Dear All, Greetings! Can you please help with the concept of 'open leave'. Hearing a lot about it nowadays. Thanks in advance.
From India, Pune
From India, Pune
An Open leave policy is a policy wherein the employer gives flexibility to the employees on the no. of leaves and when to take them.
In other words, there is no fixed no. on the leaves, no categorization of leaves as Sick/Casual/Earned/Special leaves.
Now Open Leave policy has its own pros and cons.
In my organization, there was an open leave policy structure but it affected us adversely coz -
A particular department took leaves as high as 30-40 days p.a.
A particular department wasn't able to avail leaves so frequently.
People not taking leaves weren't able to distinguish themselves as they weren't recognized.
So we switched to the traditional Max. X leaves p.a. policy.
You need to figure out how the policy would impact your organization depending on the nature of work, industry/sector you fall into and kind of people.
Wish you luck and hope it helped :)
From India, Mumbai
737In other words, there is no fixed no. on the leaves, no categorization of leaves as Sick/Casual/Earned/Special leaves.
Now Open Leave policy has its own pros and cons.
In my organization, there was an open leave policy structure but it affected us adversely coz -
A particular department took leaves as high as 30-40 days p.a.
A particular department wasn't able to avail leaves so frequently.
People not taking leaves weren't able to distinguish themselves as they weren't recognized.
So we switched to the traditional Max. X leaves p.a. policy.
You need to figure out how the policy would impact your organization depending on the nature of work, industry/sector you fall into and kind of people.
Wish you luck and hope it helped :)
From India, Mumbai
Hello Respected Seniors,
I have a question:-
if a employee choose not to deduct PF at the time of joining, but later on after 1 year he decided to choose for the PF deduction. So in that case is it mandatory for employee to pay the employer contribution as well i mean is this s rule or something.
I want to deduct my pf but don't want to pay employer contribution as i want my company to pay half of it.
details are as following
Basic:-9000
HRA:-4000
Please suggest.
Regards
---------------
Yash
From India, Haryana
I have a question:-
if a employee choose not to deduct PF at the time of joining, but later on after 1 year he decided to choose for the PF deduction. So in that case is it mandatory for employee to pay the employer contribution as well i mean is this s rule or something.
I want to deduct my pf but don't want to pay employer contribution as i want my company to pay half of it.
details are as following
Basic:-9000
HRA:-4000
Please suggest.
Regards
---------------
Yash
From India, Haryana
As far as terms are considered....
PF contribution is compulsary on both ends if Basic <= 6,500
Beyond that, many companies contribute PF (with max salary considered as 6,500) but is at discreetion of company.
When Basic > 6,500 then there is no law to force employer to contribute. Employee however can contribute voluntarily if he wishes to.
Seniors please confirm the same.
From India, Mumbai
PF contribution is compulsary on both ends if Basic <= 6,500
Beyond that, many companies contribute PF (with max salary considered as 6,500) but is at discreetion of company.
When Basic > 6,500 then there is no law to force employer to contribute. Employee however can contribute voluntarily if he wishes to.
Seniors please confirm the same.
From India, Mumbai
Thanks ankita for the response.
But if the employee pay the employers part as well then what will be the benefit of it for employee I mean what are the rest policies for this in term of interest rate and will this PF will be same as other employees are getting or different?
Pls clarify.
From India, Haryana
But if the employee pay the employers part as well then what will be the benefit of it for employee I mean what are the rest policies for this in term of interest rate and will this PF will be same as other employees are getting or different?
Pls clarify.
From India, Haryana
Hi Yash,
Pls understand this --
Employee PF has 2 contribution:
1. Employer's End (restricted to 12% of Basic + Da with that being less than 6500. This 12% is bifurcated further as 8.33% going to Pension and remaining 1.67% going to PF)
2. Employee's End (Min 12% to voluntarily 20% of Basic + DA with that being less than or equal to 6500, whole amount goes to PF Fund)
---------------------
Neither can Employer contribute on your behalf nor can you contribute on their behalf.
