The limit for optional PF is 6500 and not 7500... Where as that ceiling (7500) is for ESIC... Regards, Nilesh
From India, Pune
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1From India, Pune
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Hi, the discussions and points raised are really helpful. However, someone mentioned that in IT companies, there is no PF system. I am not aware of any such universal norm in the IT sector. Maybe some companies are not providing this facility to their staff. Can anyone please explain what the actual fact is?
From India, Calcutta
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From India, Calcutta
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Hi all,
Now you tell, is there a central government contribution? If yes, how much percentage? If the employer is not interested in your withdrawal, how will you withdraw? What is the difference between PF and PPF?
Regards,
Sidheshwar
From India, Bangalore
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Now you tell, is there a central government contribution? If yes, how much percentage? If the employer is not interested in your withdrawal, how will you withdraw? What is the difference between PF and PPF?
Regards,
Sidheshwar
From India, Bangalore
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Hi Sidheshwar,
Now, you tell, is there central govt contribution? If yes, how much percentage? If the employer is not interested in your withdrawal, how will you withdraw? What is the difference between PF and PPF?
The central Government's liability comes in two parts:-
* The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund:
* Monthly Member's Pension.
(1) A member shall be entitled to:
(a) superannuation pension if he has rendered eligible service of 20 years or
(b) more and retires on attaining the age of 58 years;
(c) retirement pension if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in employment before attaining the age of 58 years;
(d) short service pension if he has rendered eligible service of 10 years or more but less than 20 years.
(2) In the case of a new entrant, the amount of monthly superannuation pension or retiring pension, as the case may be, shall be computed in accordance with the following factors, namely: -
Monthly member's pension = Pensionable salary X Pensionable service / 70
Benefits to the family on the death of a member
(1) Pension to the family shall be admissible from the date following the date of death of the member if the member dies:
(a) while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund, or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to monthly member's pension but before the commencement of pension payment or
(c) after the commencement of payment of the monthly member's pension.
Note: The cases where a member has rendered less than 10 years of eligible service on the date of exit but has retained the membership of the Pension Fund and dies before attaining the age of 58 years shall be regulated under sub-paragraph (8) of paragraph 12.
(2) (a) The monthly widow pension shall be:
(i) in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly member's pension which would have been admissible as if the member had retired on the date of death or Rs 450/- or the amount indicated in Table 'C' whichever is more.
Cheers,
Rajat
From India, Pune
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Now, you tell, is there central govt contribution? If yes, how much percentage? If the employer is not interested in your withdrawal, how will you withdraw? What is the difference between PF and PPF?
The central Government's liability comes in two parts:-
* The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund:
* Monthly Member's Pension.
(1) A member shall be entitled to:
(a) superannuation pension if he has rendered eligible service of 20 years or
(b) more and retires on attaining the age of 58 years;
(c) retirement pension if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in employment before attaining the age of 58 years;
(d) short service pension if he has rendered eligible service of 10 years or more but less than 20 years.
(2) In the case of a new entrant, the amount of monthly superannuation pension or retiring pension, as the case may be, shall be computed in accordance with the following factors, namely: -
Monthly member's pension = Pensionable salary X Pensionable service / 70
Benefits to the family on the death of a member
(1) Pension to the family shall be admissible from the date following the date of death of the member if the member dies:
(a) while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund, or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to monthly member's pension but before the commencement of pension payment or
(c) after the commencement of payment of the monthly member's pension.
Note: The cases where a member has rendered less than 10 years of eligible service on the date of exit but has retained the membership of the Pension Fund and dies before attaining the age of 58 years shall be regulated under sub-paragraph (8) of paragraph 12.
(2) (a) The monthly widow pension shall be:
(i) in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly member's pension which would have been admissible as if the member had retired on the date of death or Rs 450/- or the amount indicated in Table 'C' whichever is more.
Cheers,
Rajat
From India, Pune
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Hi Rajat,
How will we withdraw PF if the employer is not processing the withdrawal form after its submission? How can we trace the PF contributions of contractors' employees who deposit PF challans common for all clients?
Regards,
Sidheshwar
From India, Bangalore
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How will we withdraw PF if the employer is not processing the withdrawal form after its submission? How can we trace the PF contributions of contractors' employees who deposit PF challans common for all clients?
Regards,
Sidheshwar
From India, Bangalore
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Hi, I am Rahul.
I can help you regarding PF.
