Ours is a covered organisation.
Recently it came to my notice that there are some employees in my company who are not getting the PF benefits.
I understand the ceiling part, but my query is if A was working with some company and was contributing towards PF, now joins my company. As per our salary structure, A's new basic salary is INR 7000. and therefore, no more PF deductions are made towards PF contribution, A's salary being out of the ceiling.
I am , however, not sure on the part as to what does law say on this?
Best Regards
Harsh
From India, Delhi
2Recently it came to my notice that there are some employees in my company who are not getting the PF benefits.
I understand the ceiling part, but my query is if A was working with some company and was contributing towards PF, now joins my company. As per our salary structure, A's new basic salary is INR 7000. and therefore, no more PF deductions are made towards PF contribution, A's salary being out of the ceiling.
I am , however, not sure on the part as to what does law say on this?
- It is necessary for the employee or the employer to continue A's contribution towards PF?
If not, any process like some monthly returns apart from form 12A, challan, Form 5, Form 10, to be followed regularly?
Best Regards
Harsh
From India, Delhi
Dear Harsh, If A is still a member of the PF i.e. he has not withdrawn his previous accumulation, as per law you are liable to deduct PF from his salary. Regards Parag
From India
From India
Dear Harsh,
This employee can apply to the PF department to withdraw his previous PF accumulation. The form has to be duly signed by his previous employer.
Else, He can give the same PF number to you if you are covered with the same PF organisation and transfer his funds and link it to your organisation.
Regards
Renu
From Singapore
This employee can apply to the PF department to withdraw his previous PF accumulation. The form has to be duly signed by his previous employer.
Else, He can give the same PF number to you if you are covered with the same PF organisation and transfer his funds and link it to your organisation.
Regards
Renu
From Singapore
Thanks for the info Parag,
Pl throw some light on the following.
1.But what if A has withdrawn his PF accumulation?
In this case would it not be necessary for us to dedcuct PF.
2. My accounts chap says that it is not necessary since his basic salary is beyond Rs. 6500.
Also he must not have withdrawn the PF accumulation, since it is possible only after 60 days of leaving the service, but his case he left his pvs. orgn only 10 days back. which means he is still a member of PF. :?
BRs
Harsh
From India, Delhi
Pl throw some light on the following.
1.But what if A has withdrawn his PF accumulation?
In this case would it not be necessary for us to dedcuct PF.
2. My accounts chap says that it is not necessary since his basic salary is beyond Rs. 6500.
Also he must not have withdrawn the PF accumulation, since it is possible only after 60 days of leaving the service, but his case he left his pvs. orgn only 10 days back. which means he is still a member of PF. :?
BRs
Harsh
From India, Delhi
Dear Harsh,
What your accounts guy is saying is in case of "excluded employee". At the time of joining an employee has to fill in Form 11 giving his previous employment details, if any. In case he is a fresher and his basic is above 6500 he may be considered an "excluded employee". Else if an employee gives a declaration in Form 11 that he is no more a member of the fund having withdrawn the previous accumulation he will be considered an excluded employee. If you get the Form 11 filled as above the onus will be on the employee.
Parag
From India
What your accounts guy is saying is in case of "excluded employee". At the time of joining an employee has to fill in Form 11 giving his previous employment details, if any. In case he is a fresher and his basic is above 6500 he may be considered an "excluded employee". Else if an employee gives a declaration in Form 11 that he is no more a member of the fund having withdrawn the previous accumulation he will be considered an excluded employee. If you get the Form 11 filled as above the onus will be on the employee.
Parag
From India
Hi Deepa,
It is only for few cases like natural calamities, etc. advance can be taken from PF before completion of one year. An extract from the site www.epfinidia.com is attached for your reference.
From India
It is only for few cases like natural calamities, etc. advance can be taken from PF before completion of one year. An extract from the site www.epfinidia.com is attached for your reference.
From India
Dear harsh,
You arent elaborate the question. however, I could not understand your co. practices for PF.
1. I assumed that your concern is not deducting PF contribution to those employees whose basic is exceeds Rs.6500. In this case, Mr. A joined at basic sal. Rs.7000/-, then no PF deduction is required. And asked him to withdraw his earlier co. PF & FPF.
2. If your co. deducted PF contribution to the extent of Rs. 6500/- even employees basic salary is higher than Rs. 6500/-. In this case, you deduct PF of mr. A upto the extent of Rs. 6500/-.
For more clarifications, revert.
regs,
Bhushan Dahanukar
From India, Mumbai
You arent elaborate the question. however, I could not understand your co. practices for PF.
1. I assumed that your concern is not deducting PF contribution to those employees whose basic is exceeds Rs.6500. In this case, Mr. A joined at basic sal. Rs.7000/-, then no PF deduction is required. And asked him to withdraw his earlier co. PF & FPF.
2. If your co. deducted PF contribution to the extent of Rs. 6500/- even employees basic salary is higher than Rs. 6500/-. In this case, you deduct PF of mr. A upto the extent of Rs. 6500/-.
For more clarifications, revert.
regs,
Bhushan Dahanukar
From India, Mumbai
Hi Harsha,
Regarding P.F.Deduction if any employees basic is more than 6500 or 7000 then also we need to deduct only on the above said basic.
Ex : If A person's basic salary is Rs 9000/- then the duty of Employer is to deduct P.F on Only Rs 7000/-.
If Employee is interested to deduct his P.F on Rs 9000/- then only from employee's contribution can be submitted to P.F Dept, and the Employer's contribution up to Rs 7000/-.
Regards
Jay
09866555513
From India, Hyderabad
Regarding P.F.Deduction if any employees basic is more than 6500 or 7000 then also we need to deduct only on the above said basic.
Ex : If A person's basic salary is Rs 9000/- then the duty of Employer is to deduct P.F on Only Rs 7000/-.
If Employee is interested to deduct his P.F on Rs 9000/- then only from employee's contribution can be submitted to P.F Dept, and the Employer's contribution up to Rs 7000/-.
Regards
Jay
09866555513
From India, Hyderabad
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Relief To Establishments Covered Under EPF From Levy Of Penalty For Delayed Deposit Of Dues Duri.pdf