Hello Seniors!
A big dilemma I am in for now, EPFO has set a ceiling of 6500 (Above that Voluntary) while minimum wages for even unskilled employees are now close to 6400 (6362), Does employer now on the verge of getting exemption for all of his employees (Voluntary contribution)???? Either EPFO is slow with pace or Labour department exceeds & bring EPFO at a vulnerable point.
Regards,
Manish Gupta
From India, Ghaziabad
17A big dilemma I am in for now, EPFO has set a ceiling of 6500 (Above that Voluntary) while minimum wages for even unskilled employees are now close to 6400 (6362), Does employer now on the verge of getting exemption for all of his employees (Voluntary contribution)???? Either EPFO is slow with pace or Labour department exceeds & bring EPFO at a vulnerable point.
Regards,
Manish Gupta
From India, Ghaziabad
Sir,
Coverage and compliance under EPF & Misc. Provisions Act, 1952 has no relation with minimum wages as fixed in any State. Payment of wages less than minimum as fixed, is relevant only under Minimum Wages Act.
From India, Noida
Coverage and compliance under EPF & Misc. Provisions Act, 1952 has no relation with minimum wages as fixed in any State. Payment of wages less than minimum as fixed, is relevant only under Minimum Wages Act.
From India, Noida
Dear Manish ji,
It's bit hard to understand the query by me, probabily since the query is raised by Corporate HR. Still I would like to contribute to this thread within my limited understanding, Sir.
Once any employee is a member of EPF, he is continue to be a member of EPF eventhough his salary is increased to more than threshold limit.
Even in the new employment his salary is fixed above threshold limit, he is to be continued to be a member of EPF.
As stated by Harsh Kumar ji, there is no relavance of minimum wage rate to the threshold limit. You may be aware of, this threshold limit is very soon going to increase to Rs.15000. You may also be aware of what is the definition of Salary.
You need to check the correctness in your statement that the PF above the threshold limit is voluntary.
From India, Mumbai
It's bit hard to understand the query by me, probabily since the query is raised by Corporate HR. Still I would like to contribute to this thread within my limited understanding, Sir.
Once any employee is a member of EPF, he is continue to be a member of EPF eventhough his salary is increased to more than threshold limit.
Even in the new employment his salary is fixed above threshold limit, he is to be continued to be a member of EPF.
As stated by Harsh Kumar ji, there is no relavance of minimum wage rate to the threshold limit. You may be aware of, this threshold limit is very soon going to increase to Rs.15000. You may also be aware of what is the definition of Salary.
You need to check the correctness in your statement that the PF above the threshold limit is voluntary.
From India, Mumbai
Dear Manish,
Greetings for the day,
Recently EPFO is going to revised the EPF/EPS cealing form Rs.6500/- to Rs. 15000/- by order fo dated 14/07/2014. Secondly your query regarding minimum wages & Basic salary. It is true that basic salary can't be kept less than the defined time to time by the state government time to time. In the matter of EPF the deduction should be on Rs. 6362/- above than that whose basic is Rs. 15000/- get them covered under EPFO.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Greetings for the day,
Recently EPFO is going to revised the EPF/EPS cealing form Rs.6500/- to Rs. 15000/- by order fo dated 14/07/2014. Secondly your query regarding minimum wages & Basic salary. It is true that basic salary can't be kept less than the defined time to time by the state government time to time. In the matter of EPF the deduction should be on Rs. 6362/- above than that whose basic is Rs. 15000/- get them covered under EPFO.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Dear Mr. Harsh,
The basis of any compliance is wages assigned by organization. viz. Basic & Gross salary (Assigned on the basis of minimum wages act) hence the EPF is directly related to Basic+DA. what we assign a Ba+Da should not be less than a minimum wage & this Ba+Da is ground for contribution of EPF.
Dear Mr. Keshav,
My prime concern for blue collar employees who wages is just close to minimum wages, organizations have a very decent way of exempting these employees (Wages more than 6500) by misusing Form-11 under EPFO, though provision under form-11 is clearly mentioned. i.e. Employee should not have a working EPF account or he/she would have withdrawn the amount from the EPF account.
I mean to say, if Basic+Da assigned under minimum wages act is more than 6500 ( which is already for semi-skilled & skilled), would new incumbent be exempted by the provision under EPFO????
Thanks & regards,
Manish Gupta
From India, Ghaziabad
The basis of any compliance is wages assigned by organization. viz. Basic & Gross salary (Assigned on the basis of minimum wages act) hence the EPF is directly related to Basic+DA. what we assign a Ba+Da should not be less than a minimum wage & this Ba+Da is ground for contribution of EPF.
Dear Mr. Keshav,
My prime concern for blue collar employees who wages is just close to minimum wages, organizations have a very decent way of exempting these employees (Wages more than 6500) by misusing Form-11 under EPFO, though provision under form-11 is clearly mentioned. i.e. Employee should not have a working EPF account or he/she would have withdrawn the amount from the EPF account.
I mean to say, if Basic+Da assigned under minimum wages act is more than 6500 ( which is already for semi-skilled & skilled), would new incumbent be exempted by the provision under EPFO????
Thanks & regards,
Manish Gupta
From India, Ghaziabad
Quoted by Manish Gupta
Corporate -HR
I mean to say, if Basic+Da assigned under minimum wages act is more than 6500 ( which is already for semi-skilled & skilled), would new incumbent be exempted by the provision under EPFO????
__________________________________________________ __________________________________________________ ______________
Dear Mr. Manish
My answer to your above query is : NO
Please refer the recent circular of EPFO dated 14/July/14, posted on this site also. Moreover , Mr. Korgaonkar has also explained the matter which is suffice in this regard.
Thanks,
Anil Sharma
From India, Pune
Corporate -HR
I mean to say, if Basic+Da assigned under minimum wages act is more than 6500 ( which is already for semi-skilled & skilled), would new incumbent be exempted by the provision under EPFO????
__________________________________________________ __________________________________________________ ______________
Dear Mr. Manish
My answer to your above query is : NO
Please refer the recent circular of EPFO dated 14/July/14, posted on this site also. Moreover , Mr. Korgaonkar has also explained the matter which is suffice in this regard.
Thanks,
Anil Sharma
From India, Pune
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Wage-ceiling-ep f-6500-15000-ci rcular-circular .pdf