Hi,
It will be great if you could advise something to get rid of PF.
Please note: Total employees staff – 30 and more than 18 employees are drawing less then 15000 per month.
Almost all sales employees are getting DA of Rs. 125 to 150 per day, hence it comes to 125*25= 3125 & 150*25=3750 so if we calculate gross salary 8000+ DA 3125 so it comes to 11125. If will pay Gross salary as 11125 then to Basic is coming 4450 as per 40% of Gross salary.
If we make Basic 60% of gross then it comes to 6675 so how will calculate H.R.A, Conveyance, Education, Medical Allowance, LTA and Other Allowance?
If I am putting as Basic – 60% / HRA – 10% / Conveyance – 10% / Education – 10% / Progressive Allowance – 10% so basic of all sales employees are more then 6675, then we are eligible for Provident fund or not? If yes, then is there any way to get rid of PF?
Is it like that if we have more then 20 employees in company then we are eligible for PF?
Please do let me know the advantage &
From India, Mumbai
It will be great if you could advise something to get rid of PF.
Please note: Total employees staff – 30 and more than 18 employees are drawing less then 15000 per month.
Almost all sales employees are getting DA of Rs. 125 to 150 per day, hence it comes to 125*25= 3125 & 150*25=3750 so if we calculate gross salary 8000+ DA 3125 so it comes to 11125. If will pay Gross salary as 11125 then to Basic is coming 4450 as per 40% of Gross salary.
If we make Basic 60% of gross then it comes to 6675 so how will calculate H.R.A, Conveyance, Education, Medical Allowance, LTA and Other Allowance?
If I am putting as Basic – 60% / HRA – 10% / Conveyance – 10% / Education – 10% / Progressive Allowance – 10% so basic of all sales employees are more then 6675, then we are eligible for Provident fund or not? If yes, then is there any way to get rid of PF?
Is it like that if we have more then 20 employees in company then we are eligible for PF?
Please do let me know the advantage &
From India, Mumbai
Since 30 employees are working, you must get PF account number.
Regarding dividing of gross salary into different components, one point is very important that your basic salary on which you need to contribute PF should not be less than the minimum wages (basic+special allowance) as declared by the state govt.
regards,
kamal
From India, Pune
173Regarding dividing of gross salary into different components, one point is very important that your basic salary on which you need to contribute PF should not be less than the minimum wages (basic+special allowance) as declared by the state govt.
regards,
kamal
From India, Pune
Dear Mr. Kamal,
Thanks for your response. If sales employee's per month salary is 8000 & per month daily allowance is 3125 pm so if we calculate 8000+3125 = 11125 & if basic we calculate as 60% of 11125 = 6675 & as per above calculation everyone's salary will be more then 6675. So do we have to start PF system?
Because what I think is if we are not starting PF system now then to will have to start ESIC if I calculate their salary + DA because many of the employees are getting less then 15000 pm and if not today then after 3-5months we might have to start PF system as we are planning to hire employees and the nos of hiring may goes up to 70 – 100 employees.
Please advise, if we will have staff of 50 to 100 employees, where in everyone’s basic salary is more then 6500 pm but less then 15000 gross per month, then if basic is more then 6500 then to we are liable to start PF or is there any process wherein we can get rid of PF system?
Kindly advise and share your view.
Awaitin
From India, Mumbai
Thanks for your response. If sales employee's per month salary is 8000 & per month daily allowance is 3125 pm so if we calculate 8000+3125 = 11125 & if basic we calculate as 60% of 11125 = 6675 & as per above calculation everyone's salary will be more then 6675. So do we have to start PF system?
Because what I think is if we are not starting PF system now then to will have to start ESIC if I calculate their salary + DA because many of the employees are getting less then 15000 pm and if not today then after 3-5months we might have to start PF system as we are planning to hire employees and the nos of hiring may goes up to 70 – 100 employees.
Please advise, if we will have staff of 50 to 100 employees, where in everyone’s basic salary is more then 6500 pm but less then 15000 gross per month, then if basic is more then 6500 then to we are liable to start PF or is there any process wherein we can get rid of PF system?
Kindly advise and share your view.
Awaitin
From India, Mumbai
Employee getting basic+DA more than 6500 can be exempted from PF contribution. But if any of your employee is having PF account no. (was getting PF in his previous employment) then you have to continue the PF contribution.
ESIC is 100% applicable in your case as all employees are getting salary below 15000/-.
But above all this I would like to know why are you trying to escape from your responsibility to contribute in PF fund which is to secure the future of your employees. Provident fund is designed to provide the retiring individual to live with dignity and security.
Do not forget that employees are most valuable asset and because of the employees an organization exists.
regards,
Kamal
From India, Pune
ESIC is 100% applicable in your case as all employees are getting salary below 15000/-.
But above all this I would like to know why are you trying to escape from your responsibility to contribute in PF fund which is to secure the future of your employees. Provident fund is designed to provide the retiring individual to live with dignity and security.
Do not forget that employees are most valuable asset and because of the employees an organization exists.
regards,
Kamal
From India, Pune
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