I fully agree with Mr. Jeevarathnam PF will be applicable if the Basic + DA is equivalent to Rs. 6500/- or less, but to avoid PF applicability it is not advisable to change the Salary structure. Being in HR you must have formed Salary Structure according to the RL of the employee in your organisation. We cannot change the salary structure as per the whimps and fancies of any employee.
Regards
Saji
From India, Ahmadabad
734Regards
Saji
From India, Ahmadabad
Dear Vineeth,
As per section 17 (2) to be read with para 27 of EPF act, an employee can be exempted from being the member, if he is drawing more than Rs. 6500/- but that has to happen during the start of his career before any PF account is opened. If he is fulfilling this clause, he can apply on Form 11 through his employer and RPFC will be the one who will authorise the exemption after verifying the fact of the case.
Here, it is to be noted that withdrawal of EPF on resignation is illegal. A member can only transfer his account to his new company, if he is joining within two months from the date of his resignation from his old company. There are lot of clauses like covered establishment and exempted establishment, which is involved during one's resignation from a company and joining other company. And hence one has to be very careful in asking for exemption since he is liable for punishment, if he is found guilty of having withdrawn the amount during his career life. For details, you can read the act in between the lines.
Regards,
P. Vathiraj
095853 33344
From India
As per section 17 (2) to be read with para 27 of EPF act, an employee can be exempted from being the member, if he is drawing more than Rs. 6500/- but that has to happen during the start of his career before any PF account is opened. If he is fulfilling this clause, he can apply on Form 11 through his employer and RPFC will be the one who will authorise the exemption after verifying the fact of the case.
Here, it is to be noted that withdrawal of EPF on resignation is illegal. A member can only transfer his account to his new company, if he is joining within two months from the date of his resignation from his old company. There are lot of clauses like covered establishment and exempted establishment, which is involved during one's resignation from a company and joining other company. And hence one has to be very careful in asking for exemption since he is liable for punishment, if he is found guilty of having withdrawn the amount during his career life. For details, you can read the act in between the lines.
Regards,
P. Vathiraj
095853 33344
From India
Hi,
PF Exemption is different than PF membership exemption.No one exempted from PF exemption.However an employee can opt for not paying contribution provided his basic is ABOVE 6500.
Hope This clears.Pf is a social security aspect and hence mandatory and benificial too.
Thanks and regards.
bijay
From India, Vadodara
PF Exemption is different than PF membership exemption.No one exempted from PF exemption.However an employee can opt for not paying contribution provided his basic is ABOVE 6500.
Hope This clears.Pf is a social security aspect and hence mandatory and benificial too.
Thanks and regards.
bijay
From India, Vadodara
yes both needs to contribute
it will difer frm company to compnay
as per form 1,2,10,21,22
form1:
emplyer contributn-12%
employee-3.67%
form 2:
admin epf-1.10%
form10:
empl pensn fund-8.33%
form 21
deposit link insurance-0.5%
form22
admin dli-0.01%
From India, Mumbai
it will difer frm company to compnay
as per form 1,2,10,21,22
form1:
emplyer contributn-12%
employee-3.67%
form 2:
admin epf-1.10%
form10:
empl pensn fund-8.33%
form 21
deposit link insurance-0.5%
form22
admin dli-0.01%
From India, Mumbai
As per my knowledge any company will be regulated by state or central act in which it is registered. though their no specific MW and DA for EPF deduction their is fixed wage ceiling one can follow. similarly, If any dispute arises out of employment to any employee once has to follows ID shop act of the conecrned state. Then the final guide line will be the MW specified by the Shop Act State or central or service rules framed of an organization. Hence better to follows shop act or polices framed by the company while fixing the TCC to an employee. The MW as per shop act is Basic +VDA= minimum wage or salary. above that if any amount fixed then it can be shown in other components such as HRA CA or OA etc.,
yours
NC
From India, Hyderabad
yours
NC
From India, Hyderabad
Goodevening dear all, My self amar from hyderabad, working with security company, but here i dont know about Pf and Esi online Process/preocedure, please guide me.
From India, Hyderabad
From India, Hyderabad
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Exemption under Sec.17(1)(a) of PF Act 18.11.2011.pdf