Dear All,
I am very new to this particular setup which has only 40-plus employees. Here, the PF has not been deducted from employees. Is this the right way of doing things? Is PF deduction optional for a small company?
Please share your thoughts.
Thank you.
Regards,
Siva
From India, undefined
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I am very new to this particular setup which has only 40-plus employees. Here, the PF has not been deducted from employees. Is this the right way of doing things? Is PF deduction optional for a small company?
Please share your thoughts.
Thank you.
Regards,
Siva
From India, undefined
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If the employee strength is more than 7, it is compulsory to maintain statutory requirements. Hence, please know the procedure of registering yourself with EPFO and start paying PF. If this continues, and an employee who is aware of rules and regulations intimates EPFO, then action will be taken against the company. To avoid these kinds of problems in the future, please speed up the process.
This is what I would say to the best of my knowledge.
From India, Bengaluru
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14This is what I would say to the best of my knowledge.
From India, Bengaluru
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Dear Seniors , pl. clarify my doubts here. i want to know the PF Rules and how to break the salary structure. And what is the minimum wages of Maharashtra state.
From India, Miraj
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From India, Miraj
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Hello, Ours is newly started recruitment consultancy and staff is less than 7.. so how should we design the salary structure? Should we add PF/ESI in the salary or not??
From India, Vadodara
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From India, Vadodara
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Dear Supriyamd,
Where did you get the number of "7" employees for applicability of the statutory requirement? I would like to know the act to which you are referring. PF is applicable only to companies with 20 or more employees. ESIC applies in case of 20 or more employees (10 or more in some states). I am not aware of any act that applies from 7 or more.
From India, Mumbai
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Where did you get the number of "7" employees for applicability of the statutory requirement? I would like to know the act to which you are referring. PF is applicable only to companies with 20 or more employees. ESIC applies in case of 20 or more employees (10 or more in some states). I am not aware of any act that applies from 7 or more.
From India, Mumbai
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ProximHR Placement,
PF, ESIC is not applicable to your company, so there is no need to add it to the salary of your employees. There are lots of discussions on salary structure in this forum; search for the relevant thread and proceed.
In reality, for a small company like yours, the salary structure does not matter, except that employees get some tax benefits for conveyance allowance (up to Rs. 1600 per month) and HRA (a complicated working your CA/Auditor will be able to explain).
From India, Mumbai
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PF, ESIC is not applicable to your company, so there is no need to add it to the salary of your employees. There are lots of discussions on salary structure in this forum; search for the relevant thread and proceed.
In reality, for a small company like yours, the salary structure does not matter, except that employees get some tax benefits for conveyance allowance (up to Rs. 1600 per month) and HRA (a complicated working your CA/Auditor will be able to explain).
From India, Mumbai
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Sorry Sir. I mistook the number of Labourers for forming the Union. For PF to be applicable 20 employees are requried. I apologise for what ever I said above.
From India, Bengaluru
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From India, Bengaluru
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Hi All,
I have a query regarding PF. I work for a construction industry. Here, the availability of labor is a difficult task. We pay them in cash as they are:
1. Casual & Migratory Workers
2. Most of them don't have Bank Accounts or any photo ID for opening bank accounts
3. They work under a Labor Contractor.
PF authorities are issuing notices and forcing us to enroll these casual workers under EPF or else serving us notices. According to them, even if a worker worked for a day, PF needs to be deducted. While making it compulsory, workers are threatening to leave the work. We are in great trouble. After convincing, we could get the IDs of a couple of workers who were having Aadhar and Address Proof. And obviously, we are paying that above the committed amount (from our pockets).
Recently, I heard that if a person has worked for more than 60 days, then only they should be made a member of PF. I am not sure how far it is true.
Kindly advise.
Satya
From India, Pune
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I have a query regarding PF. I work for a construction industry. Here, the availability of labor is a difficult task. We pay them in cash as they are:
1. Casual & Migratory Workers
2. Most of them don't have Bank Accounts or any photo ID for opening bank accounts
3. They work under a Labor Contractor.
PF authorities are issuing notices and forcing us to enroll these casual workers under EPF or else serving us notices. According to them, even if a worker worked for a day, PF needs to be deducted. While making it compulsory, workers are threatening to leave the work. We are in great trouble. After convincing, we could get the IDs of a couple of workers who were having Aadhar and Address Proof. And obviously, we are paying that above the committed amount (from our pockets).
Recently, I heard that if a person has worked for more than 60 days, then only they should be made a member of PF. I am not sure how far it is true.
Kindly advise.
Satya
From India, Pune
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Siva Pf,Esi are applicable to your firm as you have more than 20 employed persons.ESi will be applicable only if the company is in implemented area.after five years Gratuity will be applicable.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Satya,
That rule you are referring to was removed more than 10 years ago. Currently, if a person has worked for you even for a day, you are required to pay PF for that individual. The action taken by the PF authorities is absolutely correct.
Today, almost every person possesses an Aadhaar card, voter ID card, or some other form of ID. Through the PM Jan Dhan scheme, banks are mandated to open bank accounts with just a single document. Hence, in the current scenario, obtaining their bank account details is easily achievable.
Negotiating the salary is crucial in making the job attractive to the individual. You can offer a higher amount and either deduct the PF or directly pay the PF on their behalf.
Please let me know if you need further assistance or clarification.
From India, Mumbai
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That rule you are referring to was removed more than 10 years ago. Currently, if a person has worked for you even for a day, you are required to pay PF for that individual. The action taken by the PF authorities is absolutely correct.
Today, almost every person possesses an Aadhaar card, voter ID card, or some other form of ID. Through the PM Jan Dhan scheme, banks are mandated to open bank accounts with just a single document. Hence, in the current scenario, obtaining their bank account details is easily achievable.
Negotiating the salary is crucial in making the job attractive to the individual. You can offer a higher amount and either deduct the PF or directly pay the PF on their behalf.
Please let me know if you need further assistance or clarification.
From India, Mumbai
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SALARY with out PF Deduction.xls
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