Dear Friends
Two days back Enforcement Ofiicers from PF office (Coimbatore)came to our organisation and said that based on the JUdgement given on Aug 2004,refer SCA No 5666/2004 dated July26 2004 between Gujarat Cypromet and Asst PF Commissioner .....all the organisations should Include all the allowances except HRA for PF Calculation.Till date PF contribution is deducted only from Basic.They are also insisting us to pay arrears from April 2004....Any one come across this situation..can you please give me feedback on this...
Regards
JR KUmar
From India, Coimbatore
4Two days back Enforcement Ofiicers from PF office (Coimbatore)came to our organisation and said that based on the JUdgement given on Aug 2004,refer SCA No 5666/2004 dated July26 2004 between Gujarat Cypromet and Asst PF Commissioner .....all the organisations should Include all the allowances except HRA for PF Calculation.Till date PF contribution is deducted only from Basic.They are also insisting us to pay arrears from April 2004....Any one come across this situation..can you please give me feedback on this...
Regards
JR KUmar
From India, Coimbatore
Dear Mr.Kumar I am surprised to hear on this.... ! Let me findout. Can any other member especially from Gujrat & nearby can help. Bye :)
From India, Madras
From India, Madras
Hey its very shock to hear this....There is no such thing changes encountered here in chennai...Why cant u check with some other similar industry people or with PF consultants there???
Our friends have to reply ths.........
From United States, Lincolnshire
Our friends have to reply ths.........
From United States, Lincolnshire
Hey Friends,
Its indeed a surprising news. Jus few days back when new PF forms were filled for my organisation I did not receive any such communication from PF office. we need to check on this. Kumar you need to check directly from PF office. Here at chennai no such notice is given.
Regards,
Poonam
From India, Madras
Its indeed a surprising news. Jus few days back when new PF forms were filled for my organisation I did not receive any such communication from PF office. we need to check on this. Kumar you need to check directly from PF office. Here at chennai no such notice is given.
Regards,
Poonam
From India, Madras
Hi Guys
Its really a shocking news for me that the TN PF officers asking this. I am from Maharashtra working in HR last 3 yrs. As per my knowledge there is no amendment has been come out for calculating PF on except basic & DA (if applicable). Also its require so many official gazette to be approved before the policy would commence, if the policy would have been come so many unions would have been resisted on the same & published to the nationwide rather with in the city.
Provident fund act 1952 & other amendments nowhere mentioned about the new amendment. the last amendment came in Nov 1995 as Provident fund act 1996. So you can oppose the request. If the officials giving problem request you can go to state tribunal for your solutions through your company legal advisor.
We have around 6000 Emps spread around Mumbai, Pune & Nashik. We are calculating & submitting the PF returns on Employees basic & basic arrears only.
may be they are looking Vardhakshanai from your company :roll:
From India, Pune
Its really a shocking news for me that the TN PF officers asking this. I am from Maharashtra working in HR last 3 yrs. As per my knowledge there is no amendment has been come out for calculating PF on except basic & DA (if applicable). Also its require so many official gazette to be approved before the policy would commence, if the policy would have been come so many unions would have been resisted on the same & published to the nationwide rather with in the city.
Provident fund act 1952 & other amendments nowhere mentioned about the new amendment. the last amendment came in Nov 1995 as Provident fund act 1996. So you can oppose the request. If the officials giving problem request you can go to state tribunal for your solutions through your company legal advisor.
We have around 6000 Emps spread around Mumbai, Pune & Nashik. We are calculating & submitting the PF returns on Employees basic & basic arrears only.
may be they are looking Vardhakshanai from your company :roll:
From India, Pune
Dear Kumar,
I very well understand your piquant situation..
Checking the laws reproduced below :
Employer
Coverage
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act statutorily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.
Financial Obligations:
Contributions:
Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments.
Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.
Establishments declared as sick undertakings by BIFR.
A matching contribution is to be collected from the emoluments of the employees.
Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards pension fund.
Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.
Administrative Charges:
An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976.
No separate administrative charges for pension scheme
Inspection Charges:
In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection charges at the rate of 0.18% of emoluments.
In the case of establishment exempted from EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.
Interest Liability:
For belated remittances of contributions, administrative / inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.
Damages:-
For all the belated remittances of contribution and administration/inspection charges damages are also payable as penalty ranging from 17% to 37% p.a. depending upon delay.
Duties of Employer
Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees.
Remit the contributions and administrative charges before the 15th of the following month.
File the initial returns of Form 9, Form 3(P.S.), form 5A.
File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.
Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.
The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed.
Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees.
Make available all relevant records for inspection of visiting officials with due authorisation.
Exemptions under the Schemes
Provident Fund
An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.
Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
Pension Scheme
Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS ’95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.
There is no provision for exemption of individuals or for class of employees.
EDLI Scheme
The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.
Its very clear that 12% is deducted on allowances other than exempted ones like Conveyance Rs 800/m , Child allowance Rs 200/m for two children,Medical allowance Rs 15,000/ per annum & LTA.
Don't panic..what you do is calculate the cost or impact of the same and negogiate with them for the payment.
Ask for the copy for the judgement as they have claimed..couldn't find it..and let me know as i would put you across the right people in this field.
Regards,
Rajat
From India, Pune
I very well understand your piquant situation..
Checking the laws reproduced below :
Employer
Coverage
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act statutorily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.
Financial Obligations:
Contributions:
Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments.
Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.
Establishments declared as sick undertakings by BIFR.
A matching contribution is to be collected from the emoluments of the employees.
Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards pension fund.
Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.
