Dear Members, can PF deducted to the employees who’s gross salary is 5000 rs/mnth.. Plz suggest me about this... Regards, Vaniananth
From India, Mangaluru
From India, Mangaluru
Dear Vaniananth,
Yes, PF is applicable to all the employees whose Basic + DA is upto Rs.6500/-.
Employees drawing Basic + DA more than Rs.6500/- can opt out from the scheme.
Hope your query is resolved.
Regards,
Manasi
From India, Thana
14Yes, PF is applicable to all the employees whose Basic + DA is upto Rs.6500/-.
Employees drawing Basic + DA more than Rs.6500/- can opt out from the scheme.
Hope your query is resolved.
Regards,
Manasi
From India, Thana
Hi All,
If an employee whose getting a gross salary of Rs. 5000/- first we you have to check whether it is below or above the minimum wages, if it is below the minimum wage then give an hike and make his salary to the minimum wage and on that minimum wage you can deduct the PF on that and the minimum wage you cann't split that and am attaching the attachment here for your perusal.
Regards,
Siva Kumar Tata
From India, Hyderabad
If an employee whose getting a gross salary of Rs. 5000/- first we you have to check whether it is below or above the minimum wages, if it is below the minimum wage then give an hike and make his salary to the minimum wage and on that minimum wage you can deduct the PF on that and the minimum wage you cann't split that and am attaching the attachment here for your perusal.
Regards,
Siva Kumar Tata
From India, Hyderabad
Dear Ashwinee,
me too looking for an answer for same query..but as discussed with few, if someone is already a member of PF there is no way to opt out. you can only restrict new enrolments in PF given their Basic+DA is upto 6500.
hope I am correct..would request seniors to respond if there is something wrong.
regards,
saunee
From India, New Delhi
me too looking for an answer for same query..but as discussed with few, if someone is already a member of PF there is no way to opt out. you can only restrict new enrolments in PF given their Basic+DA is upto 6500.
hope I am correct..would request seniors to respond if there is something wrong.
regards,
saunee
From India, New Delhi
Hi all,
This topic has been elaborately discussed in this forum time and again. What I have learned from them is - If one's salary (Basic + DA) is more than Rs. 6500/- he may wish to opt out of the PF statutory submission. For this at his joining, he needs to fill form 11 and submit to PF office.
Having said the above, in my opinion its always better to be a part of PF contribution as a similar amount is deposited by the compnay as well plus the interest p.a. It becomes a huge amount whenever you leave your organsiation which you may either withdraw (to repay ur loans, if any or for further reinvestment) or transfer the amount of the next PF account no. (preferred). Moreover, you get the tax benefit also on the PF submissions under Income Tax Act, 1961.
From India, New Delhi
This topic has been elaborately discussed in this forum time and again. What I have learned from them is - If one's salary (Basic + DA) is more than Rs. 6500/- he may wish to opt out of the PF statutory submission. For this at his joining, he needs to fill form 11 and submit to PF office.
Having said the above, in my opinion its always better to be a part of PF contribution as a similar amount is deposited by the compnay as well plus the interest p.a. It becomes a huge amount whenever you leave your organsiation which you may either withdraw (to repay ur loans, if any or for further reinvestment) or transfer the amount of the next PF account no. (preferred). Moreover, you get the tax benefit also on the PF submissions under Income Tax Act, 1961.
From India, New Delhi
Dear All,
Let me try to clarify your doubts.
Following is the general checklist you can follow:
Minimum Wages:
1. Check the Minimum Wages applicable to your state for Un-Skilled - Semi-Skilled - Skilled employees.
2. Check the Basic + DA given to employees as per their skill
If Minimum Wages Act is not followed, following steps to be taken:
a.) For employees drawing Gross Salary less than the minimum wages:
Basic + DA should be equal to Gross Salary i.e no bifurcation in the salary possible.
E.g Employee Gross is Rs.2500/- (below minimum wages) hence the Basic + DA = Rs. 2500/-
PF Applicability: Rs. 2500/-
b.) Take necessary steps to hike the salary as per minimum wages.
For employees whose Gross Salary is high but Basic + DA is not as per Minimum Wages:
b.) Restructure the Salary as we cannot bifurcate the Minimum Wages.
E.g : Basic + DA = Amount equal to or more than Minimum Wages
Other Allowances = Remaining Amount
(You can add Allowances as per the need be)
PF Applicability:
1. Where, Basic + DA upto 6500/- PF would be deducted upto Rs.6500/-
2. Where, Basic + DA is more than 6500/- PF would be deducted on Rs.6500/- or on the whole Basic, as per company policy.
Employee once enrolled in a company under PF Scheme cannot opt out of the Scheme even if his Basic is incremented. He can only opt out of the PF Scheme when he joins a new company where his Basic + DA is more than 6500/-. For opting out he needs to fill Form 11. No other procedure involved.
Here, Parul has rightly mentioned the benefits of continuing PF , hence , in my view also PF should be continued by transferring the funds.
Hope this clear your doubts. Pls feel free to write back.
From India, Thana
Let me try to clarify your doubts.
Following is the general checklist you can follow:
Minimum Wages:
1. Check the Minimum Wages applicable to your state for Un-Skilled - Semi-Skilled - Skilled employees.
2. Check the Basic + DA given to employees as per their skill
If Minimum Wages Act is not followed, following steps to be taken:
a.) For employees drawing Gross Salary less than the minimum wages:
Basic + DA should be equal to Gross Salary i.e no bifurcation in the salary possible.
E.g Employee Gross is Rs.2500/- (below minimum wages) hence the Basic + DA = Rs. 2500/-
PF Applicability: Rs. 2500/-
b.) Take necessary steps to hike the salary as per minimum wages.
For employees whose Gross Salary is high but Basic + DA is not as per Minimum Wages:
b.) Restructure the Salary as we cannot bifurcate the Minimum Wages.
E.g : Basic + DA = Amount equal to or more than Minimum Wages
Other Allowances = Remaining Amount
(You can add Allowances as per the need be)
PF Applicability:
1. Where, Basic + DA upto 6500/- PF would be deducted upto Rs.6500/-
2. Where, Basic + DA is more than 6500/- PF would be deducted on Rs.6500/- or on the whole Basic, as per company policy.
Employee once enrolled in a company under PF Scheme cannot opt out of the Scheme even if his Basic is incremented. He can only opt out of the PF Scheme when he joins a new company where his Basic + DA is more than 6500/-. For opting out he needs to fill Form 11. No other procedure involved.
Here, Parul has rightly mentioned the benefits of continuing PF , hence , in my view also PF should be continued by transferring the funds.
Hope this clear your doubts. Pls feel free to write back.
From India, Thana
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