowances then there is no point of TDS. Even for Rs. 27,000/- a month will not attract TDS if there is proper Salary Structure.
How can I tell as he is using the tax calculation. I believe as he might consider entire pay taxable income with out any allowance
From India, Bangalore
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