Thanks.
The below are the sample Salary break up of my employee.
Name Basic+DA HRA Medical Reimbursement Conveyance LTA Spl All Gross Pay( per month)
A 10000 5000 1250 800 833 2117 20000
B 15000 7500 1250 800 1250 4200 30000
C 7500 3750 1250 800 625 1075 15000
D 12500 6250 1250 800 1042 3158 25000
E 37500 18750 1250 800 3125 13575 75000
F 4250 2125 625 400 354 746 8500
G 30000 15000 1250 800 2500 10450 60000
When I was interacting with PF Consultant, he say that his Basic +DA may be >6500 or >10,000 to >40,000.
Example:
Suppose if the Employee has Basic+DA is 10,000, he says that we can calculate for 6500 as Basic+ DA and we can leave the remain amount Basic+DA 3500.
But we can show the below Salary break up for PF records
Name Basic+DA HRA Medical Reimbursement Conveyance LTA Spl All Gross Pay( per month)
A 10000 5000 1250 800 833 2117 20000
My question is
• Suppose if I’m following my consultant advice it will not create any problem for me.
• My employee strength is 40, and most of them are getting their Basic+DA is >10,000-40,000.
• We want to include the employee in PF or NOT.
• But consultant is saying that if the Employee strength is 40, atleast 30 Employee should to be in ESI AND EPF.
• Incase any PF inspectors came for inspection definitely he will put fine for not paying PF contribution.
• At present out of 40 Employee we had 5 Employee in ESI and EPF.
• Pls give me valuable suggestion to sort out my problem
From India, Madras
The below are the sample Salary break up of my employee.
Name Basic+DA HRA Medical Reimbursement Conveyance LTA Spl All Gross Pay( per month)
A 10000 5000 1250 800 833 2117 20000
B 15000 7500 1250 800 1250 4200 30000
C 7500 3750 1250 800 625 1075 15000
D 12500 6250 1250 800 1042 3158 25000
E 37500 18750 1250 800 3125 13575 75000
F 4250 2125 625 400 354 746 8500
G 30000 15000 1250 800 2500 10450 60000
When I was interacting with PF Consultant, he say that his Basic +DA may be >6500 or >10,000 to >40,000.
Example:
Suppose if the Employee has Basic+DA is 10,000, he says that we can calculate for 6500 as Basic+ DA and we can leave the remain amount Basic+DA 3500.
But we can show the below Salary break up for PF records
Name Basic+DA HRA Medical Reimbursement Conveyance LTA Spl All Gross Pay( per month)
A 10000 5000 1250 800 833 2117 20000
My question is
• Suppose if I’m following my consultant advice it will not create any problem for me.
• My employee strength is 40, and most of them are getting their Basic+DA is >10,000-40,000.
• We want to include the employee in PF or NOT.
• But consultant is saying that if the Employee strength is 40, atleast 30 Employee should to be in ESI AND EPF.
• Incase any PF inspectors came for inspection definitely he will put fine for not paying PF contribution.
• At present out of 40 Employee we had 5 Employee in ESI and EPF.
• Pls give me valuable suggestion to sort out my problem
From India, Madras
As per Employees Provident Fund and Miscellaneous Provisions Act, 1952,an employee whose salary (Basic + DA) AT THE TIME OF HIS JOINING THE ESTABLISHMENT is not more than Rs 6500 per month is to become a member of Provident Fund. That means, it is not obligatory or it is optional for an employee whose salary at the time of joining is more than Rs 6500 to become a member of EPF. However, an employee once become a member of PF will continue to be a member irrespective of his salary. Therefore, what is more important to decide whether one should become a PF member or not is the salary at the time of joining the establishment and in this regard the personal interest of the employee is not at all taken into account.
In your establishment when all employees have more than Rs 25000 as salary (I presume that this is the Basic salary and not the so called CTC) and no one has been covered so far, let them be uncovered.
Please be informed that salary for coverage and contribution towards PF means Basic Salary and the dearness Allowance only.
Regards,
Madhu.T.K
From India, Kannur
4249In your establishment when all employees have more than Rs 25000 as salary (I presume that this is the Basic salary and not the so called CTC) and no one has been covered so far, let them be uncovered.
Please be informed that salary for coverage and contribution towards PF means Basic Salary and the dearness Allowance only.
Regards,
Madhu.T.K
From India, Kannur
I have been contributing to PF for the last 12 years, thro' various employers. Recently I had joined a new organization, which is a new one and they do not contribute to PF at all for all the employees. Now what shall i do? can i keep contributing to PF without my employer contribution or can I take the PF back? then what happens to pension contribution of my last 12 years contribution?
From India
From India
You can not get coverage of any statute by yourselves alone. If you have to continue with PF, first of all your establishment should get coverage. Once the establishment is covered, you can transfer the PF accumulations together with your pensionable service to the new PF account.
I hope whenever you had a job change you had transferred the PF account from the previous employer to the present account. If so, your preceding PF account would have credit of all the previous PF accumulations. You can either keep it or withdraw the Provident Fund accumulations and obtain a scheme certificate for the Pension Fund contributions. The same can be surrendered when you join another establishment to which EPF applies or when your present establishment becomes covered by EPF.
Regards,
Madhu.T.K
From India, Kannur
I hope whenever you had a job change you had transferred the PF account from the previous employer to the present account. If so, your preceding PF account would have credit of all the previous PF accumulations. You can either keep it or withdraw the Provident Fund accumulations and obtain a scheme certificate for the Pension Fund contributions. The same can be surrendered when you join another establishment to which EPF applies or when your present establishment becomes covered by EPF.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu Sir,
I need one clarification:-
1. If someone join the new organisation more than 6500 then it depends on the employee whether he wants contribute or not? Is there any formality or in any written form need to sent to PF office.
2. If someone at the joining has 6500 p/m and later having 30000 p/m and doesn't want to contribute than what is the procedure for exemption.
waiting for your reply sir.
with regards
From India, Jhajjar
I need one clarification:-
1. If someone join the new organisation more than 6500 then it depends on the employee whether he wants contribute or not? Is there any formality or in any written form need to sent to PF office.
2. If someone at the joining has 6500 p/m and later having 30000 p/m and doesn't want to contribute than what is the procedure for exemption.
waiting for your reply sir.
with regards
From India, Jhajjar
Dear karam,
As Madhu Sir has already cleared above that once an employee is covered under PF, it will continue till his services with that organization irrespective of salary increase. Nothing is left in employee hand later on, it is necessary to continue under the act. As far as other other employees whose basic is more than 6500 and does not want to be covered under PF, use Form No. 11 for exemption. (can down load from Pf site)
Regards,
From India, Delhi
As Madhu Sir has already cleared above that once an employee is covered under PF, it will continue till his services with that organization irrespective of salary increase. Nothing is left in employee hand later on, it is necessary to continue under the act. As far as other other employees whose basic is more than 6500 and does not want to be covered under PF, use Form No. 11 for exemption. (can down load from Pf site)
Regards,
From India, Delhi
Dear Madhu Sir
plz tell me in which act it is mentioned it is optional for an employee whose salary at the time of joining is more than Rs 6500 to become a member of EPF or not.
plz suggest me soon
its urgent
From India, New Delhi
plz tell me in which act it is mentioned it is optional for an employee whose salary at the time of joining is more than Rs 6500 to become a member of EPF or not.
plz suggest me soon
its urgent
From India, New Delhi
Dear
Sir my name is khan shah and new member of this site & i m student MBA final sem in HR specialization as well as continue job in production sir now i want to join HR department so plz give me some important suggestion for interview about how to caculate PF, ESI, HRA DA plz sir help me.
DRkhan
From India, Lucknow
Sir my name is khan shah and new member of this site & i m student MBA final sem in HR specialization as well as continue job in production sir now i want to join HR department so plz give me some important suggestion for interview about how to caculate PF, ESI, HRA DA plz sir help me.
DRkhan
From India, Lucknow
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