I am owner of a Small Manufacturing Unit, PROVIDEND FUND is levied from past 15 years.
Earlier I had a work strenght of 15 labours including office staff, but now after recession and cut throat competition, some advancement in production, my work force has now reduced to 7-8 labours including Office staff from past 6-7 years.
Considering the Inflation and higher standard of living, the labours are now very much reluctant in deduction of P.F. and are arguing for abolition of P.F. from the organisation.
Can you please guide on this matter and help me terminate P.F. from my Organisation.
From India, Akola
2Earlier I had a work strenght of 15 labours including office staff, but now after recession and cut throat competition, some advancement in production, my work force has now reduced to 7-8 labours including Office staff from past 6-7 years.
Considering the Inflation and higher standard of living, the labours are now very much reluctant in deduction of P.F. and are arguing for abolition of P.F. from the organisation.
Can you please guide on this matter and help me terminate P.F. from my Organisation.
From India, Akola
Chirag Once PF act is applicable to your company then; even your strength get reduced below applicability strength you need to pay PF you cannot abolish it. Arun J.
From India, Hyderabad
From India, Hyderabad
And what if I have a newly recruited staff having salary above Rs.10000/- and they are demanding to avoid the option of P.F. since their pay is above Rs.6500/- because as per law it is provided that if the Basic + DA exceeds Rs.6500/-, then P.F. is applicable only after mutual consent of both employer and employee.
From India, Akola
From India, Akola
Dear Chirag,
I am in agreement with the comments given by Arun J.
Please note that you will only apply for cancellation of PF registration before the PF Authorities , if the company is fully closed down.
However, You may avoid paying PF contribution for new employee joining now at a salary exceeding Rs 6,500/ (Basic,DA & Retention Allowance ) per month.
Regards,
From India, Calcutta
I am in agreement with the comments given by Arun J.
Please note that you will only apply for cancellation of PF registration before the PF Authorities , if the company is fully closed down.
However, You may avoid paying PF contribution for new employee joining now at a salary exceeding Rs 6,500/ (Basic,DA & Retention Allowance ) per month.
Regards,
From India, Calcutta
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Even this could be avoided only for the next one month or so by which time the amendment under issue of notification enhancing from 6500 to 15000/- would be brought to effect either in Sept. or Oct.'14.
From India, Bangalore
Even this could be avoided only for the next one month or so by which time the amendment under issue of notification enhancing from 6500 to 15000/- would be brought to effect either in Sept. or Oct.'14.
From India, Bangalore
Dear all,
I agree with the submission of Mr. Majumdar but don't forget to obtain a declaration in form 11 that the new joiner was never a member of the EPF anywhere else.
Also please keep in your mind the ongoing amendment of ceiling limit which is expected at Rs.15000/- and you will not be able to decrease / restructure wage into allowances for reducing the EPF liability.
P K Sharma
From India, Delhi
I agree with the submission of Mr. Majumdar but don't forget to obtain a declaration in form 11 that the new joiner was never a member of the EPF anywhere else.
Also please keep in your mind the ongoing amendment of ceiling limit which is expected at Rs.15000/- and you will not be able to decrease / restructure wage into allowances for reducing the EPF liability.
P K Sharma
From India, Delhi
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Provident fund.zip
TN Labour Welfare Fund 2018.pdf
PROVIDENT FUND.rar