Hello All,
A company was covered by EPF in December 2017 with 21 employees. We have a few members who were part of EPF and have UAN numbers. Their KYC was not updated, and some of them have withdrawn amounts from EPF.
Now, can I continue using those UANs in this newly covered company, or do we need to create new UANs? Please advise on this. If anyone can provide a notification explaining why I should consider the existing UANs, it would be greatly appreciated. My boss has requested that I produce the notification.
From India, Delhi
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4A company was covered by EPF in December 2017 with 21 employees. We have a few members who were part of EPF and have UAN numbers. Their KYC was not updated, and some of them have withdrawn amounts from EPF.
Now, can I continue using those UANs in this newly covered company, or do we need to create new UANs? Please advise on this. If anyone can provide a notification explaining why I should consider the existing UANs, it would be greatly appreciated. My boss has requested that I produce the notification.
From India, Delhi
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Continue with same UAN ... full form itself implicates its meaning , no need of notification. Even from one aaddhar number cannot create second UAN now onward.
From India, undefined
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From India, undefined
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Thank you, Mr. RK Singh. I found one notification and an FAQ that agree with your answer.
I have another question on First-Time Applicability. Most of the employees have been working for several years and are receiving their full amount of pay. Now, who will pay the 24% of PF? Employees may raise concerns about a reduction in their net pay.
Please advise if there is a provision where we can deduct both amounts from the employees' salaries, or if the employer needs to cover both parts.
Please advise on this.
Thanks & Regards,
Ramesh
From India, Delhi
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I have another question on First-Time Applicability. Most of the employees have been working for several years and are receiving their full amount of pay. Now, who will pay the 24% of PF? Employees may raise concerns about a reduction in their net pay.
Please advise if there is a provision where we can deduct both amounts from the employees' salaries, or if the employer needs to cover both parts.
Please advise on this.
Thanks & Regards,
Ramesh
From India, Delhi
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Dear Ramesh,
As stated by you, your establishment is covered under EPF Act from Dec-2017, consequent to an increase in manpower, i.e., 21 employees. You have to deduct the employee's share of EPF at 12% from the employee salary only. Employee salary is subject to statutory deductions like PF, ESI, PT, LWF, IT, etc., as applicable. You should have communicated to all employees regarding the applicability of EPF Act to your establishment w.e.f Dec-2017.
Further, since EPF is a social security legislation, wide publicity should be given regarding the various benefits provided therein.
From India, New Delhi
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As stated by you, your establishment is covered under EPF Act from Dec-2017, consequent to an increase in manpower, i.e., 21 employees. You have to deduct the employee's share of EPF at 12% from the employee salary only. Employee salary is subject to statutory deductions like PF, ESI, PT, LWF, IT, etc., as applicable. You should have communicated to all employees regarding the applicability of EPF Act to your establishment w.e.f Dec-2017.
Further, since EPF is a social security legislation, wide publicity should be given regarding the various benefits provided therein.
From India, New Delhi
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Thank you, Mr. Srinath. That is what I tried to convince my boss, but he is still keen to know if there is any chance we can deduct both parts from the employee as nowadays it is a normal practice done by most of the employers. Include both contributions in CTC. Any notification or provision in EPF will be appreciated. Please.
From India, Delhi
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From India, Delhi
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Dear Mr. Ramesh,
Only the employer share of EPF at 12% and applicable admin & EDLI charge at 1.15% can be included in CTC. Your statement that "nowadays, the normal practice done by most of the employers is to include both contributions in CTC" is not correct.
Please have a look at the specimen CTC Annexure recently uploaded by the Honourable Member of this site for clarity. As an employer, you should forecast the employer's contribution towards EPF & ESI while structuring salary.
From India, New Delhi
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Only the employer share of EPF at 12% and applicable admin & EDLI charge at 1.15% can be included in CTC. Your statement that "nowadays, the normal practice done by most of the employers is to include both contributions in CTC" is not correct.
Please have a look at the specimen CTC Annexure recently uploaded by the Honourable Member of this site for clarity. As an employer, you should forecast the employer's contribution towards EPF & ESI while structuring salary.
From India, New Delhi
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