Dear All,
Our Delhi branch is paying salary to the employees above the minimum wages in our industry at Delhi ie Rs7100.There are 180 employees at Delhi branch.It has started operating from April 2011 and is right now not covered under PF.PF is optional in our company ie employees with basic salary more than 6500 are not under PF coverage. Now the management wants no employee at Delhi should be under PF as their minimum basic is already 7100.
Please opine whether the scenario is legal or not
From Canada, Yellowknife
Our Delhi branch is paying salary to the employees above the minimum wages in our industry at Delhi ie Rs7100.There are 180 employees at Delhi branch.It has started operating from April 2011 and is right now not covered under PF.PF is optional in our company ie employees with basic salary more than 6500 are not under PF coverage. Now the management wants no employee at Delhi should be under PF as their minimum basic is already 7100.
Please opine whether the scenario is legal or not
From Canada, Yellowknife
Dear Aparajita
You are having employee strength at Delhi Office 180, legally your office is coverable even if no-body is drawing Rs. 6,500/- as basic or less than Rs. 6,500/-. You have to apply for the provident fund code no. and start compliance of the Act by paying Rs. 7/- only per month.
Secondly, you can exclude the employees who are drawing Rs. 6,500/- as basic, you have to get Form 11 filled by the employees employed at Delhi Office.
From India, Gurgaon
16You are having employee strength at Delhi Office 180, legally your office is coverable even if no-body is drawing Rs. 6,500/- as basic or less than Rs. 6,500/-. You have to apply for the provident fund code no. and start compliance of the Act by paying Rs. 7/- only per month.
Secondly, you can exclude the employees who are drawing Rs. 6,500/- as basic, you have to get Form 11 filled by the employees employed at Delhi Office.
From India, Gurgaon
Dear Aparajita
Your establishment is having employee strength at Delhi Office 180, legally your office is coverable even if no-body is drawing Rs. 6,500/- as basic or less than Rs. 6,500/-. You have to apply for the provident fund code no. and start compliance of the Act by paying Rs. 7/- only per month.
Under the provisions of Employees' Provident Fund & Miscellaneous Provisions Act, 1952, any establishment employing 20 or more employees is coverable. Now the question comes that no employee is drawing Rs. 6,500/- or less than as basic and all the employees are excluded employees. For the purpose of coverage of an establishment the Provident Fund Authority count number of employees whether they are included or excluded employees. In this situation your establishment/ company is coverable under the provisions of the Act. But it is mandatory for your establishment to pay the minimum charges Rs. 5/- under Account No. 2, and Rs. 2/- under Account No. 22.
From India, Gurgaon
Your establishment is having employee strength at Delhi Office 180, legally your office is coverable even if no-body is drawing Rs. 6,500/- as basic or less than Rs. 6,500/-. You have to apply for the provident fund code no. and start compliance of the Act by paying Rs. 7/- only per month.
Under the provisions of Employees' Provident Fund & Miscellaneous Provisions Act, 1952, any establishment employing 20 or more employees is coverable. Now the question comes that no employee is drawing Rs. 6,500/- or less than as basic and all the employees are excluded employees. For the purpose of coverage of an establishment the Provident Fund Authority count number of employees whether they are included or excluded employees. In this situation your establishment/ company is coverable under the provisions of the Act. But it is mandatory for your establishment to pay the minimum charges Rs. 5/- under Account No. 2, and Rs. 2/- under Account No. 22.
From India, Gurgaon
Dear Mr Azad,
As advised I had escalated the matter to my senior. Now he wants me to show him where the clause is mentioned. I shall be highly thankful if you kindly quote the site or the book where I can find the clause.
From Canada, Yellowknife
As advised I had escalated the matter to my senior. Now he wants me to show him where the clause is mentioned. I shall be highly thankful if you kindly quote the site or the book where I can find the clause.
From Canada, Yellowknife
Dear Aparajita
For your information I am reproducing the Employees' Provident Funds & Miscellaneous Provisions Act, 1952.
[(1) This Act may be called the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.]
(2) It extends to the whole of India except the State of Jammu and Kashmir.
2[(3) Subject to the provisions contained in Sec. 16, it applies, -
(a) To every establishment which is a factory engaged in any industry specified in Sch.1 and in which 3[twenty] or more persons are employed, and
(b) To any other establishment employing 3[twenty] or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf
(f) “Employee” means any person who is employed for wages in any kind of work , manual or otherwise , in or in connection with the work of 7|[an establishment , and who gets his wages directly or in directly from the employer, 8[and includes any person , -
(i) Employed by or through a contractor in or in connection with the work of the establishment;
(ii) Engaged as an apprentice , not being an apprentice engaged under the Apprentices , not being an apprentice engaged under the Apprentices Act, 1962(52 of 1961), or under the standing orders of the establishment ;]
Administrative Charges
Employees' Provident Fund Scheme:
1.10% of total wages on which Provident Fund is recovered subject to a minimum of Rs. 5/- shall be payable by the employer every month . Prior to 1.8.98, w.e.f. 1.8.98 .65% of total wages
Employees' Pension Scheme Scheme:
No administrative charges are payable by the employer .The entire cost of administration is met by Central Government .
Employees' Deposit Linked Insurance Scheme:
0.01% of the total on which the Employees' Deposit Linked Insurance contributions recovered subject to a minimum of Rs. 2/- per month .
From India, Gurgaon
For your information I am reproducing the Employees' Provident Funds & Miscellaneous Provisions Act, 1952.
[(1) This Act may be called the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.]
(2) It extends to the whole of India except the State of Jammu and Kashmir.
2[(3) Subject to the provisions contained in Sec. 16, it applies, -
(a) To every establishment which is a factory engaged in any industry specified in Sch.1 and in which 3[twenty] or more persons are employed, and
(b) To any other establishment employing 3[twenty] or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf
(f) “Employee” means any person who is employed for wages in any kind of work , manual or otherwise , in or in connection with the work of 7|[an establishment , and who gets his wages directly or in directly from the employer, 8[and includes any person , -
(i) Employed by or through a contractor in or in connection with the work of the establishment;
(ii) Engaged as an apprentice , not being an apprentice engaged under the Apprentices , not being an apprentice engaged under the Apprentices Act, 1962(52 of 1961), or under the standing orders of the establishment ;]
Administrative Charges
Employees' Provident Fund Scheme:
1.10% of total wages on which Provident Fund is recovered subject to a minimum of Rs. 5/- shall be payable by the employer every month . Prior to 1.8.98, w.e.f. 1.8.98 .65% of total wages
Employees' Pension Scheme Scheme:
No administrative charges are payable by the employer .The entire cost of administration is met by Central Government .
Employees' Deposit Linked Insurance Scheme:
0.01% of the total on which the Employees' Deposit Linked Insurance contributions recovered subject to a minimum of Rs. 2/- per month .
From India, Gurgaon
Dear Mr. Mukesh,
Thanks for sharing your valuable knowledge on PF.
I have also a question similar to this, my company is not have the ESI Code, coz, no one in the company comes under 15000/ Gross. So, now the question is, do we need to get the code atleast for ESI? if yes, would you please define the clause..
Would also like to add: the employees who are under 15000, they are through consultants, not on our payroll.
Regards,
Kunal Kumar
From India, Mumbai
Thanks for sharing your valuable knowledge on PF.
I have also a question similar to this, my company is not have the ESI Code, coz, no one in the company comes under 15000/ Gross. So, now the question is, do we need to get the code atleast for ESI? if yes, would you please define the clause..
Would also like to add: the employees who are under 15000, they are through consultants, not on our payroll.
Regards,
Kunal Kumar
From India, Mumbai
Dear Kunal
The Employees' State Insurance Act, 1948 is little bit different then the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. First of all, if your company is a manufacturing unit and your company is doing production with the aid of power, then the establishment will be covered under the provisions of ESI Act with 10 or more employees, if your company is a manufacturing unit and your company is doing production without aid of power or trading company, then the establishment will be covered under the provisions of ESI Act with 20 and the ESI Authority will count the employee strength who are drawing Rs. 15,000/- (including all the allowances) or less then Rs. 15,000/-.
If your company is not in the above preview, then it is not required for your establishment to get the code no. of ESI.
From India, Gurgaon
The Employees' State Insurance Act, 1948 is little bit different then the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. First of all, if your company is a manufacturing unit and your company is doing production with the aid of power, then the establishment will be covered under the provisions of ESI Act with 10 or more employees, if your company is a manufacturing unit and your company is doing production without aid of power or trading company, then the establishment will be covered under the provisions of ESI Act with 20 and the ESI Authority will count the employee strength who are drawing Rs. 15,000/- (including all the allowances) or less then Rs. 15,000/-.
If your company is not in the above preview, then it is not required for your establishment to get the code no. of ESI.
From India, Gurgaon
Dear team,
i would like to add that in case an establishment, wherein employees drawing rs.15000 n above though not covered under ESI. has contractor/s who engage less than 20 workmen and drawing wages less than rs.15000/-, though the contractor not covered under ESI, the establishment/PE is under obligation to apply for ESI code and make the contractor to comply with ESI provisions.
Regards
svsrao
From India
i would like to add that in case an establishment, wherein employees drawing rs.15000 n above though not covered under ESI. has contractor/s who engage less than 20 workmen and drawing wages less than rs.15000/-, though the contractor not covered under ESI, the establishment/PE is under obligation to apply for ESI code and make the contractor to comply with ESI provisions.
Regards
svsrao
From India
Dear Sir,
PF is applicable on employees whose Basic plus DA is less than 6500/-. Is it less than or equal to ?
Further seniours guidance is needed, as I am new in this area, what is amount to be deposited with PF authorites and in which accounts ?
Employees contribution - A/c No.
Employer's Contribution - A/c No. (What are EPF/FPF, EDLI and Admin Charges and who these are divided and in which account these are to be deposited ?)
If there is delay in getting registration after the employees strength is more than the prescribed limit, what are the demurrage, penalty and interest and who this is to be paid.
Devender
From India, New Delhi
PF is applicable on employees whose Basic plus DA is less than 6500/-. Is it less than or equal to ?
Further seniours guidance is needed, as I am new in this area, what is amount to be deposited with PF authorites and in which accounts ?
Employees contribution - A/c No.
Employer's Contribution - A/c No. (What are EPF/FPF, EDLI and Admin Charges and who these are divided and in which account these are to be deposited ?)
If there is delay in getting registration after the employees strength is more than the prescribed limit, what are the demurrage, penalty and interest and who this is to be paid.
Devender
From India, New Delhi
Since the estt. is a branch at Delhi, as such by virtue of being a branch of a covered estt, the delhi branch is automatically covered under section 2-A of the Act.
As regards PF contributions are concerned, all employees who were earlier a member of EPF prior to joining of this Delhi branch, are to be made members statutorily.
Amongst new entrants, those who are falling under the definition of employee, i.e. drawing 6500 or less, will have to be made members statutorily.
Those drawing more than 6500 at the time of joining and were not a member of EPF earlier,they are excluded employee but they have the option to become a member provided employer gives consent and ready to comply under the schemes.
Rs. 7 is to be deposited every month only in cases where the covered estt. is closed or there is no member in the estt.
A.K.CHANDOK
RPFC (Retired)
chandokak@ yahoo.co.in
<link no longer exists - removed>
09988021715
From India, Chandigarh
As regards PF contributions are concerned, all employees who were earlier a member of EPF prior to joining of this Delhi branch, are to be made members statutorily.
Amongst new entrants, those who are falling under the definition of employee, i.e. drawing 6500 or less, will have to be made members statutorily.
Those drawing more than 6500 at the time of joining and were not a member of EPF earlier,they are excluded employee but they have the option to become a member provided employer gives consent and ready to comply under the schemes.
Rs. 7 is to be deposited every month only in cases where the covered estt. is closed or there is no member in the estt.
A.K.CHANDOK
RPFC (Retired)
chandokak@ yahoo.co.in
<link no longer exists - removed>
09988021715
From India, Chandigarh
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PF for foreign employees 1.10.08.pdf