Administrative Charges:
An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976.
No separate administrative charges for pension scheme
Inspection Charges:
In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection charges at the rate of 0.18% of emoluments.
In the case of establishment exempted from EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.
Interest Liability:
For belated remittances of contributions, administrative / inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.
Damages:-
For all the belated remittances of contribution and administration/inspection charges damages are also payable as penalty ranging from 17% to 37% p.a. depending upon delay.
Duties of Employer
Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees.
Remit the contributions and administrative charges before the 15th of the following month.
File the initial returns of Form 9, Form 3(P.S.), form 5A.
File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.
Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.
The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed.
Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees.
Make available all relevant records for inspection of visiting officials with due authorisation.
Exemptions under the Schemes
Provident Fund
An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.
Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
Pension Scheme
Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS ’95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.
There is no provision for exemption of individuals or for class of employees.
EDLI Scheme
The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.
Its very clear that 12% is deducted on allowances other than exempted ones like Conveyance Rs 800/m , Child allowance Rs 200/m for two children,Medical allowance Rs 15,000/ per annum & LTA.
Don't panic..what you do is calculate the cost or impact of the same and negogiate with them for the payment.
Ask for the copy for the judgement as they have claimed..couldn't find it..and let me know as i would put you across the right people in this field.
Regards,
Rajat
From India, Pune
Hi Friends
Thanks for your feedback...few of our PF consultants informed us that PF is just approaching all the organisation for the past 2 weeks...here in Coimbatore PF commissioner has been appointed recently and he is trying to introduce this notification....we have been informed by the PF Inspectors...I don't know how the other organisations are going to react ...these PF inspectors also facing difficulty in informing the same to the employers I hope so....any feedback you guys
Regards
JR Kumar
From India, Coimbatore
Thanks for your feedback...few of our PF consultants informed us that PF is just approaching all the organisation for the past 2 weeks...here in Coimbatore PF commissioner has been appointed recently and he is trying to introduce this notification....we have been informed by the PF Inspectors...I don't know how the other organisations are going to react ...these PF inspectors also facing difficulty in informing the same to the employers I hope so....any feedback you guys
Regards
JR Kumar
From India, Coimbatore
Hi,
I think it's surprised news to every one. I would like to suggest you to check the authenticity of this paper which u got. If any amendments in PF rules / regualtions amended or changed a copies has to be sent to every employer or a press release has to be made by the PF office.
First check with the PF higher authorities about this amendment, send a written communication about all this happend with you, with a copy of the letter. Send a copy to all commissioner (top level of the state ).
Meet your company advocate to check about this case (JUdgement given on Aug 2004,refer SCA No 5666/2004 dated July26 2004 between Gujarat Cypromet and Asst PF Commissioner ) and it's related issues. It may not applicable to all company or may be for that case only.
Please correspond all this issues in writing.
I think the amendment may be applicable for this case only, because if it's applicable to every company then PF office should give a official announcement in News paper or draft to all companies within INDIA.
If I find any thing more interesting on this topic I will forward you.
Thanks
shravan
From United Kingdom, London
I think it's surprised news to every one. I would like to suggest you to check the authenticity of this paper which u got. If any amendments in PF rules / regualtions amended or changed a copies has to be sent to every employer or a press release has to be made by the PF office.
First check with the PF higher authorities about this amendment, send a written communication about all this happend with you, with a copy of the letter. Send a copy to all commissioner (top level of the state ).
Meet your company advocate to check about this case (JUdgement given on Aug 2004,refer SCA No 5666/2004 dated July26 2004 between Gujarat Cypromet and Asst PF Commissioner ) and it's related issues. It may not applicable to all company or may be for that case only.
Please correspond all this issues in writing.
I think the amendment may be applicable for this case only, because if it's applicable to every company then PF office should give a official announcement in News paper or draft to all companies within INDIA.
If I find any thing more interesting on this topic I will forward you.
Thanks
shravan
From United Kingdom, London
HI Friends Did any of you got feedback on this iclusive of all allownce for PF contribution except HRA....Kindly give us your feedback
From India, Coimbatore
From India, Coimbatore
Hi Kumar
As I mentioned to my earlier posting there is no amendment has come for PF contribution. After i have done the posting I have confirmed with my Pf consultant about the communication of SCA No 5666/2004, no info. If there is any amendment or changes in PF calculations there is always communication to all employers as it was in the Nov 1995 & a press release would have been happened.
As per Rajats posting I have come to know & confirm with my manager, EDLI is existing & the scheme is a optional scheme where all allowances are included to calculate the monthly premium payable for a particular employee. It is a optional scheme not a mandotory.
Request you to have a communication with State Tribunal of Provident fund at Chennai to get a clear info or else you can contact the Gujarat Sypromat Co, for the clear communication. It is a production company where the insurance (EDLI) scheme is required.
From India, Pune
As I mentioned to my earlier posting there is no amendment has come for PF contribution. After i have done the posting I have confirmed with my Pf consultant about the communication of SCA No 5666/2004, no info. If there is any amendment or changes in PF calculations there is always communication to all employers as it was in the Nov 1995 & a press release would have been happened.
As per Rajats posting I have come to know & confirm with my manager, EDLI is existing & the scheme is a optional scheme where all allowances are included to calculate the monthly premium payable for a particular employee. It is a optional scheme not a mandotory.
Request you to have a communication with State Tribunal of Provident fund at Chennai to get a clear info or else you can contact the Gujarat Sypromat Co, for the clear communication. It is a production company where the insurance (EDLI) scheme is required.
From India, Pune
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