Dear Seniors,
I want to know that is PF compulsory for all the employees in a company with more than 20 employees.
1)For a person with less than 6500 besic n' da
2)For a person with 6500 + basic +da.
if any employee from above 2 does not wish to go for PF is it fine or is compulsory?
:?:
From India, Pune
I want to know that is PF compulsory for all the employees in a company with more than 20 employees.
1)For a person with less than 6500 besic n' da
2)For a person with 6500 + basic +da.
if any employee from above 2 does not wish to go for PF is it fine or is compulsory?
:?:
From India, Pune
Pls see below the EPFO coverage rules.
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act statutorily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number
From India, Lucknow
604Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act statutorily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number
From India, Lucknow
Dear ashok,
If any employee in your organisation, earned basic salary less then 6500 PM then you have to deduct EPF @ 12.00 % from his salary and your company have to contribute 13.61 % on his salary.
But if basic salary more then 6500 PM then its not compulsory to deduct EPF but employee can wish to deduct then you have to deducted and also do the contribution on his salary.
Regards,
Mohnish Thacker.
From India, Mumbai
If any employee in your organisation, earned basic salary less then 6500 PM then you have to deduct EPF @ 12.00 % from his salary and your company have to contribute 13.61 % on his salary.
But if basic salary more then 6500 PM then its not compulsory to deduct EPF but employee can wish to deduct then you have to deducted and also do the contribution on his salary.
Regards,
Mohnish Thacker.
From India, Mumbai
If a NEW employee, drawing a pf qualifying wage ( Basic+DA) of more than Rs.6500/- he need not be covered under the scheme and he is called an exempted employee.
But If an employee is enrolled as a PF member when his PF qualifying wage was lesser than or equal to Rs.6500/ and subsequently his salary is increased to more than 6500, then he should be continued to be a member.
The act or the PF authority will not object if the management wants to cover all the employees under the scheme irrespective of their salary.
The Act or the PF authority will not object if the management wants to contribute PF contribution for all the employees up to Rs.6500/- , even if they draw more than 6500/-
For the above special cases we may have to get some declaration/ application as applicable.
Sridharan
From India, New Delhi
But If an employee is enrolled as a PF member when his PF qualifying wage was lesser than or equal to Rs.6500/ and subsequently his salary is increased to more than 6500, then he should be continued to be a member.
The act or the PF authority will not object if the management wants to cover all the employees under the scheme irrespective of their salary.
The Act or the PF authority will not object if the management wants to contribute PF contribution for all the employees up to Rs.6500/- , even if they draw more than 6500/-
For the above special cases we may have to get some declaration/ application as applicable.
Sridharan
From India, New Delhi
Dear ashok,
If any employee in your organisation, earned basic salary less then 6500 PM then you have to deduct EPF @ 12.00 % from his salary and your company have to contribute 13.61 % on his salary.
But if basic salary more then 6500 PM then its not compulsory to deduct EPF but employee can wish to deduct then you have to deducted and also do the contribution on his salary.
Regards,
Mohnish Thacker.
As refer to above points; if the basic salary of an employee is more than 6500 in that case employer and employee is liable for the PF contribution till the limit of Rs. - 6500/-
Thanks & Regards,
Rakesh Kashyap,
If any employee in your organisation, earned basic salary less then 6500 PM then you have to deduct EPF @ 12.00 % from his salary and your company have to contribute 13.61 % on his salary.
But if basic salary more then 6500 PM then its not compulsory to deduct EPF but employee can wish to deduct then you have to deducted and also do the contribution on his salary.
Regards,
Mohnish Thacker.
As refer to above points; if the basic salary of an employee is more than 6500 in that case employer and employee is liable for the PF contribution till the limit of Rs. - 6500/-
Thanks & Regards,
Rakesh Kashyap,
my question is if an employee existing in PF account after completing 2-3 months we want to reduce his basic. Is it possible or not
From India, Hyderabad
From India, Hyderabad
no it is not possible. it ammounts to punishement and it is difficult to reduce the basic ammount.
From India, Bangalore
From India, Bangalore
Dear Rakesh,
Take 1 example as below.
Suppose Mr.A Working in a company wid basic salary of Rs.6000 at the time of joining. So, company have to deduct PF and contribute the same because his salary less then 6500. After 1 year his salary increase and comes to Rs. 8000. in that case employer is liable to deduct PF and contribute because he is already in PF at the time of joining.So, It's not possible to stop to deduct PF from his salary untill and unless he is resign from his job. But there is a one option open for them. Employer can deduct PF only on Amount of Rs. 6500 if employee agree for dat otherwise employer deduct PF on whole salary i.e- Rs. 8500.
Now Suppose Mr.A Working in a company wid basic salary of Rs.8000 at the time of joining, In dat case if employee is agree for PF deduction then company have to deducted pf on 6500 or whole amount of Rs.8000, it's up to both the party.And employee do not want to deduct PF then it's not compulsory to deduct PF on his salary b'coz his salary is more then 6500.
I hope from u can understand from the above example.
Regards,
Mohnish Thacker.
From India, Mumbai
Take 1 example as below.
Suppose Mr.A Working in a company wid basic salary of Rs.6000 at the time of joining. So, company have to deduct PF and contribute the same because his salary less then 6500. After 1 year his salary increase and comes to Rs. 8000. in that case employer is liable to deduct PF and contribute because he is already in PF at the time of joining.So, It's not possible to stop to deduct PF from his salary untill and unless he is resign from his job. But there is a one option open for them. Employer can deduct PF only on Amount of Rs. 6500 if employee agree for dat otherwise employer deduct PF on whole salary i.e- Rs. 8500.
Now Suppose Mr.A Working in a company wid basic salary of Rs.8000 at the time of joining, In dat case if employee is agree for PF deduction then company have to deducted pf on 6500 or whole amount of Rs.8000, it's up to both the party.And employee do not want to deduct PF then it's not compulsory to deduct PF on his salary b'coz his salary is more then 6500.
I hope from u can understand from the above example.
Regards,
Mohnish Thacker.
From India, Mumbai
dear if an organisdation have more than 20 employees than PF coverage is must. regards j s malk
From India, Delhi
From India, Delhi
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Compulsory Detailes PF withdrawal Form.xls
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