Dear Friends and Seniors,
I have a question in my mind; can anybody give a satisfactory reply to my query, please?
In Delhi, the Minimum Wages Act states that a graduate's minimum basic pay is more than 8000/- (not exactly), and the minimum wages of semiskilled workers are also not below 6500/-. Only unskilled workers fall below the 6500/- limit. The PF department says that the compulsory deduction on basic salary applies to those who are below the 6500/- basic limit.
Given the above slab, nobody is eligible for a deduction of PF (except unskilled workers). If an employer does not deduct any PF for those whose basic pay is above 6500/-, what actions can be taken against the employer?
Thanks,
Santosh Kumar
Accounts Manager
From India, New Delhi
1I have a question in my mind; can anybody give a satisfactory reply to my query, please?
In Delhi, the Minimum Wages Act states that a graduate's minimum basic pay is more than 8000/- (not exactly), and the minimum wages of semiskilled workers are also not below 6500/-. Only unskilled workers fall below the 6500/- limit. The PF department says that the compulsory deduction on basic salary applies to those who are below the 6500/- basic limit.
Given the above slab, nobody is eligible for a deduction of PF (except unskilled workers). If an employer does not deduct any PF for those whose basic pay is above 6500/-, what actions can be taken against the employer?
Thanks,
Santosh Kumar
Accounts Manager
From India, New Delhi
Dear Mr. Santosh,
If any employee is continuing to work in the same organization and already has a PF Account number, then they should be eligible for PF; we can't make exceptions from PF.
If you feel free, call me.
J.N. Modi
8527785867
From India, New Delhi
If any employee is continuing to work in the same organization and already has a PF Account number, then they should be eligible for PF; we can't make exceptions from PF.
If you feel free, call me.
J.N. Modi
8527785867
From India, New Delhi
Dear Mr. Santosh,
If the employee is willing to have PF, you can deduct it. It is not mandatory, but from the company's point of view, if we deduct the PF, it shows that the company is looking after the welfare of the employees. This way, when they leave the company, they will receive a lump sum amount for their personal use (PF returns).
If you have any doubts, please feel free to call me.
Thank you.
From India, Chennai
If the employee is willing to have PF, you can deduct it. It is not mandatory, but from the company's point of view, if we deduct the PF, it shows that the company is looking after the welfare of the employees. This way, when they leave the company, they will receive a lump sum amount for their personal use (PF returns).
If you have any doubts, please feel free to call me.
Thank you.
From India, Chennai
Thank you for replying to Mr. Siva and Modiji, but I am not entirely satisfied with your responses. I would like to inquire why the government has not revised the limit if a company is paying its staff no less than 6500/- as the basic salary to avoid PF liability. Can any action be taken against such companies under the current PF act and rules?
I am looking forward to a comprehensive response.
Thank you,
Santosh
From India, New Delhi
I am looking forward to a comprehensive response.
Thank you,
Santosh
From India, New Delhi
Dear Santosh,
To address this problem, recently Dr. G Sanjeeva Reddy, INTUC president and member of Rajya Sabha, wrote a letter to the Prime Minister requesting an amendment in the EPF Act and the Bonus Act to include workmen/employees earning between Rs. 15,000 to Rs. 20,000. The only amendment required in the Acts is the solution to your query!
Best Wishes,
Yogesh Jalota
From India, Jalandhar
To address this problem, recently Dr. G Sanjeeva Reddy, INTUC president and member of Rajya Sabha, wrote a letter to the Prime Minister requesting an amendment in the EPF Act and the Bonus Act to include workmen/employees earning between Rs. 15,000 to Rs. 20,000. The only amendment required in the Acts is the solution to your query!
Best Wishes,
Yogesh Jalota
From India, Jalandhar
Dear Santosh,
According to the provisions of the EPF, every employee (including part-time workers and those employed by or through contractors) shall be entitled to become a member of the Scheme from the date of joining the factory or the other establishment. However, if the wages drawn are more than Rs. 6500/-, the employee has to intimate his desire to contribute the whole amount to the Employees' Provident Fund Organisation through the employer. The employer can also contribute the whole amount drawn as wages under intimation to the Employees' Provident Fund Organisation. However, for the eligibility for the Family Pension Scheme 1971 purposes, anyone who joins on or after 16-11-95 is compulsory to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.
Hope this satisfies your query.
P.S. Dhingra CEO Dhingra Group of Consultants New Delhi [dcgroup1962@gmail.com] (M) 09968076381
From India, Delhi
According to the provisions of the EPF, every employee (including part-time workers and those employed by or through contractors) shall be entitled to become a member of the Scheme from the date of joining the factory or the other establishment. However, if the wages drawn are more than Rs. 6500/-, the employee has to intimate his desire to contribute the whole amount to the Employees' Provident Fund Organisation through the employer. The employer can also contribute the whole amount drawn as wages under intimation to the Employees' Provident Fund Organisation. However, for the eligibility for the Family Pension Scheme 1971 purposes, anyone who joins on or after 16-11-95 is compulsory to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.
Hope this satisfies your query.
P.S. Dhingra CEO Dhingra Group of Consultants New Delhi [dcgroup1962@gmail.com] (M) 09968076381
From India, Delhi
Dear Shiva, The minimum wages of Delhi is Basic+DA and in PF is applicable to both Basic & DA. Regarding the EPF limit the Govt is planning to increase the limit from 6500 to 10000.
From India, Delhi
From India, Delhi
Thank you to all for communicating and replying to each other, especially Mr. Yogesh Jalota who has posted good news in response to my query. Can anybody provide a copy of the letter from Dr. G. Sanjeeva Reddy, INTUC President and member of the Rajya Sabha, submitted to the Honorable Prime Minister?
Currently, the EPF Office cannot take any action against companies that are not deducting EPF from employees whose basic salary exceeds the prescribed limit. Let's work towards implementing this law for the welfare of various employees.
Thank you,
Santosh Kumar
From India, New Delhi
Currently, the EPF Office cannot take any action against companies that are not deducting EPF from employees whose basic salary exceeds the prescribed limit. Let's work towards implementing this law for the welfare of various employees.
Thank you,
Santosh Kumar
From India, New Delhi
Dear Santosh/All,
Find enclosed herewith the judgment of the MP High Court regarding the components of salary for the purpose of PF. Although the PF department has not yet sent the notification for implementation. This is for your information and perusal.
Thank you.
From India, Gurgaon
Find enclosed herewith the judgment of the MP High Court regarding the components of salary for the purpose of PF. Although the PF department has not yet sent the notification for implementation. This is for your information and perusal.
Thank you.
From India, Gurgaon
Dear Mr. Santosh,
Please find the Below EPF Amendment Details of Basic.
Before 1983-Rs. 1000.00
01.04.1983 to 31.08.1985- Rs. 1600.00 (2.4Years)
01.09.1985 to 31.10.1990- Rs. 2500.00 (5 years)
01.11.1990 to 30.09.1994- Rs. 3500.00 (3.10 Years)
01.10.1994 to 31.05.2001- Rs. 5000.00 (6.7 Years)
01.06.2001 to on words - Rs. 6500.00 ( 10 Years)
it may be coming soon�
Still awaiting .
Thanks,
Regards,
J.N.Modi
From India, New Delhi
Please find the Below EPF Amendment Details of Basic.
Before 1983-Rs. 1000.00
01.04.1983 to 31.08.1985- Rs. 1600.00 (2.4Years)
01.09.1985 to 31.10.1990- Rs. 2500.00 (5 years)
01.11.1990 to 30.09.1994- Rs. 3500.00 (3.10 Years)
01.10.1994 to 31.05.2001- Rs. 5000.00 (6.7 Years)
01.06.2001 to on words - Rs. 6500.00 ( 10 Years)
it may be coming soon�
Still awaiting .
Thanks,
Regards,
J.N.Modi
From India, New Delhi
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