Dear all,
One very important question: If a company has a license for PF but is only deducting PF from 20% of its employees, and they have not filled out Form 11 for any other employees at the time of joining or ever, what steps should be taken to prevent this company from being audited by the PF authorities?
Please assist me in resolving this issue as no one has provided an answer to this query from the seniors. I hope to receive a response here.
Thank you.
From India, Rajkot
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15One very important question: If a company has a license for PF but is only deducting PF from 20% of its employees, and they have not filled out Form 11 for any other employees at the time of joining or ever, what steps should be taken to prevent this company from being audited by the PF authorities?
Please assist me in resolving this issue as no one has provided an answer to this query from the seniors. I hope to receive a response here.
Thank you.
From India, Rajkot
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Dear Vipul,
If you have not filled Form 11 at the time of joining, you can do so now. There is no issue, but you should fill out Form 11 at the time of joining whenever a new employee joins the organization whose salary is more than 6500/-.
From India, Dehra Dun
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If you have not filled Form 11 at the time of joining, you can do so now. There is no issue, but you should fill out Form 11 at the time of joining whenever a new employee joins the organization whose salary is more than 6500/-.
From India, Dehra Dun
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Dear Isgaur, Gross salary or Basic? and shall I have to submit this form into pf office ?
From India, Rajkot
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From India, Rajkot
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Mr. Singh is Right. Dear Mr. Vipul, when we talk about PF then wages means Basic+DA or Basic where DA is not applicable and you do not need to submit form 11 to PF Office.
From India, Kota
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From India, Kota
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Dear Akhil ? Is DA included in PF ? and I surveyed in company.. They are including DA for Labour Category and For Staff They are deducting only on Basic Salary ? Is it possible ?
From India, Rajkot
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From India, Rajkot
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In private organisations, they rarely have DA as salary bifurcation.it found in goverment organizations. and There is no issue to follow different salary/wages bifurcation for Labour and Staff.
From India, Kota
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From India, Kota
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Dear Akhil, So what should I do now ? We have basic + Bonus Structure so What should I do ? Now I need your help as per your ans.. and another thing, we have CTC System..
From India, Rajkot
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From India, Rajkot
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First, kindly answer me that what do you understand by CTC, Gross and Net Salary??? after that i will answer..
From India, Kota
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From India, Kota
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Dear Akhil,
As per my knowledge, CTC means Cost to the Company, which includes everything where the company does not have to pay anything. Everything is deducted from the employee's salary, right?
Gross salary means including all allowances + Basic, right?
Net pay means what the employee receives after all deductions.
Please make corrections if there are any mistakes.
From India, Rajkot
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As per my knowledge, CTC means Cost to the Company, which includes everything where the company does not have to pay anything. Everything is deducted from the employee's salary, right?
Gross salary means including all allowances + Basic, right?
Net pay means what the employee receives after all deductions.
Please make corrections if there are any mistakes.
From India, Rajkot
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Cost to company (CTC) is the total cost that an employee incurs in a company. Gross Salary is the amount seen every month, but this is before any deductions. Net Salary is what an employee receives in hand after deductions (this is the take-home salary).
The relation between all three is as follows:
- Gross = CTC - Other benefits
- Net = Gross - Deductions
You will deduct PF on only Basic salary for Staff and on Basic+DA for Labour as applicable (12% of Basic+DA or 12% of Basic). ESI will be deducted from Gross (1.75% of Gross).
Company's part will be included in CTC (Gross + PF 13.61% + ESI 4.75 + Bonus, if Statutory).
From India, Kota
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The relation between all three is as follows:
- Gross = CTC - Other benefits
- Net = Gross - Deductions
You will deduct PF on only Basic salary for Staff and on Basic+DA for Labour as applicable (12% of Basic+DA or 12% of Basic). ESI will be deducted from Gross (1.75% of Gross).
Company's part will be included in CTC (Gross + PF 13.61% + ESI 4.75 + Bonus, if Statutory).
From India, Kota
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Dear Akhil, As I told you we have Basic + Bonus Salary Structure. We dont have any other allowances like, HRA, Travelling, etc... So now ?
From India, Rajkot
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From India, Rajkot
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As I told you,
You will deduct PF on only Basic salary for Staff and on Basic+DA for Labour as applicable (12% of Basic+DA or 12% of Basic).
Yes, for ESI, you will deduct 1.75% of Basic+Bonus (Gross).
From India, Kota
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You will deduct PF on only Basic salary for Staff and on Basic+DA for Labour as applicable (12% of Basic+DA or 12% of Basic).
Yes, for ESI, you will deduct 1.75% of Basic+Bonus (Gross).
From India, Kota
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Ok, sir, thanks a lot.
Last question for you: I have talked to my MD about the best salary structure, including all allowances. Could you please provide me with a suitable structure? If you don't mind, may I have your contact number?
Since I am a fresher and do not have much experience in the practical field, I would appreciate some guidance from you.
From India, Rajkot
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Last question for you: I have talked to my MD about the best salary structure, including all allowances. Could you please provide me with a suitable structure? If you don't mind, may I have your contact number?
Since I am a fresher and do not have much experience in the practical field, I would appreciate some guidance from you.
From India, Rajkot
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Dear Vipul,
At the outset, it is not clear why the company is paying PF of 20% to employees. Please let us know whether you have unexpected Provident Fund.
As regards Form No. 11, it is merely a declaration, nothing to worry about. However, your company should have a policy to enroll all employees under the coverage of The Employees' PF & Misc. Provisions Act, 1952, restricting the salary limit to Rs. 6,500/- per month per employee. For this purpose, salary means Basic + D.A. (if applicable).
Furthermore, the company should make a rule in such a manner that even if the salary exceeds Rs. 6,500/-, their membership continues, but the employer's liability remains restricted to Rs. 780/- per member per month. This type of amendment needs to be approved by the concerned Regional PF Commissioner. If you wish to have more in-depth details, you may write to me or call - 09892580408.
If there are any unexpected changes or additional information required, please feel free to reach out.
Thank you.
Best regards,
[Your Name]
From India, Mumbai
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At the outset, it is not clear why the company is paying PF of 20% to employees. Please let us know whether you have unexpected Provident Fund.
As regards Form No. 11, it is merely a declaration, nothing to worry about. However, your company should have a policy to enroll all employees under the coverage of The Employees' PF & Misc. Provisions Act, 1952, restricting the salary limit to Rs. 6,500/- per month per employee. For this purpose, salary means Basic + D.A. (if applicable).
Furthermore, the company should make a rule in such a manner that even if the salary exceeds Rs. 6,500/-, their membership continues, but the employer's liability remains restricted to Rs. 780/- per member per month. This type of amendment needs to be approved by the concerned Regional PF Commissioner. If you wish to have more in-depth details, you may write to me or call - 09892580408.
If there are any unexpected changes or additional information required, please feel free to reach out.
Thank you.
Best regards,
[Your Name]
From India, Mumbai
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