Dear Seniors
Seek your help and expert suggestions on following query:
Ours is a company that started with just 3 employees. Today we are 130 employees. When the company started, since it was not covered under the PF Act, the PF deduction was not made. Later, when we got the PF registeration, the company started deducting the PF from new hired staff however, paid the PF for both employee and employer contribution.
Now, the company wants to discontinue the practice and have a comman policy across the company for all employees and start deducting the employee share of PF from the employees salary.
Please provide the best solution to do this.
1. Can we with immediate effect start deducting the PF from employee salary as it is a statutory deduction?
2. Can the employees claim that till date they have recieved full salary without PF deduction and they are not willing to get the PF deducted now?
3. Can the company make an exgratia payment and then request the employees to pay thier own share of PF ?
Please provide your valuable suggestions.
Many thanks.
Kind Regards,
Sonia
From India
4Seek your help and expert suggestions on following query:
Ours is a company that started with just 3 employees. Today we are 130 employees. When the company started, since it was not covered under the PF Act, the PF deduction was not made. Later, when we got the PF registeration, the company started deducting the PF from new hired staff however, paid the PF for both employee and employer contribution.
Now, the company wants to discontinue the practice and have a comman policy across the company for all employees and start deducting the employee share of PF from the employees salary.
Please provide the best solution to do this.
1. Can we with immediate effect start deducting the PF from employee salary as it is a statutory deduction?
2. Can the employees claim that till date they have recieved full salary without PF deduction and they are not willing to get the PF deducted now?
3. Can the company make an exgratia payment and then request the employees to pay thier own share of PF ?
Please provide your valuable suggestions.
Many thanks.
Kind Regards,
Sonia
From India
When you were expected to deduct employees' share of contribution you did not do. Why? Was it due to ignorance of law or to pamper your employees. Now if you go for deduction that will lead to taking away of privilege given. Any privilege given always become right later on. In your case also that has happened. To manage situation, you have either to admit that you were not deducting employees' share my mistake/ omission/ ignorance. Try a circular stating that henceforth the employees' share of contribution will not be borne by the employer and the employer will deduct the employees share from the salary as per the provisions of the EPF Act. There will be negative responses for the circular. But when you add that the employer will not recover any employees' share already contributed in the past the gravity of opposition can be reduced.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf