Hello, I work with a technology startup and after one year of inception we are introducing PF in our organisation.
Difficulty is communicating with employees that their CTC will attract the deduction going forward, can you please help if any any of you have shared a similar communication with employees in recent past. I want to refer this to ensure that we are in right direction.
From India, Bangalore
Difficulty is communicating with employees that their CTC will attract the deduction going forward, can you please help if any any of you have shared a similar communication with employees in recent past. I want to refer this to ensure that we are in right direction.
From India, Bangalore
How can their CTC will change? In fact their CTC is going to increase though their take home salary will decrease and that is only temporary because whatever they contribute will be available to them as an investment and along with that they would get employer's share also. Therefore, just send a circular that "effective from ....(date) our organisation has come under the coverage of EPF & MP Act and all the employees ( who come under the salary band as per PF Act or the company policy) will be contributing 12% of their salary (basic, DA etc ) to EPF. All are also informed that there will be an employer's contribution of 12% and the same will be accounted as contribution towards your Pension Fund and Provident Fund. The employees can view their Passbook periodically by visiting the website of Employee provident Fund Organisation." This will remove the doubts of employees and if anyone comes to you with any doubts or apprehensions, you can explain the benefits of provident fund, pension fund and EDLI. And stillif he is not interested, just say that we cannot work without following the law but you can decide if you want to continue here and obviously if he is not ready, just ask him to go!!! That's all. One more thing, if you hesitate to take steps now, you will not be able to proceed further because there will be a lot of hurdles and nothing would give you way thinking that yours is a start up establishment.
From India, Kannur
4250From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls