I am working in 5 yrs old company. I am asking to employer to give pf benifits since 2 yrs but they says we'll provide later. Now they are ready to start pf but they want to sign fresh current dated appointment letter frm all employees. What law says?
From India, Mumbai
From India, Mumbai
PF Rules says from the day one, that is why they are issuing the current appt orders for Proof. if the Inspector comes and checks the attendance then your company will be trouble. They may remove the attendance, even then, salary payments could have been reflected in the Accounting statement of the company, hen they can not escape.
From India, Madras
7From India, Madras
In case the co. is having more than 20 ees., , Act is applicable from the date, it employed 20 or more ees. In that situation P.F authorities will check all employment details and will ensure that all eligible ees are made members from due dates and Contributions are deposited.
In this case, even fresh employment letter will not help estt, as earlier documents will have to be shown to the PF authorities on inspection.
One can make representation/complaint to the RPFC .
CHANDOK
RPFC (Retd.)
<link no longer exists - removed>
09988021715
From India, Chandigarh
In this case, even fresh employment letter will not help estt, as earlier documents will have to be shown to the PF authorities on inspection.
One can make representation/complaint to the RPFC .
CHANDOK
RPFC (Retd.)
<link no longer exists - removed>
09988021715
From India, Chandigarh
Respectees,
Recently, the High Court of Punjab and Haryana ordered an interim stay on Split of Minimum wages for EPF contributions. We have heared from the EPF enforcing authority was that the reason behind the stay was, as per the EPF Act HRA wages or exclusive for EPF contribution, whereas in the state of Punjab HRA is also one of the component constitutes minimum wages (i.e) Basic + DA + HRA.
I am posting this query with learning interest, is it the real reason for interim stay of split in minimum wages for EPF contribciution???
To my limited knowledge, there is no specific amendment in the EPF contribution on the "basic" wages". Specifically the definition of "basic" wages as remains same as in the Parent enactment. In such a situtation, most of the companies they are having their own wage policy and the basic wages ranges from 35~60% on Gross wages. The EPF contributions were also made on the Basic wages (35~60%).
Whereas, after 58 years of its enactment, some of the enforcing authorities of EPF giving different interpretation stating that, Basic wages include all allowance excluding HRA wages. Minimum wages cannot be split for EPF reasons and so on. Is these interpretations are correct in the eyes of law??? Is it so, why it was unnoticed for the last 58 years???????
Let me know, what is the legal stand on this issue??? I am looking forward reply from legal experts and senior members.
From India, Madras
Recently, the High Court of Punjab and Haryana ordered an interim stay on Split of Minimum wages for EPF contributions. We have heared from the EPF enforcing authority was that the reason behind the stay was, as per the EPF Act HRA wages or exclusive for EPF contribution, whereas in the state of Punjab HRA is also one of the component constitutes minimum wages (i.e) Basic + DA + HRA.
I am posting this query with learning interest, is it the real reason for interim stay of split in minimum wages for EPF contribciution???
To my limited knowledge, there is no specific amendment in the EPF contribution on the "basic" wages". Specifically the definition of "basic" wages as remains same as in the Parent enactment. In such a situtation, most of the companies they are having their own wage policy and the basic wages ranges from 35~60% on Gross wages. The EPF contributions were also made on the Basic wages (35~60%).
Whereas, after 58 years of its enactment, some of the enforcing authorities of EPF giving different interpretation stating that, Basic wages include all allowance excluding HRA wages. Minimum wages cannot be split for EPF reasons and so on. Is these interpretations are correct in the eyes of law??? Is it so, why it was unnoticed for the last 58 years???????
Let me know, what is the legal stand on this issue??? I am looking forward reply from legal experts and senior members.
From India, Madras
The legal position is very clear i.e. PF contributions are to be deducted and deposited statutorily up to maximum of Rs. 6500. Beyond this limit , it is to be mutually agreed upon by the Er. & Ee. subject to acceptance/approval of RPFC.
PROBLEM RELATED TO BASIC WAGES ARISES ONLY WHEN THE ER.SPLIT UP THE WAGES JUST TO KEEP THE WAGES below 6500 , just to limit his own share of contribution at the minimum level. For this reason only ,the controversy has occurred.
The Hon,ble Supreme court of India has decided various items to be or not to be part of basic wages.These are available in most of the Text Books on EPF & MP Act 1952.
Adv.CHANDOK
Ex RPFC
From India, Chandigarh
PROBLEM RELATED TO BASIC WAGES ARISES ONLY WHEN THE ER.SPLIT UP THE WAGES JUST TO KEEP THE WAGES below 6500 , just to limit his own share of contribution at the minimum level. For this reason only ,the controversy has occurred.
The Hon,ble Supreme court of India has decided various items to be or not to be part of basic wages.These are available in most of the Text Books on EPF & MP Act 1952.
Adv.CHANDOK
Ex RPFC
From India, Chandigarh
Dear Sir,
I appreciate your immediate response. Coming to real work life situation, most of the companies they are engaging contractual labours and paying the minimum wages as per laws of the land. When a contractual employee gets minimum wages and paying EPF contribution 100%, naturally it take home pay will be less. Moreover, there is no strict control over the contractual epf contribution unless it is made it as online mode. Further more, the contractual employees are migrating in nature and they will not opt for withdrawal and transfer facility available under the Act.
Like this situation, the purpose of the Act is get defeated and the unclaimed amount accumulates in EPF in Crores and Crores of rupees. Fortunately, the recent amendment provided a good effort to stop carrying interest for unclaimed amount. Considering all these facts, the employer should not be compelled to contribute 100% on minimum wages subject the EPF ceiling amount of Rs.6500/-.
From India, Madras
I appreciate your immediate response. Coming to real work life situation, most of the companies they are engaging contractual labours and paying the minimum wages as per laws of the land. When a contractual employee gets minimum wages and paying EPF contribution 100%, naturally it take home pay will be less. Moreover, there is no strict control over the contractual epf contribution unless it is made it as online mode. Further more, the contractual employees are migrating in nature and they will not opt for withdrawal and transfer facility available under the Act.
Like this situation, the purpose of the Act is get defeated and the unclaimed amount accumulates in EPF in Crores and Crores of rupees. Fortunately, the recent amendment provided a good effort to stop carrying interest for unclaimed amount. Considering all these facts, the employer should not be compelled to contribute 100% on minimum wages subject the EPF ceiling amount of Rs.6500/-.
From India, Madras
Dear sir,
As per the provisions of EPF&MPAct 1952 an establishment employing 20 or more employees is required to register under the EPFand enrol all the eligible employees drawing salry of Rs. 6500/- pm. (inclusive of basic and DA)
You have not stated how many employees your employer had when you joined.
Whether the establishment was covered under EPF when you joined.
If it was covered under the EPF Act , and you were not enrolled as member , you can make the complaint to the concerned RPFC of Sub-Regional/ Regional office of EPFO.
RLDhingra, Advocate,
Labour Law Consultant, Delhi
09818309937 Email:
From India, Delhi
As per the provisions of EPF&MPAct 1952 an establishment employing 20 or more employees is required to register under the EPFand enrol all the eligible employees drawing salry of Rs. 6500/- pm. (inclusive of basic and DA)
You have not stated how many employees your employer had when you joined.
Whether the establishment was covered under EPF when you joined.
If it was covered under the EPF Act , and you were not enrolled as member , you can make the complaint to the concerned RPFC of Sub-Regional/ Regional office of EPFO.
RLDhingra, Advocate,
Labour Law Consultant, Delhi
09818309937 Email:
From India, Delhi
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PF WORKING-MASTER SUMMARY.xls