Dear Sir,
In my company, one lady has gone on maternity leave for three months. During this period, do we have to pay her salary? If we do pay her salary during this time, should we deduct the PF and ESI even though she is on leave?
Please send your reply to my email address: adigask@rediffmail.com.
Thank you.
From India, Bangalore
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In my company, one lady has gone on maternity leave for three months. During this period, do we have to pay her salary? If we do pay her salary during this time, should we deduct the PF and ESI even though she is on leave?
Please send your reply to my email address: adigask@rediffmail.com.
Thank you.
From India, Bangalore
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Dear Friends,
My Factory is covered under EPF & MP Act. I am citing the following two cases and seek your suggestions regarding what action the employer should take in such situations.
1. One of our executives, who has recently joined our organization, is drawing a basic salary of Rs. 38,000/- per month. He is insisting not to deduct PF contribution from his salary as his salary exceeds Rs. 6,500/- per month. In our organization, which is covered under EPF & MP Act for the last 40 years, all the employees, both the existing as well as the new joiners, are extended the PF benefit irrespective of their salary limit, and PF is deducted from the entire amount of the basic salary. The newly joined executive has not declared in writing in the prescribed form that he was not a PF subscriber in his previous employment.
2. Another executive, who has recently joined our organization on a basic salary of Rs. 30,000/- per month, was a PF subscriber, and PF was deducted from his salary up to Rs. 6,500/- only under his previous employer. He has not yet withdrawn his PF amount from the EPFO. He is requesting to deduct PF contribution from his salary only up to the limit of Rs. 6,500/- instead of the entire amount of his present salary.
Yours sincerely,
S.K. Hota
From India, Calcutta
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19My Factory is covered under EPF & MP Act. I am citing the following two cases and seek your suggestions regarding what action the employer should take in such situations.
1. One of our executives, who has recently joined our organization, is drawing a basic salary of Rs. 38,000/- per month. He is insisting not to deduct PF contribution from his salary as his salary exceeds Rs. 6,500/- per month. In our organization, which is covered under EPF & MP Act for the last 40 years, all the employees, both the existing as well as the new joiners, are extended the PF benefit irrespective of their salary limit, and PF is deducted from the entire amount of the basic salary. The newly joined executive has not declared in writing in the prescribed form that he was not a PF subscriber in his previous employment.
2. Another executive, who has recently joined our organization on a basic salary of Rs. 30,000/- per month, was a PF subscriber, and PF was deducted from his salary up to Rs. 6,500/- only under his previous employer. He has not yet withdrawn his PF amount from the EPFO. He is requesting to deduct PF contribution from his salary only up to the limit of Rs. 6,500/- instead of the entire amount of his present salary.
Yours sincerely,
S.K. Hota
From India, Calcutta
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Dear SK,
As far as knowledge is concerned, I reckon:
1. If an employee was once covered under the PF Act, they are obligated to contribute towards PF, regardless of how many organizations they change. Alternatively, if the employee withdraws the entire amount and later joins a new organization, they may be exempted from making contributions.
2. The employee is allowed to contribute above the contribution limit (in the case of PF amount), but the employer will only contribute 780 (EPF + pension).
Please correct me if the above answers are incorrect.
Regards,
VB
From India, Pune
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As far as knowledge is concerned, I reckon:
1. If an employee was once covered under the PF Act, they are obligated to contribute towards PF, regardless of how many organizations they change. Alternatively, if the employee withdraws the entire amount and later joins a new organization, they may be exempted from making contributions.
2. The employee is allowed to contribute above the contribution limit (in the case of PF amount), but the employer will only contribute 780 (EPF + pension).
Please correct me if the above answers are incorrect.
Regards,
VB
From India, Pune
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Hi Vikkybhati07,
If it is like that, then it's a new learning for me. Seniors, kindly put your comment on the same.
One more question I have about PF. Nowadays, as per the Social Security Agreement between India and a few other countries. Could anyone shed a little light on this? I have gone through the agreement papers and applied for the coverage certificate. Since our company is in Gurgaon, I believe this will be handled by the PF Head Office (BhikaJi). I also need to know about the foreigners working in our establishment. They want to withdraw their PF after this, but when I asked the PF team, they said it is not possible now; it can be done after 58 years. I need clarification on this too.
Regards,
Kunal Kumar
From India, Mumbai
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If it is like that, then it's a new learning for me. Seniors, kindly put your comment on the same.
One more question I have about PF. Nowadays, as per the Social Security Agreement between India and a few other countries. Could anyone shed a little light on this? I have gone through the agreement papers and applied for the coverage certificate. Since our company is in Gurgaon, I believe this will be handled by the PF Head Office (BhikaJi). I also need to know about the foreigners working in our establishment. They want to withdraw their PF after this, but when I asked the PF team, they said it is not possible now; it can be done after 58 years. I need clarification on this too.
Regards,
Kunal Kumar
From India, Mumbai
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Dear V.B.,
Thank you for your prompt response. My personal view is the same as yours in Case No. 1. However, in Case No. 2, my employer is willing to deduct PF contributions from the entire salary of the new joiner (both employer and employee shares), whereas the new joiner insists on no PF deduction over the statutory limit of Rs. 6,500.
In such a case, what should be the legally permissible course of action on the part of the employer? Should the employer deduct PF contributions at 12% (both employee and employer shares) from the entire salary, or only over Rs. 6,500 from the full salary?
I seek advice from members of the community. I invite member-friends who are or were working in EPFO to give their reasoned opinion on the matter.
Regards,
S.K. Hota
From India, Calcutta
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Thank you for your prompt response. My personal view is the same as yours in Case No. 1. However, in Case No. 2, my employer is willing to deduct PF contributions from the entire salary of the new joiner (both employer and employee shares), whereas the new joiner insists on no PF deduction over the statutory limit of Rs. 6,500.
In such a case, what should be the legally permissible course of action on the part of the employer? Should the employer deduct PF contributions at 12% (both employee and employer shares) from the entire salary, or only over Rs. 6,500 from the full salary?
I seek advice from members of the community. I invite member-friends who are or were working in EPFO to give their reasoned opinion on the matter.
Regards,
S.K. Hota
From India, Calcutta
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Dear friends,
Some years back, I came across an article published in the Labour Law Reporter regarding the payments deemed as wages for the purpose of deducting PF contributions. Could anybody enlighten me about the items of payments made to employees that are or are not to be deemed as wages for the purpose of PF contribution deduction?
Sincerely Yours,
S.K. Hota
From India, Calcutta
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Some years back, I came across an article published in the Labour Law Reporter regarding the payments deemed as wages for the purpose of deducting PF contributions. Could anybody enlighten me about the items of payments made to employees that are or are not to be deemed as wages for the purpose of PF contribution deduction?
Sincerely Yours,
S.K. Hota
From India, Calcutta
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