Hi, If we recruit a new employee at a salary of Rs.10,000/= p.m and all other employees are drawing less than Rs.6500/= and are covered under PF, will this new employee too be covered in PF?
From United States, Englewood
From United States, Englewood
When all the employees are covered under pf the new employee also has to be covered under pf.But while ur calculating the pf of a employee havin a salary of more than 10,000 u need to caluclate the pf on 6500 only as it is the maximum slab.
From India, Hyderabad
From India, Hyderabad
It is not mandatory that a new employee whose salary right at the time of joining exceeds Rs 6500 should become a member of EPF. However, the existing members will continue to be members even when their salary increases beyond Rs 6500.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
No, under ESI Act, an employee ceases to be covered when his salary crosses Rs 10000. But such out of coverage will take place only when the contribution period ends. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
Dear Madhu,
The maximum limit in ESI is now 10,000/- instead of Rs.6500 or 7500 therefore dont mix between the ESI & PF
my dear friend under PF first you need to make the breakups of the CTC then the Basic Salary will be subject to PF not on full amount of the salary
and second if anyone of the employee is not interested to deduct his PF then you can take the decelaration on the paper and he will not be inducted under the PF ACT
You are free to ask anything about the PF
Thank you
Best Regards
Brajesh Sharma
Contact 9971054160
From India, New Delhi
The maximum limit in ESI is now 10,000/- instead of Rs.6500 or 7500 therefore dont mix between the ESI & PF
my dear friend under PF first you need to make the breakups of the CTC then the Basic Salary will be subject to PF not on full amount of the salary
and second if anyone of the employee is not interested to deduct his PF then you can take the decelaration on the paper and he will not be inducted under the PF ACT
You are free to ask anything about the PF
Thank you
Best Regards
Brajesh Sharma
Contact 9971054160
From India, New Delhi
Hi All,
Well detailed..
Very true said by Mr. Brijesh, as PF attracts basic & DA only so after the break-up of salary only one shall be able to calculate the PF contribution. If employee's basic salary is more than 6500/- per month then on his self declaration one may be exempted or not covered under the PF.
In case of ESIC, it attracts the gross salary paid at the end of the month. Maximum ceiling is rupees 10,000/- gross salary. Once covered employee shall be a member covered under ESIC for the same period even after salary exceeding rupees 10,000/- per month.
Moreover, in such case the ESIC contribution shall be made at the increased salary rate.
Regards,
Amit Seth.
From India, Ahmadabad
Well detailed..
Very true said by Mr. Brijesh, as PF attracts basic & DA only so after the break-up of salary only one shall be able to calculate the PF contribution. If employee's basic salary is more than 6500/- per month then on his self declaration one may be exempted or not covered under the PF.
In case of ESIC, it attracts the gross salary paid at the end of the month. Maximum ceiling is rupees 10,000/- gross salary. Once covered employee shall be a member covered under ESIC for the same period even after salary exceeding rupees 10,000/- per month.
Moreover, in such case the ESIC contribution shall be made at the increased salary rate.
Regards,
Amit Seth.
From India, Ahmadabad
Dear, If the new emp. has a basic salary more than Rs. 6500 . than it is not mandatory to be a PF member. But you have to take joint consent from the employee not to be a member of PF. Thanks
From India, Solon
From India, Solon
Hi,
As per my experience,all good companies have a provision for PF and if all other employees are
covered under PF then even the new employee is generally suppossed to be covered under PF, also the companies generally dont change their policies for a single employee. Yet, there can be exeptions.
The PF is calucated on the basic salary. The 'basic' slab is nearly or exactly taken as half of gross salary. So, if an employee's salary is 10,000, then if his basic will be 4,000 so, PF will be 12% of Basic, i.e 480 Rs.
With every increment the salary slabs get changed and the HR must refer to the PF officers regarding the same.
Thanks
Gunjan Sarojwal
Sr. HR exe & Trainer
From India, New Delhi
As per my experience,all good companies have a provision for PF and if all other employees are
covered under PF then even the new employee is generally suppossed to be covered under PF, also the companies generally dont change their policies for a single employee. Yet, there can be exeptions.
The PF is calucated on the basic salary. The 'basic' slab is nearly or exactly taken as half of gross salary. So, if an employee's salary is 10,000, then if his basic will be 4,000 so, PF will be 12% of Basic, i.e 480 Rs.
With every increment the salary slabs get changed and the HR must refer to the PF officers regarding the same.
Thanks
Gunjan Sarojwal
Sr. HR exe & Trainer
From India, New Delhi
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