So what happens when your basic + da > 6500
Employer has 2 ways -
Either he stops contributing his share (since he's not bound to)
Or he out of good will continues his share @ rate of 12% on 6500
Employee has 2 ways -
He too stops contribution and handle PF account accordingly
He continues his contribution as before (similar to Personal PF)
-----------------------------------
So to answer your query - You're not going to shell out 24% of your salary, only 12% (voluntarily i.e. only if you wish to)
So there's no loss. Your deducted amount would go to PF A/c which would get interest and would be there as your retirement fund.
Hope I was able to clear your doubts.
From India, Mumbai
Pls understand this --
Employee PF has 2 contribution:
1. Employer's End (restricted to 12% of Basic + Da with that being less than 6500. This 12% is bifurcated further as 8.33% going to Pension and remaining 1.67% going to PF)
2. Employee's End (Min 12% to voluntarily 20% of Basic + DA with that being less than or equal to 6500, whole amount goes to PF Fund)
---------------------
Neither can Employer contribute on your behalf nor can you contribute on their behalf.
So what happens when your basic + da > 6500
Employer has 2 ways -
Either he stops contributing his share (since he's not bound to)
Or he out of good will continues his share @ rate of 12% on 6500
Employee has 2 ways -
He too stops contribution and handle PF account accordingly
He continues his contribution as before (similar to Personal PF)
-----------------------------------
So to answer your query - You're not going to shell out 24% of your salary, only 12% (voluntarily i.e. only if you wish to)
So there's no loss. Your deducted amount would go to PF A/c which would get interest and would be there as your retirement fund.
Hope I was able to clear your doubts.
From India, Mumbai
I don't think it is compulsary on employee's part as well...
As I stated, as far my knowledge goes even employee has the chance to close contributing and handle PF account accordingly.
PF is not governed by bonds, so employer and employee can stop contributing in this case.
If you still wish to avail benefits of PF, I would recomment rather than opting for EPF go for PPF.
From India, Mumbai
As I stated, as far my knowledge goes even employee has the chance to close contributing and handle PF account accordingly.
PF is not governed by bonds, so employer and employee can stop contributing in this case.
If you still wish to avail benefits of PF, I would recomment rather than opting for EPF go for PPF.
From India, Mumbai
Ok i understood but why you suggest me to open PPF instead of EPF what are the benefits of it. please clarify my last question please..
From India, Haryana
From India, Haryana
PPF is almost equivalent to EPF.
In PPF there is no compulsion payment of 12% of your Basic you can contribute min 500 to maximum of 1 lakh (cieling amount needs validation, pls chk on PF sites)
Apart from that PPF is very much similar to EPF.
Many nationalized bank offer PPF. You can enquire more about it from there too.
Ofcorse there is no other contribution, only you are contributing. No fixed amount. You just have contribute every year, as said, a min of 500 at least.
From India, Mumbai
In PPF there is no compulsion payment of 12% of your Basic you can contribute min 500 to maximum of 1 lakh (cieling amount needs validation, pls chk on PF sites)
Apart from that PPF is very much similar to EPF.
Many nationalized bank offer PPF. You can enquire more about it from there too.
Ofcorse there is no other contribution, only you are contributing. No fixed amount. You just have contribute every year, as said, a min of 500 at least.
From India, Mumbai
EPF differs from PPF in one respect. In EPF, there is a concept of 'Employer's Contribution' (12% of Basic + DA), which does not feature in PPF. From the viewpoint of Income Tax, contribution to either is covered under Section 80C. However, contribution both by the employee & employer to EPF is mandatory if employee's salary (Basic + DA) does not exceed Rs 6500/-.
As regards the issue of 'Open Leave', it is a 'difficult to implement concept' in the Indian environment and is thus not being practiced. However, it will benefit us all if someone (in whose company it is being followed) can guide us about the process deployed for leave approval, record keeping & analysis.
From India, Delhi
As regards the issue of 'Open Leave', it is a 'difficult to implement concept' in the Indian environment and is thus not being practiced. However, it will benefit us all if someone (in whose company it is being followed) can guide us about the process deployed for leave approval, record keeping & analysis.
From India, Delhi
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