Seniors,
This is Barkha.. Am working in a strat up HR department with as employee strength of 40 ..
One of my company's office boy was working since a year through outsource vendor..from Jan'13 he is taken on company's roll.
Now we are starting with the PF for our employee's with effect from April'2012. Hence all past PF deductions will be done in Feb'13 salary.. which every employee has agreed.
Now this office boy has come up with a concern not to deduct PF for him as his Net salary will go down due to his PF contribution. But legally it is mandatory to include all employee's whose basic salary is less than Rs.6500.
Now my question is:
1. if we again put him on outsource basis. .than would it be mandatory for vendor to deduct his PF?
2. Is it possible that by any way we do not include this employee in PF by any case?
Seniors, requesting for you guidance.
From India, Pune
4This is Barkha.. Am working in a strat up HR department with as employee strength of 40 ..
One of my company's office boy was working since a year through outsource vendor..from Jan'13 he is taken on company's roll.
Now we are starting with the PF for our employee's with effect from April'2012. Hence all past PF deductions will be done in Feb'13 salary.. which every employee has agreed.
Now this office boy has come up with a concern not to deduct PF for him as his Net salary will go down due to his PF contribution. But legally it is mandatory to include all employee's whose basic salary is less than Rs.6500.
Now my question is:
1. if we again put him on outsource basis. .than would it be mandatory for vendor to deduct his PF?
2. Is it possible that by any way we do not include this employee in PF by any case?
Seniors, requesting for you guidance.
From India, Pune
Irrespective of the employee agreed or not you have to deduct the pf and esic.
now if he is working through vendor ask the concern show me the deductions any remittance otherwise do not do payment, if not the govt employees will catch the principle employees.
From India, Hyderabad
now if he is working through vendor ask the concern show me the deductions any remittance otherwise do not do payment, if not the govt employees will catch the principle employees.
From India, Hyderabad
Thank You Mr.Ashok for your reply...
But currently he is on Company's payroll since 1st Jan'2013. .Earlier for a year he was on outsource basis...
Now request for your guidance..
If we appoint him on contract on company's roll directly... then am i suppose to deduct his PF?
From India, Pune
But currently he is on Company's payroll since 1st Jan'2013. .Earlier for a year he was on outsource basis...
Now request for your guidance..
If we appoint him on contract on company's roll directly... then am i suppose to deduct his PF?
From India, Pune
Hi, You have deduct and explain what are the benefits of ESIC and PF then definitely he will compromise or agreed on the same
From India, Hyderabad
From India, Hyderabad
Hi Barkha,
Statutory compliance is the responsibility of principal employer,therefore irresespective of employee being on your payrole or under contract PF has to be paid and deducted from the employee's salary as well.It is a welfare measure for the employee.So you will have to cover your employees under PF.
Thanks
Bijay
From India, Vadodara
Statutory compliance is the responsibility of principal employer,therefore irresespective of employee being on your payrole or under contract PF has to be paid and deducted from the employee's salary as well.It is a welfare measure for the employee.So you will have to cover your employees under PF.
Thanks
Bijay
From India, Vadodara
Para 32 of the PF scheme prohibits you from deducting past contribution unless it was as a result of clerical mistake in which case you can deduct it from subsequent wages with permission in writing of Inspector.
VARGHESE MATHEW
09961266966
From India, Thiruvananthapuram
VARGHESE MATHEW
09961266966
From India, Thiruvananthapuram
Of course, PF is a very good saving & social security what every one should have. But still if the employee is not convinced, then you can do one more thing. You can discontinue his service (if he agrees) and take him on your roll by adding just 50 or 100 rs more so that you can avoid the pf deductions in the coming future.
Also the pending PF for the days he worked under the contractor can be deducted from his F&F and can be remitted to the PF office under his account. The employer contribution can be claimed from the contractor or you can deduct from the amount how much ever is due to the contractor from your company.
From India, Bangalore
Also the pending PF for the days he worked under the contractor can be deducted from his F&F and can be remitted to the PF office under his account. The employer contribution can be claimed from the contractor or you can deduct from the amount how much ever is due to the contractor from your company.
From India, Bangalore
If the employee's PF is not deducted in the earlier company, then there is the option to exempt him from PFdeduction. The option is - You can provide him the basic wages above Rs.7000/- So that he will get exemption from his PF deduction.
TEAM PANACEA.
From India, Pune
TEAM PANACEA.
From India, Pune
Better Educate the employee awareness on PF benefits and let him know the difference between onroll and Off roll employment. ksk
From India, Hyderabad
From India, Hyderabad
Sir, i have tried & explained him the benefits of PF... he too understands & accepts it... but he doesn't want his net salary to be affected because of PF... Earlier he used to get Net salary Rs.6500 as only PT was deducted .. not Even PF wil lbe deducted & his new monthly salary will go down respectively...
Sir... In our company we have a structure where we recruit people on Retainer ship basis .For them we do not provide any PF or other benefits... We keep their basis above PF limit.... only the salary is offered to them ... out of which PT is deducted...
Kindly advice... is it legally accepted?
If its is.. . {though this office boy's salary is less}.. i will try to put him in Retainer ship basis...
Looking forward for timely guidance....
From India, Pune
Sir... In our company we have a structure where we recruit people on Retainer ship basis .For them we do not provide any PF or other benefits... We keep their basis above PF limit.... only the salary is offered to them ... out of which PT is deducted...
Kindly advice... is it legally accepted?
If its is.. . {though this office boy's salary is less}.. i will try to put him in Retainer ship basis...
Looking forward for timely guidance....
From India, Pune
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