I have some questions related to PF:
1) Co already contributing employer share on Rs 6500 & above. Can they limit their contribution to Rs 6500?
If it company contribtion is continuing, company can not stop it. But they have optuion with new joining under para 34 of PF Rules
2) In pt No 01 can the company totally stop paying contribution since the employees are anyway above Rs 6500?
No. If the PF membership is continuing it cannot stop.
3) If Company is paying as per Pt no 1 for all old employees, can it exclude new employees (drawing above Rs 6500) from liability.
Yes they can do , refere para 34 PF rules
4) If answer to Pt 1,2,3 is YES then what formalities should be done to ensure compliance?
Would appreciate a point by point reply for bringing in clarity
attribution https://www.citehr.com/460492-pf-lia...#ixzz2TcFdsEBb
1) Co already contributing employer share on Rs 6500 & above. Can they limit their contribution to Rs 6500?
If it company contribtion is continuing, company can not stop it. But they have optuion with new joining under para 34 of PF Rules
2) In pt No 01 can the company totally stop paying contribution since the employees are anyway above Rs 6500?
No. If the PF membership is continuing it cannot stop.
3) If Company is paying as per Pt no 1 for all old employees, can it exclude new employees (drawing above Rs 6500) from liability.
Yes they can do , refere para 34 PF rules
4) If answer to Pt 1,2,3 is YES then what formalities should be done to ensure compliance?
Would appreciate a point by point reply for bringing in clarity
attribution https://www.citehr.com/460492-pf-lia...#ixzz2TcFdsEBb
In some cases where the CTC is applicable companies do not pay the partial amount from their own but they deduct and deposit the employer part as well as employee part from the CTC of the employee.
From India, Lucknow
183From India, Lucknow
Dear Madhu Sir, Please let me know that if employee was a member of pf in his previous organization and in new organization employer is liable to give membership if employee desires. Is that possible if organization does not want to deduct his pf share although he was a member already?
From India, Shahkot
From India, Shahkot
A break up of salary with employer’s contribution to PF shown as cost to company is common now a days but deducting both the share from the salary of employee is not legal.
As discussed, an employer is expected (I can only say that it is expected from a prudent employer who wishes to follow all laws) to give coverage to a new employee who has been a member of PF with the previous employer even if his PF qualifying salary at the time of joining exceeds Rs 6500. At the same time there are employers who do not even care to give coverage even to those whose salary does not exceed Rs 6500. PF organisation can take action against them, but I am not sure if all are charged for this offence.
Madhu.T.K
From India, Kannur
As discussed, an employer is expected (I can only say that it is expected from a prudent employer who wishes to follow all laws) to give coverage to a new employee who has been a member of PF with the previous employer even if his PF qualifying salary at the time of joining exceeds Rs 6500. At the same time there are employers who do not even care to give coverage even to those whose salary does not exceed Rs 6500. PF organisation can take action against them, but I am not sure if all are charged for this offence.
Madhu.T.K
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls