Dear Members
I would appreciate if anyone could clarify the query.
A company is deducting PF @ 12% on full basic (Ex: Gross Salary Rs.24000, Basic Rs.12000, HRA Rs.6000, Conveyance Rs.800, special allowances Rs.5200). PF is deducted @ 12% of Rs.12000 = Rs.1440 and the same is paid by the Employer as is contribution Rs.1440. The Total Contribution for that employee is Rs.2880. Now the employees are requesting the management to reduce the maximum contribution to Rs.780 with restricted to Basic Salary of Rs.6500.
The company is willing to do the same but without changing the basic salary Rs.12000.
Now the Contribution to PF will be Rs.780+780 = 1560.
Please let us know whether the company can change to the new or it as to follow the old.
If it’s new what are rules to be followed.
If it\'s old why it\'s to be followed
Thank you very in advance
Sekar
From India, Madras
I would appreciate if anyone could clarify the query.
A company is deducting PF @ 12% on full basic (Ex: Gross Salary Rs.24000, Basic Rs.12000, HRA Rs.6000, Conveyance Rs.800, special allowances Rs.5200). PF is deducted @ 12% of Rs.12000 = Rs.1440 and the same is paid by the Employer as is contribution Rs.1440. The Total Contribution for that employee is Rs.2880. Now the employees are requesting the management to reduce the maximum contribution to Rs.780 with restricted to Basic Salary of Rs.6500.
The company is willing to do the same but without changing the basic salary Rs.12000.
Now the Contribution to PF will be Rs.780+780 = 1560.
Please let us know whether the company can change to the new or it as to follow the old.
If it’s new what are rules to be followed.
If it\'s old why it\'s to be followed
Thank you very in advance
Sekar
From India, Madras
Dear Sekar,
You can follow new contribution i.e. 780+780=1560 as the employee having basic salary more than 6500/- always has choice whether he wants deduction on his actual basic salary or on 6500/-
Regards
Pooja
From India, Hyderabad
11You can follow new contribution i.e. 780+780=1560 as the employee having basic salary more than 6500/- always has choice whether he wants deduction on his actual basic salary or on 6500/-
Regards
Pooja
From India, Hyderabad
Dear Shekhar ji,
Though you are entitled to discontinue from the remittance of the provident fund contributions in excess of Rs. 780, you are advised to take consent from all affected employees. I am attaching herewith draft of consent for you.
It is further advised to give a notice of change under 9A of ID Act, additionally.
In this regards your attention is drawn on Judgement dated 05.02.2004 of HC: Kerala in the matter - The North Malabar Gramin Bank Officers Association & Another Vs. Reserve Bank of India & Others (Case No: OP. Nos.14011 of 2001(R),17647 of 2001, 17655 of 2001,17994 of 2001 & 13968 of 2001 ).
I request other members of this forum to comment of this subject matter.
Thanks and regards.
Keshav Korgaonkar
From India, Mumbai
Though you are entitled to discontinue from the remittance of the provident fund contributions in excess of Rs. 780, you are advised to take consent from all affected employees. I am attaching herewith draft of consent for you.
It is further advised to give a notice of change under 9A of ID Act, additionally.
In this regards your attention is drawn on Judgement dated 05.02.2004 of HC: Kerala in the matter - The North Malabar Gramin Bank Officers Association & Another Vs. Reserve Bank of India & Others (Case No: OP. Nos.14011 of 2001(R),17647 of 2001, 17655 of 2001,17994 of 2001 & 13968 of 2001 ).
I request other members of this forum to comment of this subject matter.
Thanks and regards.
Keshav Korgaonkar
From India, Mumbai
Hi,
zuby.in. This website provides salary information for various IT and Finance companies in India. There are also various articles about trends in salary
as well as job search and interviewing tips.
Thanks
From India, Delhi
zuby.in. This website provides salary information for various IT and Finance companies in India. There are also various articles about trends in salary
as well as job search and interviewing tips.
Thanks
From India, Delhi
can employee having basic more than 6500 stop the contribution towards the provident fund with consent of employer.
From India, New Delhi
From India, New Delhi
Dear mohitejitendra, Answer to your query is, No. Once a member of PF, always a member of PF. He has no option to stop contribution of PF. However, his contribution can be restricted to Rs. 780/-.
From India, Mumbai
From India, Mumbai
Right Suggestion by Keshav Ji,
Employer can limit his contribution to Rs.6500 even on later stage.Please refer link which is posted by Shri Madhu https://www.citehr.com/443418-pf-con...-employer.html
Regards,
Suresh
From India, Bangalore
Employer can limit his contribution to Rs.6500 even on later stage.Please refer link which is posted by Shri Madhu https://www.citehr.com/443418-pf-con...-employer.html
Regards,
Suresh
From India, Bangalore
Dear Sekar,
Yes, it can be done and Mr. Kargaokar ji and Pooja righty advised to you. The subject matter has already been discussed earlier on CiteHR.
Since your company is already giving benefit of PF on full basic salary, it has become a service condition for the purposes of ID Act. And if your company wants to change the policy you have to apply for approval of the Labour Authorities in respect of the employees covered under the ID Act and for the other employees their consent will do. However, before changing the PF deduction pattern you have to intimate the PF commissioner and have to obtain his formal approval. You can do it legally as per various judgments cite by Mr. Kargaokar. But keep in mind there should be only one policy in this respect and that would be applicable on all the employees you cannot have two set of policy, one for old and other for new arrivals.
Pkjain
From India, Delhi
Yes, it can be done and Mr. Kargaokar ji and Pooja righty advised to you. The subject matter has already been discussed earlier on CiteHR.
Since your company is already giving benefit of PF on full basic salary, it has become a service condition for the purposes of ID Act. And if your company wants to change the policy you have to apply for approval of the Labour Authorities in respect of the employees covered under the ID Act and for the other employees their consent will do. However, before changing the PF deduction pattern you have to intimate the PF commissioner and have to obtain his formal approval. You can do it legally as per various judgments cite by Mr. Kargaokar. But keep in mind there should be only one policy in this respect and that would be applicable on all the employees you cannot have two set of policy, one for old and other for new arrivals.
Pkjain
From India, Delhi
Dear Jain ji,
I do agree with you that there should be only one policy in regards to PF deduction. In olden days I have seen uniformity in regards to benefits and facilities to employees. If there is no uniformity and there is a disparity in benefits and facilities among the employees or set of employees, it was consider as discrimination. But now a days we find flexible components of benefits and facilities. In CTC structure, in my view, one can not take a stand of discrimination.
Of course, all this depends upon how you project yourself. Also the law enforcement authority of current generation has least interest in law enforcement. Their interest is different.
From India, Mumbai
I do agree with you that there should be only one policy in regards to PF deduction. In olden days I have seen uniformity in regards to benefits and facilities to employees. If there is no uniformity and there is a disparity in benefits and facilities among the employees or set of employees, it was consider as discrimination. But now a days we find flexible components of benefits and facilities. In CTC structure, in my view, one can not take a stand of discrimination.
Of course, all this depends upon how you project yourself. Also the law enforcement authority of current generation has least interest in law enforcement. Their interest is different.
From India, Mumbai
Hi all,
I have one query .. recently i have joined a company and at the time of joining they didn't inform me about PF ,after two month they informed me that there is a pf deduction from your salary and the amount is 1,600.is this amount is illegal? because as i know PF amount would be 780 or 12% of basic of employee salary.Kindly provide me the inputs.
From India, Noida
I have one query .. recently i have joined a company and at the time of joining they didn't inform me about PF ,after two month they informed me that there is a pf deduction from your salary and the amount is 1,600.is this amount is illegal? because as i know PF amount would be 780 or 12% of basic of employee salary.Kindly provide me the inputs.
From India, Noida
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