1. It's mandatory if in a unit 20 or more employees are working.
2. The ceiling limit for PF is ₹6,500, i.e., if the basic salary of the employee is less than ₹6,500, then he is covered under the PF Act. If his basic is more than ₹6,500, he is exempted from PF.
From India, Madras
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I can help you regarding PF.
1. It's mandatory if in a unit 20 or more employees are working.
2. The ceiling limit for PF is ₹6,500, i.e., if the basic salary of the employee is less than ₹6,500, then he is covered under the PF Act. If his basic is more than ₹6,500, he is exempted from PF.
From India, Madras
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Hi, Would just like to get confirmation that if the basic salary is above 6500, the person is exempted from PF? Is it so? How do we go about it, how to claim the exemption? Best Regards' Anu
From India, Hyderabad
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From India, Hyderabad
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Hi Anu,
If Basic+DA is less than Rs 6500/-, it is compulsory for the organization to comply. However, if it is more, there is no compulsion for the employer. But, one thing to note is that if an employee is already a member of the fund and their basic+DA increases from Rs 6500/-, the employer is compelled to comply, but the employer's contribution will be calculated based on Rs 6500/- only. The employer is not bound in this regard. If there is still any confusion, please write.
Regards,
Sidheshwar
From India, Bangalore
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If Basic+DA is less than Rs 6500/-, it is compulsory for the organization to comply. However, if it is more, there is no compulsion for the employer. But, one thing to note is that if an employee is already a member of the fund and their basic+DA increases from Rs 6500/-, the employer is compelled to comply, but the employer's contribution will be calculated based on Rs 6500/- only. The employer is not bound in this regard. If there is still any confusion, please write.
Regards,
Sidheshwar
From India, Bangalore
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Hi Sidhu,
"How will we withdraw PF if the employer is not processing the withdrawal form after its submission?"
Well, most companies do not process withdrawals unless they have genuine reasons, such as if a person has embezzled or if the company has filed a case against the employee. Other than that, they have no right to withhold.
I suggest keeping a copy of the correspondence for PF submission and, after two or three reminders, filing a complaint with PF authorities. You would be surprised how prompt they are in responding to grievances, or at least they would guide you on this vexed issue.
"How will we trace the PF contributions of a contractor's employees who are depositing PF challan common for all clients?"
This is a good point. I will check and revert.
Have a great day! 😊
Cheers,
Rajat
From India, Pune
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"How will we withdraw PF if the employer is not processing the withdrawal form after its submission?"
Well, most companies do not process withdrawals unless they have genuine reasons, such as if a person has embezzled or if the company has filed a case against the employee. Other than that, they have no right to withhold.
I suggest keeping a copy of the correspondence for PF submission and, after two or three reminders, filing a complaint with PF authorities. You would be surprised how prompt they are in responding to grievances, or at least they would guide you on this vexed issue.
"How will we trace the PF contributions of a contractor's employees who are depositing PF challan common for all clients?"
This is a good point. I will check and revert.
Have a great day! 😊
Cheers,
Rajat
From India, Pune
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Hi Rajat,
Good morning.
Up to 2002, I was working with Coca-Cola, Bhopal as a labor officer, but I was through an agency. I was handling contract labor. When I left the job and approached the agency proprietor for withdrawal, every time he said he would process the withdrawal. But he didn't do anything because I had left the job against his willingness and Coke management. Not a single authority had responded.
Then I contacted one consultant who was providing services to Coke. I explained my problem, and he asked for a completed withdrawal form. I sent the form, and he processed it. Finally, I received my payment. Now, you tell me, how did he do it?
Sidhu
From India, Bangalore
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Good morning.
Up to 2002, I was working with Coca-Cola, Bhopal as a labor officer, but I was through an agency. I was handling contract labor. When I left the job and approached the agency proprietor for withdrawal, every time he said he would process the withdrawal. But he didn't do anything because I had left the job against his willingness and Coke management. Not a single authority had responded.
Then I contacted one consultant who was providing services to Coke. I explained my problem, and he asked for a completed withdrawal form. I sent the form, and he processed it. Finally, I received my payment. Now, you tell me, how did he do it?
Sidhu
From India, Bangalore
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INTERNATIONAL-W ORKERS-IWs-UNDE R-THE-EMPLOYEES ’-PROVIDENT-FUN D-SCHEME-1952-A ND-THEIR-COMPLI ANCE.pdf
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