Dear Seniors,
Please clarify my query. My present employer is into "Project Management Consultancy", where the manpower is 40 as of today. Regarding PF applicability in an organization, when the manpower exceeds 20, could you please confirm whether the company is required to implement the PF scheme, considering all employees' salaries are above 10K (Gross) with a minimum salary of 7K (Gross)? There are only 5 employees whose 'Basic salary' is 6500/-. The rest of the employees have a basic salary above 6500/-.
Could you also inform me if the company might face any future problems or penalties with the above situation? The same scenario applies to ESI as well. The same 5 employees have gross salaries up to 15K.
Thank you,
Jyothi
From India, Hyderabad
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Please clarify my query. My present employer is into "Project Management Consultancy", where the manpower is 40 as of today. Regarding PF applicability in an organization, when the manpower exceeds 20, could you please confirm whether the company is required to implement the PF scheme, considering all employees' salaries are above 10K (Gross) with a minimum salary of 7K (Gross)? There are only 5 employees whose 'Basic salary' is 6500/-. The rest of the employees have a basic salary above 6500/-.
Could you also inform me if the company might face any future problems or penalties with the above situation? The same scenario applies to ESI as well. The same 5 employees have gross salaries up to 15K.
Thank you,
Jyothi
From India, Hyderabad
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Hi jyothi, This is prasad. I am working as a HR Manager in Indian Airlines. Is your company limited or private limited? then i will tell you my answer. until then bye Jyothi.
From India, Belgaum
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From India, Belgaum
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Dear Jyothi, Definately your company under the PF coverage; it does’nt matter that the wages payment exceeds the ceiling of Rs 6500.00. There may be a return of NIL PF to the department.
From India, Jaipur
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35From India, Jaipur
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Definately your company under the PF coverage; it does’nt matter that the wages payment exceeds the ceiling of Rs 6500.00. There may be a return of NIL PF to the department.
From India, Belgaum
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From India, Belgaum
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Jyothi,
Definitely your company cover under PF Act, It doesn’t matter gross salary exceed 15000 Rs., PF is Calculate on Basic only, if employees basic salary exceed 6500 than you shall be submit NIL return to PF office.
With Regards
Jignesh Sisodiya
From India, Ahmadabad
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Definitely your company cover under PF Act, It doesn’t matter gross salary exceed 15000 Rs., PF is Calculate on Basic only, if employees basic salary exceed 6500 than you shall be submit NIL return to PF office.
With Regards
Jignesh Sisodiya
From India, Ahmadabad
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Hi Anurag, Jignesh here.., How ru, where are you working?? & what is your position there? With Regards Jignesh
From India, Ahmadabad
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From India, Ahmadabad
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Dear friends,
In case the employee concerned is willing to continue PF membership even after reaching 6.5k, the contribution has to be on 6.5k only, and no PF contribution on the rest amount of wages is required to be deposited.
From India, Calcutta
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In case the employee concerned is willing to continue PF membership even after reaching 6.5k, the contribution has to be on 6.5k only, and no PF contribution on the rest amount of wages is required to be deposited.
From India, Calcutta
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Hi all,
The answer you are all sharing is completely direct the guy who is asking the question with doubt. Once your employment strength crosses 20+, then your company will be liable to cover the PF for employees.
In case some employees are receiving a basic salary of more than 6500, you can consider the employee as an exempted employee after they have submitted Form 11. For employees with a basic salary below 6500/-, you must provide coverage from the day the 20th employee is crossed.
If your covered employee's basic salary exceeds 6500, then you cannot consider that employee as exempted. You must continue to pay up to 6500/-
Ganesh
HR & Legal Consultants Pvt Ltd
9962603978
From India, Madras
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The answer you are all sharing is completely direct the guy who is asking the question with doubt. Once your employment strength crosses 20+, then your company will be liable to cover the PF for employees.
In case some employees are receiving a basic salary of more than 6500, you can consider the employee as an exempted employee after they have submitted Form 11. For employees with a basic salary below 6500/-, you must provide coverage from the day the 20th employee is crossed.
If your covered employee's basic salary exceeds 6500, then you cannot consider that employee as exempted. You must continue to pay up to 6500/-
Ganesh
HR & Legal Consultants Pvt Ltd
9962603978
From India, Madras
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Dear Jyothi,
First, go through Section 16 of the Provident Fund Act. It states that there is an exemption for establishments that have not completed three years from the date of establishment. Please read it carefully.
Go through it once and read carefully.
Thank you.
From India, Warangal
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First, go through Section 16 of the Provident Fund Act. It states that there is an exemption for establishments that have not completed three years from the date of establishment. Please read it carefully.
Go through it once and read carefully.
Thank you.
From India, Warangal
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Hi Jyothi garu,
First thing: Can you provide the PF Registration No.?
If it is the case, you should deduct PF from your Employees at 12% and then pay PF to the PF department at 13.61% from the employer's side. The total PF amount to be paid to the PF department is 25.61%. It is compulsory for you to do this.
Thank you. If you have any queries, please contact me or email me at jaykumar336@hotmail.com.
With Regards,
JAY - 9676960965
From India, Hyderabad
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First thing: Can you provide the PF Registration No.?
If it is the case, you should deduct PF from your Employees at 12% and then pay PF to the PF department at 13.61% from the employer's side. The total PF amount to be paid to the PF department is 25.61%. It is compulsory for you to do this.
Thank you. If you have any queries, please contact me or email me at jaykumar336@hotmail.com.
With Regards,
JAY - 9676960965
From India, Hyderabad
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