Hi Everyone,
I am a newbie to this site as a member. However, I do follow threads on needs basis. Today is the day when i really need help from fellow members.Following are the questions i have related to PF
I am an employer with more than 20 employees working for my SMALL establishment:
Q1. Do we have to pay PF to contract based employees as well?
Q2. Can full time employees drawing a basic salary more than 6500 be exempted from paying PF?
Q3. If answer to Question2 is YES then do i have to add the name of any new employee joining the organization in ECR and show PF contribution as zero? or there is no need to show? simply show the existing employees drawing PF amount ?
The reason why i am asking these questions are because I would like to learn the tricks of the trade from beginning itself and apply on my own.
Thanks,
Atul
From India, Delhi
2I am a newbie to this site as a member. However, I do follow threads on needs basis. Today is the day when i really need help from fellow members.Following are the questions i have related to PF
I am an employer with more than 20 employees working for my SMALL establishment:
Q1. Do we have to pay PF to contract based employees as well?
Q2. Can full time employees drawing a basic salary more than 6500 be exempted from paying PF?
Q3. If answer to Question2 is YES then do i have to add the name of any new employee joining the organization in ECR and show PF contribution as zero? or there is no need to show? simply show the existing employees drawing PF amount ?
The reason why i am asking these questions are because I would like to learn the tricks of the trade from beginning itself and apply on my own.
Thanks,
Atul
From India, Delhi
1. All employees drawing lessthan Rs 6500 are covered. If the contractor has a code number, he will recover and deposit. However you are liable as a Principal employer
2 Employees joining above Rs 6500 need not be covered, Employees joined with you for less than Rs 6500 and susequently crossed Rs 6500 will continue to be covered However the contribution can be restricted upto Rs 6500
For definition of what are the allowances to be included for Rs 6500, kindly take an advice locally. That is a different subject
3. I am not sure about ECR. I think you do not need to show the names of non member
Thanks
Sivasankaran
From India, Chennai
2 Employees joining above Rs 6500 need not be covered, Employees joined with you for less than Rs 6500 and susequently crossed Rs 6500 will continue to be covered However the contribution can be restricted upto Rs 6500
For definition of what are the allowances to be included for Rs 6500, kindly take an advice locally. That is a different subject
3. I am not sure about ECR. I think you do not need to show the names of non member
Thanks
Sivasankaran
From India, Chennai
20 or more persons are engaging and paying the salary to them under the company roll direct or indirect the company should covered under the EPF Act P. Xavier Raj
From India, Pondicherry
From India, Pondicherry
Dear Sivasankaran & Xavier ,
Thanks for your response.
Regarding question now 3: If i do not show the name of the new employees in the ECR joining above basic salary of 6500/- then should i just get the form 11 signed by them and keep with my records for future reference which indicates that these employees have been exempted for paying PFs.
Do i have to send a copy of these new joinees or Form 11 to EPF office as well? Should i get the form 2 as well filled from them or Form 2 is simply meant for employees who will be contributing for PF?
Many thanks for your help.
Regards,
Atul
From India, Delhi
Thanks for your response.
Regarding question now 3: If i do not show the name of the new employees in the ECR joining above basic salary of 6500/- then should i just get the form 11 signed by them and keep with my records for future reference which indicates that these employees have been exempted for paying PFs.
Do i have to send a copy of these new joinees or Form 11 to EPF office as well? Should i get the form 2 as well filled from them or Form 2 is simply meant for employees who will be contributing for PF?
Many thanks for your help.
Regards,
Atul
From India, Delhi
Dear Mr.Atul,
You need not send the Form 11 to EPF office. But confirm that the employee has not been covered previously under EPF and if was a member, has withdrawn the full amount, including Pension Fund. If the case is not so, then they also should be covered under the Act.
As you said, Form 2 is simply meant for those who are to contribute to EPF.
Regards,
Mohan.
Note: Any one reading this may please advise whether my statement is correct.
From India, Erode
You need not send the Form 11 to EPF office. But confirm that the employee has not been covered previously under EPF and if was a member, has withdrawn the full amount, including Pension Fund. If the case is not so, then they also should be covered under the Act.
As you said, Form 2 is simply meant for those who are to contribute to EPF.
Regards,
Mohan.
Note: Any one reading this may please advise whether my statement is correct.
From India, Erode
Even if the employee was earlier a member in some other organisation, it is not mandatory to cover him or her in the new organisation, if his or her salary is more than 6500 provided that in the new organisation they do not cover employees drawing more than 6500.
Sivasankaran
From India, Chennai
Sivasankaran
From India, Chennai
It is mandatory to covered PF for earlier member. If any one resigned and joined to the new organisation at the time his basic +DA more than 6,500 /- he is mandatory to covered PF. In case there is no PF contribution from the previous organisation at the time of joining his salary more than 6,500/- we can collect declaration. This case is not mandatory to cover PF.
P. Xavier Raj
From India, Pondicherry
P. Xavier Raj
From India, Pondicherry
Raj,
It is very simple.
If your joining with new organization means you are new member PF member in the new the organization.
Depending upon the new org policy, If they are paying PF for all (including More than 6500 ceiling) then they can extend and it is not mandatory.
They can stop contributing towards PF if the new joinee Basic + Da is more than 6500/-
Still any doubts.
Regards,
Ramana, Coke
From India
It is very simple.
If your joining with new organization means you are new member PF member in the new the organization.
Depending upon the new org policy, If they are paying PF for all (including More than 6500 ceiling) then they can extend and it is not mandatory.
They can stop contributing towards PF if the new joinee Basic + Da is more than 6500/-
Still any doubts.
Regards,
Ramana, Coke
From India
Dear Sir,
In case of persons drawing morethan Rs.6500/-, if he is already a member of PF and contributing
in earlier concern and joins in your organization, continue his contributions by deducting on max.
amount of wages of Rs.6500/. For this you have to take proof.
Otherwise, he will go out of purview of the Act.Contract workers are also to be covered by the contractor
or by you if he is not covered.
D.Gurumurthy
LL.HR&IR Consultant,
Hyderabad.
From India, Hyderabad
In case of persons drawing morethan Rs.6500/-, if he is already a member of PF and contributing
in earlier concern and joins in your organization, continue his contributions by deducting on max.
amount of wages of Rs.6500/. For this you have to take proof.
Otherwise, he will go out of purview of the Act.Contract workers are also to be covered by the contractor
or by you if he is not covered.
D.Gurumurthy
LL.HR&IR Consultant,
Hyderabad.
From India, Hyderabad
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls