Respected All,
What is Rule if any company want to discontinue the PF contribution of Employee's whose Basic salary is above 6500.
is to take resignation & then rejoin them, or any other form for that.
Thanks & Regards
Deepak Awasthi
From India, Lucknow
What is Rule if any company want to discontinue the PF contribution of Employee's whose Basic salary is above 6500.
is to take resignation & then rejoin them, or any other form for that.
Thanks & Regards
Deepak Awasthi
From India, Lucknow
2. EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
SECTION HEADING
PROVISION
2.1
Scope
To all establishments with 20 or more employees. Employees contribution upto a Salary (Basic + DA) less than or equal to Rs. 6500/- ; Salary (Basic + DA) <=6500
2.2
Contribution
*Employer's share
8.33%-Pension; 3.67%-PF; 0.5%-EDLI.
1.10% or Rs.5, whichever is high, for administration of PF;
0.01% or Rs.2, whichever is high, for administration of EDLI;
*Employee's share
12%-PF
*Contribution to be deposited within 15 days through challan
2.3
Returns
*Monthly- within 25 days (Form 3A)
*Annual- within 30 days (Form 6A)
*Return of membership, showing addition /deletion in members with details within 15 days of the close of every month (Form 9 / 5)
2.4
Registers
*Eligibility Register: to record the particulars of every employee eligible to become a member of PF and the number of working days during each month
*PF Register: in the form of contribution cards for each employee
*PF Ledger: this ledger contains the total monthly contributions, withdrawals from the account, repayment of loans and balance at the end of each month
*Inspection Book: to record the observations of an Inspector on his visit to the establishment
From India, Nagpur
12SECTION HEADING
PROVISION
2.1
Scope
To all establishments with 20 or more employees. Employees contribution upto a Salary (Basic + DA) less than or equal to Rs. 6500/- ; Salary (Basic + DA) <=6500
2.2
Contribution
*Employer's share
8.33%-Pension; 3.67%-PF; 0.5%-EDLI.
1.10% or Rs.5, whichever is high, for administration of PF;
0.01% or Rs.2, whichever is high, for administration of EDLI;
*Employee's share
12%-PF
*Contribution to be deposited within 15 days through challan
2.3
Returns
*Monthly- within 25 days (Form 3A)
*Annual- within 30 days (Form 6A)
*Return of membership, showing addition /deletion in members with details within 15 days of the close of every month (Form 9 / 5)
2.4
Registers
*Eligibility Register: to record the particulars of every employee eligible to become a member of PF and the number of working days during each month
*PF Register: in the form of contribution cards for each employee
*PF Ledger: this ledger contains the total monthly contributions, withdrawals from the account, repayment of loans and balance at the end of each month
*Inspection Book: to record the observations of an Inspector on his visit to the establishment
From India, Nagpur
Mr. Deepak,
Kindly Note: The above information is given by taking wages upto a maximum of Rs.6500 towards wage (basic+DA). Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10,000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer ’ s share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees ’ Pension Fund.
Hope this wil work for you.
Thanks & Regards,
C. Bhushan Sharma
From India, Nagpur
Kindly Note: The above information is given by taking wages upto a maximum of Rs.6500 towards wage (basic+DA). Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10,000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer ’ s share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees ’ Pension Fund.
Hope this wil work for you.
Thanks & Regards,
C. Bhushan Sharma
From India, Nagpur
Dear All, My query is that can we(company) stop the PF Contribution if in the period of time his (basic+DA) become greator than 6500. Thanks & Regards Deepak Awasthi
From India, Lucknow
From India, Lucknow
dear deepak
once he become member of PF And now his basic has increased from 6500 than also u can not stop his contribution.he has to be member of PF till he is working with you.
as u mentined to take resignation and ask to do rejoining,if u ask legally than u should
continue to deduct his PF on same number after rejoining.
dear what is form 11 of PF ? it is form on which we are taking declaration from new employee at the time of joining that he was not member of PF in previous organisation.
so what will be condition here.
tks
js malik
From India, Delhi
once he become member of PF And now his basic has increased from 6500 than also u can not stop his contribution.he has to be member of PF till he is working with you.
as u mentined to take resignation and ask to do rejoining,if u ask legally than u should
continue to deduct his PF on same number after rejoining.
dear what is form 11 of PF ? it is form on which we are taking declaration from new employee at the time of joining that he was not member of PF in previous organisation.
so what will be condition here.
tks
js malik
From India, Delhi
Hi,
Rightly mentioned by Mr. Malik, once an employee becomes a member of PF, the contribution has to be continued even when the basic salary increases then Rs. 6,500/- Your suggestion of resigning the employee & then showing it as joining will suffice only if he is idle for 2 months. Form 11 mentions the same thing that the employee has not been a member of PF in his previous organization.
Regards,
Hiral
From India, Ahmedabad
Rightly mentioned by Mr. Malik, once an employee becomes a member of PF, the contribution has to be continued even when the basic salary increases then Rs. 6,500/- Your suggestion of resigning the employee & then showing it as joining will suffice only if he is idle for 2 months. Form 11 mentions the same thing that the employee has not been a member of PF in his previous organization.
Regards,
Hiral
From India, Ahmedabad
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