1.first check the PF act is applicable to your arae or not
2.there are two kinds of organisations. one exempt and other not exempt. In the former the company can have its own fund and will control the funds as per the directiions. other we have to follow the procedure laid down by the act and rules.
3. Any employee who draws morethan 6500 has to be covered under the act.
4. in case it is more than 6500/ per month (Basic and DA), the company will have two options
a. not to cover them, because there are no legal obligataions
b. to get th eemployee's good will they will be covered. again there are two more sub-options
a. if the company wants to cover them let them be covered to the extent of 6500/ only for the remaining amount need not be covered
b. to cover them for the full ammount
But i always feel that we should follow the law. Don't cover them. But they can b reimbursed in many other ways. This will keep the employee happy and also we are following the law to avoid complications
nagaraj
From India, Bangalore
12.there are two kinds of organisations. one exempt and other not exempt. In the former the company can have its own fund and will control the funds as per the directiions. other we have to follow the procedure laid down by the act and rules.
3. Any employee who draws morethan 6500 has to be covered under the act.
4. in case it is more than 6500/ per month (Basic and DA), the company will have two options
a. not to cover them, because there are no legal obligataions
b. to get th eemployee's good will they will be covered. again there are two more sub-options
a. if the company wants to cover them let them be covered to the extent of 6500/ only for the remaining amount need not be covered
b. to cover them for the full ammount
But i always feel that we should follow the law. Don't cover them. But they can b reimbursed in many other ways. This will keep the employee happy and also we are following the law to avoid complications
nagaraj
From India, Bangalore
PF can be optional ;
1) if the emplyer is emplying less then 20 employees PF and miscellaneous provisions act and rules made there under is not applecable to that organisation.
2) if the employer is employing 20 or more then employees then it can take exemption from the above mentioned act from the RPFC .
3) For an organisation which is covered under the above mentioned act and an employees wants to get exempted ( if his salary is Rs. 6500/- PM or less then Rs. 6500/- PM) he can seek special permission from the RPFC.
4) if his salary is more then Rs. 6500/- PM he can seek exemtion from his employer by giving a written statement of exemtption.
I hope this is wat u require.
Thnks
Shekhar
From India, Jaipur
1) if the emplyer is emplying less then 20 employees PF and miscellaneous provisions act and rules made there under is not applecable to that organisation.
2) if the employer is employing 20 or more then employees then it can take exemption from the above mentioned act from the RPFC .
3) For an organisation which is covered under the above mentioned act and an employees wants to get exempted ( if his salary is Rs. 6500/- PM or less then Rs. 6500/- PM) he can seek special permission from the RPFC.
4) if his salary is more then Rs. 6500/- PM he can seek exemtion from his employer by giving a written statement of exemtption.
I hope this is wat u require.
Thnks
Shekhar
From India, Jaipur
The Employees Provident Funds and Miscellaneous Provision Act, 1952 basically came into existance, to ensure compulsory PF, EPS etc for the benefit of employees.
Assuming your company comes under the act, (check appilcability), it is a compulsory provision for them to follow. So I guess even if the employee doesnt want to, the company has to.
:-D
Lets see what others say.
Rgds
From India, Visakhapatnam
Assuming your company comes under the act, (check appilcability), it is a compulsory provision for them to follow. So I guess even if the employee doesnt want to, the company has to.
:-D
Lets see what others say.
Rgds
From India, Visakhapatnam
Dear Jhuma,
Optional PF is in only one condition. That is....when employee's Basic Pay is More than equal to 10,000/- pm.
Other wise it is compulsory to deduct and make same contribution by the employeer.
I hope it make sense 4 u...
Thanx & Rgds
Bhagwan Tolani
Sr. HR.
TM Group
Mumbai
From India, Mumbai
Optional PF is in only one condition. That is....when employee's Basic Pay is More than equal to 10,000/- pm.
Other wise it is compulsory to deduct and make same contribution by the employeer.
I hope it make sense 4 u...
Thanx & Rgds
Bhagwan Tolani
Sr. HR.
TM Group
Mumbai
From India, Mumbai
No one can deny the PF withdrawal or transfer, if employer dining goes to near PF office, one cell is there vigilance department write the application mention company and your PF number and company name after that the employer will call you for the compromise.
if you have any problem call to area pf inspector better (you can call to main office and ask for area inspector mobile number)
Riyaz
From India, Delhi
if you have any problem call to area pf inspector better (you can call to main office and ask for area inspector mobile number)
Riyaz
From India, Delhi
Please appreciate the following:
1. If an organization is eligible for coverage under the PF Act/Scheme, it is mandatory, not optional.
2. If all employees are on a salary of Rs.6500/- or more, coverage is not necessary.
3. If an employee, who was a PF member in his earlier Co. joins another Co. wich is not covered under PF, he will not enjoy the benefits of PF since the new Co. is not covered under the PF ACT.
4. However, most progressive organizations, irrespective of the qualifying criteria, do extend the benefit of PF to its employees.
Best Wishes,
Vasant Nair
From India, Mumbai
1. If an organization is eligible for coverage under the PF Act/Scheme, it is mandatory, not optional.
2. If all employees are on a salary of Rs.6500/- or more, coverage is not necessary.
3. If an employee, who was a PF member in his earlier Co. joins another Co. wich is not covered under PF, he will not enjoy the benefits of PF since the new Co. is not covered under the PF ACT.
4. However, most progressive organizations, irrespective of the qualifying criteria, do extend the benefit of PF to its employees.
Best Wishes,
Vasant Nair
From India, Mumbai
i think , In case of less than 20 employees , its the wish of the employeer to give pf or not ..... it is of voluntary basis if less than 20 employees...........
and regarding that 12% i think 10% from basic and 2% from da.........
From India, Pondicherry
and regarding that 12% i think 10% from basic and 2% from da.........
From India, Pondicherry
Dear Mr. Rational Raj,
First of all I would like to clarify that lengthy questions will never get you replies, people have no time to read. Secondly a simple question will always give you different perspectives and learnings.
I am sure all of us have atleast some new info out of it. Even we are aware of basics but there was a reason for posting this question.
Even I refrain from posting non relevant mails.I am sure that this question was not a wastage of server space and time.
[
QUOTE=rationalraj;867625]I just would like to point out that some members use the cite to shirk doing minimum work on their own.look at this question* Is paying PF optional?"Young members should read the basics & ask clarifications where intricate interpretations are involved or there is a lack of clarity.
A casual approach could put you in difficuliy since you are blindly depending on opinions of individuals. The basic law is not opinion & it has to be read.
This is a valuable & useful cite. But use it with discretion for best benefits. " I would like to start an ADVt firm. Can anyone give suggestions?" like queries would not be in the spirit of a cite of serious HR professionals.
Warm Regards
Rationalraj[/QUOTE]
From India, Mumbai
First of all I would like to clarify that lengthy questions will never get you replies, people have no time to read. Secondly a simple question will always give you different perspectives and learnings.
I am sure all of us have atleast some new info out of it. Even we are aware of basics but there was a reason for posting this question.
Even I refrain from posting non relevant mails.I am sure that this question was not a wastage of server space and time.
[
QUOTE=rationalraj;867625]I just would like to point out that some members use the cite to shirk doing minimum work on their own.look at this question* Is paying PF optional?"Young members should read the basics & ask clarifications where intricate interpretations are involved or there is a lack of clarity.
A casual approach could put you in difficuliy since you are blindly depending on opinions of individuals. The basic law is not opinion & it has to be read.
This is a valuable & useful cite. But use it with discretion for best benefits. " I would like to start an ADVt firm. Can anyone give suggestions?" like queries would not be in the spirit of a cite of serious HR professionals.
Warm Regards
Rationalraj[/QUOTE]
From India, Mumbai
hi,
First, it is a statutory compliance to deduct PF if the employee of an organisation whose strength is 20 or more, is getting 6500/- or less per month(Basic + DA only).
and beyond the crossing the selling of P.F. it totally depands upon emloyer whether he provides or not.
With regards
Balvinder Singh
From India, Delhi
First, it is a statutory compliance to deduct PF if the employee of an organisation whose strength is 20 or more, is getting 6500/- or less per month(Basic + DA only).
and beyond the crossing the selling of P.F. it totally depands upon emloyer whether he provides or not.
With regards
Balvinder Singh
From India, Delhi
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls