No Tags Found!

Can Anyone Know me that PF Deduction on Director Remuneration. If Yes let me know the procedure of Deduction
From India, Gandhidham
Acknowledge(0)
Amend(0)

Full time Director’s are also employee’s as per definition in PF Act. Hence, their PF should be deducted just like other employees.
From India, Mumbai
Acknowledge(0)
Amend(0)

What would be the case for Directors who are not employees of the company but are paid some amounts for services, sitting fees, etc.? Also, what about commission paid on profit to directors? Are they exempt from PF as they are not considered salary?


From India, Mumbai
Acknowledge(0)
Amend(0)

Directors who do not receive wages are excluded from EPF scheme. Varghese Mathew
From India, Thiruvananthapuram
Acknowledge(0)
Amend(0)

Hi,
1. Yes, it is applicable to Director as per Pf act “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer. It includes any person - (i) employed by or through a contractor in or in connection with the work of the establishment.
2.An employee who is drawing ‘pay’ above prescribed limit (presently Rs 6,500) can become member with permission of Assistant PF Commissioner, if he and his employer agree. [para 26(6) of EPF Scheme]

From India, Mumbai
Acknowledge(0)
Amend(0)

Hi,

The Executive Directors who are looking after day-to-day activities of the company and who are directly on the payroll of the company, drawing a salary like other employees per month, those Directors are the employees of the company under the definition of the PF Act. So it is compulsory on the part of the company to deduct PF contributions in accordance with the PF & MP Act as applicable.

Other Directors who do not receive salary/wages from the company are excluded from the PF & MP Act. Normally, they receive sitting fees for attending board meetings, reimbursement of hotel expenses for staying, commission, etc., as prescribed under the Companies Act. In other words, they are not whole-time Directors of the company.

Regards,

From India, Calcutta
Acknowledge(0)
Amend(0)

Any Company can deduct GRATUITY/PENSION FUND from salary. if it is deducted from salary than which department to deposit by empoyer
From India, Gandhidham
Acknowledge(0)
Amend(0)

any notification or judgement in support, pl share
From India, Jaipur
Acknowledge(0)
Amend(0)

Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.