If a director of a private limited company (holding more than 1% stake), who was non-salaried (remuneration paid irregularly), was registered in the PF and contributions have been deducted. When the director's stake is reduced to 0%, but they would still be paid remuneration irregularly (without a set pattern), can PF deposits be stopped.
I would appreciate it if any experts could share their contact number to discuss this important information that is required.
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I would appreciate it if any experts could share their contact number to discuss this important information that is required.
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See, prima facie, a Director is an agent of the company. If you are paying anything above the sitting fees, that is the director's remuneration. Consequently, the director becomes an employee of the company as they are then working more than what is expected of them as a director, for which only sitting fees are paid. Therefore, if someone is paid any remuneration, they are an employee, regardless of being a director. If you have paid that person remuneration and they are covered under PF, you need to deduct and submit PF.
For contact information, please visit the site in the footnote and book a free labor law checkup with us. It is a 24x7 line.
From India, Kolkata
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186For contact information, please visit the site in the footnote and book a free labor law checkup with us. It is a 24x7 line.
From India, Kolkata
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Thank you for your response. My query is a bit twisted as this director is not paid any regular wages. It's an irregular amount spread across the year. Now, when depositing PF, we have to show monthly gross income, which in this case is not set. So, if this director is willing, can we opt him out of monthly PF contribution (as remuneration is above the minimum PF limit if calculated yearly)?
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