What is the criteria to contribute 10% PF and what is the disadvantages (If any). Kindly discuss.
From India, Kolkata
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4From India, Kolkata
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please see attached govt. circulated Contribution PF Rate 10% & 12 %
From India, New Delhi
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From India, New Delhi
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Hi,
If your organization employs fewer than 20 employees (along with certain other prerequisites as per the EPFO rules), the contribution rate from both the employee and the employer is limited to 10%. Out of the employer's contribution of 12% or 10% (as the situation stands), 8.33% is directed to the Employees' Pension Scheme.
From India, Madras
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If your organization employs fewer than 20 employees (along with certain other prerequisites as per the EPFO rules), the contribution rate from both the employee and the employer is limited to 10%. Out of the employer's contribution of 12% or 10% (as the situation stands), 8.33% is directed to the Employees' Pension Scheme.
From India, Madras
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Thanks, Lakshminarayanan Ji.
If a very old establishment had 20 or more employees in 1980, but later the scale of operations was reduced. In 1990 onwards, it had 15-16 employees (always less than 20), and then further reduced to less than 10 employees, what contribution rate would apply - 10% or 12%? Besides, if the employee strength is less than 20, what are the other prerequisites as per EPFO rules? Kindly elaborate.
Regards.
From India, Bikaner
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If a very old establishment had 20 or more employees in 1980, but later the scale of operations was reduced. In 1990 onwards, it had 15-16 employees (always less than 20), and then further reduced to less than 10 employees, what contribution rate would apply - 10% or 12%? Besides, if the employee strength is less than 20, what are the other prerequisites as per EPFO rules? Kindly elaborate.
Regards.
From India, Bikaner
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Experts, kindly share your opinion in this matter. Thanks.
From India, Bikaner
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From India, Bikaner
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In 1980, the employee strength of the organization was more than 20, and hopefully, the organization was paying PF contribution at a higher % limit (probably not 12% at that time but some other %). Subsequently, the manpower has come down because of scaling down of the business.
With the years to go, % of contribution has been changed, and if the organization had been contributing at a higher limit (if not paid even once, it had been started paying at a higher % - it is non-compliance), now the contribution % will be 12% even if there is one member.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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With the years to go, % of contribution has been changed, and if the organization had been contributing at a higher limit (if not paid even once, it had been started paying at a higher % - it is non-compliance), now the contribution % will be 12% even if there is one member.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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Thanks, Mr. S K Bandyopadhyay Ji for the reply. Sir, there was a cut-off date notified in 1996 or 1997 (I think most probably it was 22/9/1997), and then, the rate of 10% was applicable to those employing fewer than 20 persons as of that date. As such, it applied to those who earlier were paying at 8.33%. (The rate of 12% was applied to those who earlier were paying 10% instead of 8.33%).
Could you please check and interpret that notification to confirm or disapprove this observation, Sir? If the strength, notwithstanding the number of employees at the time of coverage in 1996, was less than 20, then would 10% apply or not? Regards.
From India, Bikaner
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Could you please check and interpret that notification to confirm or disapprove this observation, Sir? If the strength, notwithstanding the number of employees at the time of coverage in 1996, was less than 20, then would 10% apply or not? Regards.
From India, Bikaner
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Provident Fund - Excluded Employee - Definition.pdf