Hi Smitaa,
I am receiving many confusing inputs regarding PF. We are a small organization with 25 employees. Most of them have a basic salary higher than 6500. We do not have DA. So, is PF registration mandatory?
Secondly, one of my friends informed me that PF is not compulsory for the first three operating years of any organization. Is this true?
Thanks,
Smitaa
From India, Mumbai
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I am receiving many confusing inputs regarding PF. We are a small organization with 25 employees. Most of them have a basic salary higher than 6500. We do not have DA. So, is PF registration mandatory?
Secondly, one of my friends informed me that PF is not compulsory for the first three operating years of any organization. Is this true?
Thanks,
Smitaa
From India, Mumbai
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An organization with 25 employees will be covered by EPF. Since all are drawing a salary not less than 6500, the employees are not covered. However, monthly returns in Form 12 and annual returns in Form 3A are to be filed.
There is no infancy protection now available.
Regards, Madhu.T.K
From India, Kannur
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4482There is no infancy protection now available.
Regards, Madhu.T.K
From India, Kannur
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in that case pension amonut is same alredy deposited , on the basis increase basic as arrear calcultion 12% will be deposit.
From India, New Delhi
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From India, New Delhi
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Dear All, Please let me know if a company, which is a Proprietor ship, is it compulsory to have a pf account or it depends solely on the owner’s decision? Please let me know....
From India, Kakinada
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From India, Kakinada
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Dear All,
Greetings!
I am working with Essar. With reference to the expert advice of Ms. Madhu regarding the compulsion of PF, once an employee is covered, they will continue to be covered under the EPF. Upon leaving the organization and joining a new company with a salary of not less than 6500, they can opt for exemption.
I have observed a case in which PF membership is being discontinued at the employee's request. His contribution was sent for a month, and he is still an employee of this organization.
Could you please advise if this action complies with the law? If not, can the PF authorities verify this, and what could be the potential consequences?
Thank you in anticipation.
Regards,
Janki Jani
From India, Mumbai
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Greetings!
I am working with Essar. With reference to the expert advice of Ms. Madhu regarding the compulsion of PF, once an employee is covered, they will continue to be covered under the EPF. Upon leaving the organization and joining a new company with a salary of not less than 6500, they can opt for exemption.
I have observed a case in which PF membership is being discontinued at the employee's request. His contribution was sent for a month, and he is still an employee of this organization.
Could you please advise if this action complies with the law? If not, can the PF authorities verify this, and what could be the potential consequences?
Thank you in anticipation.
Regards,
Janki Jani
From India, Mumbai
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Dear Jani,
The same is not correct as per PF rules; once a member will always be a member, even if his salary increases from 6500 to 15,000/-. His contribution is payable on 6500/-. But once the member withdraws the PF amount and settles his/her account with the PF department, then he/she will cease to be a member of the PF Fund. The example given by you may cause a problem for the employer; the contribution is liable to be paid in respect of such a member and cannot be discontinued.
You can do one thing: ask the member for resignation and withdraw his/her PF amount. Then, upon a fresh appointment with a salary more than Rs. 6500/-, have the member fill out Form 11, stating, "I am not a member of PF amount." However, it amounts to unfair labor practice as you deprive him of benefits pertaining to continuity of service. I hope this satisfies your query.
Regards,
Janki Jani
From India, Delhi
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The same is not correct as per PF rules; once a member will always be a member, even if his salary increases from 6500 to 15,000/-. His contribution is payable on 6500/-. But once the member withdraws the PF amount and settles his/her account with the PF department, then he/she will cease to be a member of the PF Fund. The example given by you may cause a problem for the employer; the contribution is liable to be paid in respect of such a member and cannot be discontinued.
You can do one thing: ask the member for resignation and withdraw his/her PF amount. Then, upon a fresh appointment with a salary more than Rs. 6500/-, have the member fill out Form 11, stating, "I am not a member of PF amount." However, it amounts to unfair labor practice as you deprive him of benefits pertaining to continuity of service. I hope this satisfies your query.
Regards,
Janki Jani
From India, Delhi
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