Dear All,
Employees whose salary is more than 6500, and they are not the member of Provident Fund, Now company is going to make all the employees member even those,that's salary is more than 6500/-
but all employees are not interested to be a contributer.
Can company make them PF Member Forcefully?
With Regards
Bhnau Pratap Singh
From India, Pune
3Employees whose salary is more than 6500, and they are not the member of Provident Fund, Now company is going to make all the employees member even those,that's salary is more than 6500/-
but all employees are not interested to be a contributer.
Can company make them PF Member Forcefully?
With Regards
Bhnau Pratap Singh
From India, Pune
As per the PF Act, Maximum salary Limit is Rs.6500/- which is compulsory and above that its upto the employee for the deduction of PF.
From India, Ahmadabad
From India, Ahmadabad
As above stated PF is mandatory for those whose salary doesnot exceed Rs 6500. But if the company decides that all including those drawing more than Rs 6500 shall be brought under the EPF and if many employees are not willing to accept it then it is a dispute within the organisation in which the EPF is not a party or the EPF Act has nothing to do with it. The EPFO will not disallow any employee from joining the scheme but at the same time it will not allow any one to go out of the scheme.
If the employer is ready to contribute the employer's contribution on such higher salary (more than 6500) why do not the employees agree to it? After all the scheme is a good investment scheme with Income Tax benefits also. Moreover, the ceiling of salary Rs 6500 can be revised by the government at any time to bring more employees under the scheme. It may be done even retrospectively also.
Regards,
Madhu.T.K
From India, Kannur
If the employer is ready to contribute the employer's contribution on such higher salary (more than 6500) why do not the employees agree to it? After all the scheme is a good investment scheme with Income Tax benefits also. Moreover, the ceiling of salary Rs 6500 can be revised by the government at any time to bring more employees under the scheme. It may be done even retrospectively also.
Regards,
Madhu.T.K
From India, Kannur
But is there any legal boundation on employer side to follow any rule like, any undertaking is necessary from the employee before making him member,
May employee can rais any legal issue if PF is deducted?
From India, Pune
May employee can rais any legal issue if PF is deducted?
From India, Pune
i too wanna ask something ............ IF the salary is more than rs 6500 and employer is not willing to contribute towards PF, will it involve any legal complications?
From India, Hyderabad
From India, Hyderabad
Dear Sir,
Please confirm if employees ( whose salary is more that 6500) accept this and also fill in the form 2, the individual contributions to be made will be as per the individual salary drawn by them or will be on the fixed amount of 6500.
Swati
From India, Bangalore
Please confirm if employees ( whose salary is more that 6500) accept this and also fill in the form 2, the individual contributions to be made will be as per the individual salary drawn by them or will be on the fixed amount of 6500.
Swati
From India, Bangalore
The undertaking is very much necessary once your management decides to recover the employees contribution for whom the salary limit is more than Rs.6500 and were your employees for quiet some time and got their many monthly salaries without any PF deduction since their salary was more than Rs.6500/-.
Even otherwise once the employer is ready to contibute Rs.780/- which is an additional income, I don't know why the employees should object to it.
Regards,
S.Kumarasubramanian
From India, Madras
Even otherwise once the employer is ready to contibute Rs.780/- which is an additional income, I don't know why the employees should object to it.
Regards,
S.Kumarasubramanian
From India, Madras
If it is more than Rs.6500/- then there is no need for any employer contribution for that employee provided that at the time of joining itself his wages are fixed more than 6500 and no deduction was made from him as employee contribution from day one of his joining.
On the other hand if it was recovered from him then the employer also legally bound to contribute the same amount. Only thing no employer ever legally need to pay more than Rs.780 as employer contribution.
It is so simple. Once covered for ever covered.
Regards,
S.Kumarasubramanian
From India, Madras
On the other hand if it was recovered from him then the employer also legally bound to contribute the same amount. Only thing no employer ever legally need to pay more than Rs.780 as employer contribution.
It is so simple. Once covered for ever covered.
Regards,
S.Kumarasubramanian
From India, Madras
Dear Mr. Bhanu Pratap Singh,
As my friends stated, PF is mandatory for all the employees whose salary is less than 6500/- p.month. Frankly, I dont understand the reason why the employees are not willing to contribute to the PF whose salaries are more than 6500/-. One reason I can think of is that a reduction in the net pay after contributing to the PF. However, Employer can overcome this by marginally increasing the gross salaries thereby protecting their net pay even after PF contribution. on the other side PF contribution will result in the increase in CTC of the employees and protection to their famalies since all the employees covered under PF are eligible for pension also and in case of any unnatural event, family gets the pension for their survival. You can convince the management to protect the net pay of employees, explain these benefits to them and bring all the employees under PF.
Ramasastry
AM-HR
From India, Hyderabad
As my friends stated, PF is mandatory for all the employees whose salary is less than 6500/- p.month. Frankly, I dont understand the reason why the employees are not willing to contribute to the PF whose salaries are more than 6500/-. One reason I can think of is that a reduction in the net pay after contributing to the PF. However, Employer can overcome this by marginally increasing the gross salaries thereby protecting their net pay even after PF contribution. on the other side PF contribution will result in the increase in CTC of the employees and protection to their famalies since all the employees covered under PF are eligible for pension also and in case of any unnatural event, family gets the pension for their survival. You can convince the management to protect the net pay of employees, explain these benefits to them and bring all the employees under PF.
Ramasastry
AM-HR
From India, Hyderabad
There are number of employees who are even ready to contribute a higher percentage (higher than 12%) as voluntary contribution. In the case of voluntary contribution, of course, the employer need not contribute such higher percentage but his contribution will be restricted to statutory contribution, 12% + administrative and other charges as the case may be.
If the employer wishes that all shall be covered by the scheme it is certainly for the benefit of employees only. There are employers who deduct and contribute PF from the gross (Basic + DA) salary though he is not suppose to contribute for the amount of salary exceeding Rs 6500. In some cases it will be like, all will be covered but the PF will be deducted and contributed on the salary of Rs 6500 only. In fact this is the amount which qualifies for contribution towards Employees Pension Fund.
In both the cases employer will be incurring an additional expenditure. The gravity of such expenditure increases when we find that an employee once covered by EPF will continue to be covered irrespective of any hike in salary and the employer can not withdraw himself from it once his financial condition goes negative.
Normally, there will be an agreement between the employees and the employer in this regard.
Regards,
Madhu.T.K
From India, Kannur
If the employer wishes that all shall be covered by the scheme it is certainly for the benefit of employees only. There are employers who deduct and contribute PF from the gross (Basic + DA) salary though he is not suppose to contribute for the amount of salary exceeding Rs 6500. In some cases it will be like, all will be covered but the PF will be deducted and contributed on the salary of Rs 6500 only. In fact this is the amount which qualifies for contribution towards Employees Pension Fund.
In both the cases employer will be incurring an additional expenditure. The gravity of such expenditure increases when we find that an employee once covered by EPF will continue to be covered irrespective of any hike in salary and the employer can not withdraw himself from it once his financial condition goes negative.
Normally, there will be an agreement between the employees and the employer in this regard.
Regards,
Madhu.T.K
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf