I have some questions related to PF:
1) Is the company already contributing the employer's share on Rs 6500 and above? Can they limit their contribution to Rs 6500?
If the company contribution is ongoing, the company cannot stop it. However, they have the option with new joinings under para 34 of PF Rules.
2) In point No. 01, can the company completely cease paying contributions since the employees are already above Rs 6500?
No, if the PF membership is active, it cannot be stopped.
3) If the company is paying for all old employees as per Point No. 1, can they exclude new employees (earning above Rs 6500) from the liability?
Yes, they can refer to para 34 of PF rules.
4) If the answer to Points 1, 2, 3 is YES, then what formalities should be completed to ensure compliance? I would appreciate a point-by-point reply for clarification.
For more information, please visit https://www.citehr.com/460492-pf-lia...#ixzz2TcFdsEBb
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1) Is the company already contributing the employer's share on Rs 6500 and above? Can they limit their contribution to Rs 6500?
If the company contribution is ongoing, the company cannot stop it. However, they have the option with new joinings under para 34 of PF Rules.
2) In point No. 01, can the company completely cease paying contributions since the employees are already above Rs 6500?
No, if the PF membership is active, it cannot be stopped.
3) If the company is paying for all old employees as per Point No. 1, can they exclude new employees (earning above Rs 6500) from the liability?
Yes, they can refer to para 34 of PF rules.
4) If the answer to Points 1, 2, 3 is YES, then what formalities should be completed to ensure compliance? I would appreciate a point-by-point reply for clarification.
For more information, please visit https://www.citehr.com/460492-pf-lia...#ixzz2TcFdsEBb
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In some cases where the CTC is applicable companies do not pay the partial amount from their own but they deduct and deposit the employer part as well as employee part from the CTC of the employee.
From India, Lucknow
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191From India, Lucknow
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Dear Madhu Sir,
Please let me know if an employee was a member of PF in their previous organization, is the new organization liable to provide membership if the employee desires it. Is it possible for the organization to not deduct the employee's PF share even if they were a member already?
Thank you.
From India, Shahkot
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Please let me know if an employee was a member of PF in their previous organization, is the new organization liable to provide membership if the employee desires it. Is it possible for the organization to not deduct the employee's PF share even if they were a member already?
Thank you.
From India, Shahkot
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A break up of salary with employer’s contribution to PF shown as cost to company is common now a days but deducting both the share from the salary of employee is not legal.
As discussed, an employer is expected (I can only say that it is expected from a prudent employer who wishes to follow all laws) to give coverage to a new employee who has been a member of PF with the previous employer even if his PF qualifying salary at the time of joining exceeds Rs 6500. At the same time there are employers who do not even care to give coverage even to those whose salary does not exceed Rs 6500. PF organisation can take action against them, but I am not sure if all are charged for this offence.
Madhu.T.K
From India, Kannur
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As discussed, an employer is expected (I can only say that it is expected from a prudent employer who wishes to follow all laws) to give coverage to a new employee who has been a member of PF with the previous employer even if his PF qualifying salary at the time of joining exceeds Rs 6500. At the same time there are employers who do not even care to give coverage even to those whose salary does not exceed Rs 6500. PF organisation can take action against them, but I am not sure if all are charged for this offence.
Madhu.T.K
From India, Kannur
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