Employees whose salary (Basic+DA) is Rs. 6500/- or below are eligible to be covered under the EPF Act. Deduction of PF is proportionate to the actual number of days an employee worked during the month. Of course, EL/PL should be taken into consideration for this purpose.
So, if any employee worked for 20 days during the month, deductions of the employee's and employer's share should be calculated accordingly.
Eswararao Ivaturi.
From United States, Cupertino
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17So, if any employee worked for 20 days during the month, deductions of the employee's and employer's share should be calculated accordingly.
Eswararao Ivaturi.
From United States, Cupertino
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To Disha G. The contribution of Rs. 520/-is correct,as posted by ABBAS,KULKARNI,MATHEW JAYANT_ Corporate manager-H.R./I.R. 7875757963
From India, Pune
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From India, Pune
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Dear All Seniors,
Thank you very much for your very useful and valuable support. I really appreciate your response.
Sir, I also need your help with Gratuity Withdrawal for our employees. We deposit the Gratuity amount into LIC, and there are two cases:
1. One of the employees has completed 4 years, 5 months, and 28 days in the organization. My question is, can he withdraw the Gratuity?
2. One of the employees joined our organization 10 months ago and passed away 3 months ago. Can we withdraw his Gratuity from LIC?
Please assist me with both cases, and if possible, kindly send me the claim form that we need to submit to LIC for Gratuity withdrawal.
Thank you in advance.
Disha G.
From India, Ahmedabad
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Thank you very much for your very useful and valuable support. I really appreciate your response.
Sir, I also need your help with Gratuity Withdrawal for our employees. We deposit the Gratuity amount into LIC, and there are two cases:
1. One of the employees has completed 4 years, 5 months, and 28 days in the organization. My question is, can he withdraw the Gratuity?
2. One of the employees joined our organization 10 months ago and passed away 3 months ago. Can we withdraw his Gratuity from LIC?
Please assist me with both cases, and if possible, kindly send me the claim form that we need to submit to LIC for Gratuity withdrawal.
Thank you in advance.
Disha G.
From India, Ahmedabad
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Dear Disha G.
The arrangement of payment of Gratuity by subscribing to the LIC group Gratuity Scheme has many benefits to employees. One such benefit is that, (I am a bit hesitant in calling this a benefit in this case) in the event of the death of an employee while in service, the successors get the entire amount of Gratuity as if the deceased had worked until his retirement. So, as regards your case no. 2, please go for the claim of the entire amount by considering the 10 months of service he rendered with the company prior to his death together with the future part of years until he would have been retired.
As regards case 1, the period of service is just a little short of the 5-year mark. However, you have not mentioned the reason for his leaving service. Please note that the reason for leaving is an important factor in deciding Gratuity. What I suggest is that instead of being overly emphatic and too clerical about the period of service, I can safely say that the employee is entitled to gratuity. The benefit of a minor shortfall should go to the employee.
Adv. K. H. Kulkarni
From India, Kolhapur
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The arrangement of payment of Gratuity by subscribing to the LIC group Gratuity Scheme has many benefits to employees. One such benefit is that, (I am a bit hesitant in calling this a benefit in this case) in the event of the death of an employee while in service, the successors get the entire amount of Gratuity as if the deceased had worked until his retirement. So, as regards your case no. 2, please go for the claim of the entire amount by considering the 10 months of service he rendered with the company prior to his death together with the future part of years until he would have been retired.
As regards case 1, the period of service is just a little short of the 5-year mark. However, you have not mentioned the reason for his leaving service. Please note that the reason for leaving is an important factor in deciding Gratuity. What I suggest is that instead of being overly emphatic and too clerical about the period of service, I can safely say that the employee is entitled to gratuity. The benefit of a minor shortfall should go to the employee.
Adv. K. H. Kulkarni
From India, Kolhapur
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Dear sir, Madam
I have one query, please let me give the solution.
i am in hr dept looking for pf and esic one year back issues mistake. active employee pf settled but till date i have paid the pf amount same number
Please give me solution about this query… please
From India, Ahmedabad
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I have one query, please let me give the solution.
i am in hr dept looking for pf and esic one year back issues mistake. active employee pf settled but till date i have paid the pf amount same number
Please give me solution about this query… please
From India, Ahmedabad
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Dear Sir, Madam,
I have one query. Please let me know the solution. PF is settled after around 5 years of service, but the employee has been working till date. What is the next step for a resigned employee? Instead of an active employee, the PF was settled, but the employee has been working with the same organization and under the same PF number.
Please provide a solution for this.
Thank you.
From India, Ahmedabad
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I have one query. Please let me know the solution. PF is settled after around 5 years of service, but the employee has been working till date. What is the next step for a resigned employee? Instead of an active employee, the PF was settled, but the employee has been working with the same organization and under the same PF number.
Please provide a solution for this.
Thank you.
From India, Ahmedabad
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Hello, PF is deducted on Basic and DA. Employees who join the organization and draw Rs. 6500/- or below are covered. After joining the organization, even though the limit is crossed, the PF is deducted on Rs. 6500/- only. This amount is calculated based on actual working days during the month, taking into account any paid leave.
Eswararao Ivaturi. Beyond this, employees can.
From United States, Cupertino
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Eswararao Ivaturi. Beyond this, employees can.
From United States, Cupertino
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You can go ahead and calculate PF on 20 days pro-rated Basic salary. That’s the norm for PF deduction, and it is never on the basis of Wages, rather it is on Wages earned.
From India, Chennai
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From India, Chennai
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Dear all,
I had an occasion to discuss the matter with RPFC, and he was of the firm opinion that there cannot be any proportionate reduction in PF contribution in relation to the attendance of the employee. PF is payable on the wages earned and not on the rate of wages. So if the employee draws wages in excess of Rs. 6500/- even though there is a reduction for the absence, then PF is payable for the amount of Rs. 6500/-. But if the wages go below Rs. 6500/-, it has to be on the full amount.
Is there any guideline from the office of the Chief PF Commissioner?
KK
From India, Bhopal
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I had an occasion to discuss the matter with RPFC, and he was of the firm opinion that there cannot be any proportionate reduction in PF contribution in relation to the attendance of the employee. PF is payable on the wages earned and not on the rate of wages. So if the employee draws wages in excess of Rs. 6500/- even though there is a reduction for the absence, then PF is payable for the amount of Rs. 6500/-. But if the wages go below Rs. 6500/-, it has to be on the full amount.
Is there any guideline from the office of the Chief PF Commissioner?
KK
From India, Bhopal
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K. K. Nair,
If your opinion is accepted, a person who works for all days of the month and has not will get equal contribution. The RPFC would have said so to get more money to fund. On my inquiry with Kerala PF official, proportionate recovery is correct.
Varghese Mathew
From India, Thiruvananthapuram
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If your opinion is accepted, a person who works for all days of the month and has not will get equal contribution. The RPFC would have said so to get more money to fund. On my inquiry with Kerala PF official, proportionate recovery is correct.
Varghese Mathew
From India, Thiruvananthapuram
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