hi all, Is paying PF compulsory or is there a law which states that employees getting basic above 6.5k need not be given? Waiting......... Thanks
From India, Bangalore
From India, Bangalore
Dear Kumar, Any organisation havin 20 - 25 employees will have compulsory PF account. All the permamanent, company employees will be given an individual PF number. Isaac Patturaja
From India, Madras
2From India, Madras
PF Act defines an employee as one Basic plus Da is 6500 or less per month Hence those who draw wages more than 6500 need not be covered legally.
Again, if an employee gets covered once he will continue and you can restrict your contribution to 6500.
This is legal position
Siva
From India, Chennai
Again, if an employee gets covered once he will continue and you can restrict your contribution to 6500.
This is legal position
Siva
From India, Chennai
EPF is compulsory for those stablishments employing not less than 20 employees. All employees whose salary (Basic + DA) at the time of joining is not more than Rs 6500 are covered. That means, an employee once covered will continue to be covered irrespective of any hike in his salary.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Kumar,
Provident Fund is compulsory for all organisations employing more than 20 employees. All type of employees irrespective of permenant,casual etc., but drawing Rs.650o and less are covered. But if an employee once covered,he will have to continue as a member if any hike in his salary later. If any employee drawing more than 6500 wishes not to cover under pf, the management has to obtain a letter from the employee for the same.
P.RAMACHANDRAN
From India, Madras
Provident Fund is compulsory for all organisations employing more than 20 employees. All type of employees irrespective of permenant,casual etc., but drawing Rs.650o and less are covered. But if an employee once covered,he will have to continue as a member if any hike in his salary later. If any employee drawing more than 6500 wishes not to cover under pf, the management has to obtain a letter from the employee for the same.
P.RAMACHANDRAN
From India, Madras
Hi, I have a small question on this issue. Does the standard deduction of PF 12% remain the same or it changes due to hike in a salary or any other reason. Plz guide. Thanks Mehul Mehta
From India
From India
The standard rate of contribution/ deduction remains the same, ie, 12% irrespective of salary hike. An employee can contribute a higher rate, ie, more than 12% and that is called as 'voluntary contribution' However the employer neednot contribute at a higher rate as does the employee contribute voluntarily. The voluntary contribution is not related to salary, even when the salary is less than 6500, one can opt for higher contribution.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Compulsory Detailes PF withdrawal Form.xls
HC All - Trainees not covered for PF -2010.pdf