Dear all,
Hi
My Query is One of our contractor is not paying PF and says that consolidated pay of his labour is more than 6500/- per month . whereby he says that he is going to show the same as Basic + DA. And he asks me is there any rule which states that he need to compulsory pay pf even if the basic+da is more than 6500.
Kindly suggest and give me your valuable suggestion
Waiting for your valuable replies
Thanks & Regards,
Siva
From India, Hyderabad
Hi
My Query is One of our contractor is not paying PF and says that consolidated pay of his labour is more than 6500/- per month . whereby he says that he is going to show the same as Basic + DA. And he asks me is there any rule which states that he need to compulsory pay pf even if the basic+da is more than 6500.
Kindly suggest and give me your valuable suggestion
Waiting for your valuable replies
Thanks & Regards,
Siva
From India, Hyderabad
Dear all,
Hi
My Query is One of our contractor is not paying PF and says that consolidated pay of his labour is more than 6500/- per month . whereby he says that he is going to show the same as Basic + DA. And he asks me is there any rule which states that he need to compulsory pay pf even if the basic+da is more than 6500.
Kindly suggest and give me your valuable suggestion
Waiting for your valuable replies
Thanks & Regards,
Siva
more at http://citehr.com#ixzz15X9Ip2Qt
From India, Hyderabad
Hi
My Query is One of our contractor is not paying PF and says that consolidated pay of his labour is more than 6500/- per month . whereby he says that he is going to show the same as Basic + DA. And he asks me is there any rule which states that he need to compulsory pay pf even if the basic+da is more than 6500.
Kindly suggest and give me your valuable suggestion
Waiting for your valuable replies
Thanks & Regards,
Siva
more at http://citehr.com#ixzz15X9Ip2Qt
From India, Hyderabad
Dear Siva
As per my understanding, it is not only 6,500 thresh hold limit which restricts the contractor not to pay the PF contribution. There are other conditions aswell that should be met and also the Employer/Contractor should submit a letter to the PF department stating that all his employees are more than the thresh hold limit of Basic + DA of 6,500 and hence will not be covered for PF contribution. Irrespective of the fact of thresh hold limit, if the company has exceeded 20 employees, they should register for PF.
As regards to the other two conditions, they are as below:
1. Employee should not have been a member of PF any time during his previous employement
2. Employee should have withdrawn all his previous PF accumulation if any.
Just check again with the PF department if you are unsure about the above.
Thanks
From India, Faridabad
9As per my understanding, it is not only 6,500 thresh hold limit which restricts the contractor not to pay the PF contribution. There are other conditions aswell that should be met and also the Employer/Contractor should submit a letter to the PF department stating that all his employees are more than the thresh hold limit of Basic + DA of 6,500 and hence will not be covered for PF contribution. Irrespective of the fact of thresh hold limit, if the company has exceeded 20 employees, they should register for PF.
As regards to the other two conditions, they are as below:
1. Employee should not have been a member of PF any time during his previous employement
2. Employee should have withdrawn all his previous PF accumulation if any.
Just check again with the PF department if you are unsure about the above.
Thanks
From India, Faridabad
Dear Sir,
Thanks for your immediate reply
Here the problem is Contrctor will have so many contract labour and he is supplying labout to three plants also where he is remitting PF & ESI. But this is a new plant and started production in oct' 2010. Whereby he is trying to escape from pF payment. He had paid ESi but trying to escape from PF payments stating even the contract labour are not interested in PF. So, kindly advise me as to what to do?
Thanks
Siva
From India, Hyderabad
Thanks for your immediate reply
Here the problem is Contrctor will have so many contract labour and he is supplying labout to three plants also where he is remitting PF & ESI. But this is a new plant and started production in oct' 2010. Whereby he is trying to escape from pF payment. He had paid ESi but trying to escape from PF payments stating even the contract labour are not interested in PF. So, kindly advise me as to what to do?
Thanks
Siva
From India, Hyderabad
Dear Siva
Firstly, please request the contrctor to provide PF registration number. If the employment of his labourers are under the same registration, he should collect a Form 11 which is a declaration given by employee stating that his salary is more than 6,500 and hence he does not want to contribute to the PF and also states that he does not hold any previous PF number in any organisation.
This Form 11 has to be submitted with the PF department. Then only you can take the stand that they are not covered under PF and hence there is no need for PF remittance. Else, you will have an exposure to the PF compliance since you are the Principal employer for the contract labourers.
Thanks
From India, Faridabad
Firstly, please request the contrctor to provide PF registration number. If the employment of his labourers are under the same registration, he should collect a Form 11 which is a declaration given by employee stating that his salary is more than 6,500 and hence he does not want to contribute to the PF and also states that he does not hold any previous PF number in any organisation.
This Form 11 has to be submitted with the PF department. Then only you can take the stand that they are not covered under PF and hence there is no need for PF remittance. Else, you will have an exposure to the PF compliance since you are the Principal employer for the contract labourers.
Thanks
From India, Faridabad
Thank you very much sir
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Dear Siva
Firstly, please request the contrctor to provide PF registration number. If the employment of his labourers are under the same registration, he should collect a Form 11 which is a declaration given by employee stating that his salary is more than 6,500 and hence he does not want to contribute to the PF and also states that he does not hold any previous PF number in any organisation.
This Form 11 has to be submitted with the PF department. Then only you can take the stand that they are not covered under PF and hence there is no need for PF remittance. Else, you will have an exposure to the PF compliance since you are the Principal employer for the contract labourers.
Thanks
__________________
Showri
+91-99001-03820
more at https://www.citehr.com/296469-contra...#ixzz15XS5mc5y
From India, Hyderabad
--------------------------------------------------------------------------------
Dear Siva
Firstly, please request the contrctor to provide PF registration number. If the employment of his labourers are under the same registration, he should collect a Form 11 which is a declaration given by employee stating that his salary is more than 6,500 and hence he does not want to contribute to the PF and also states that he does not hold any previous PF number in any organisation.
This Form 11 has to be submitted with the PF department. Then only you can take the stand that they are not covered under PF and hence there is no need for PF remittance. Else, you will have an exposure to the PF compliance since you are the Principal employer for the contract labourers.
Thanks
__________________
Showri
+91-99001-03820
more at https://www.citehr.com/296469-contra...#ixzz15XS5mc5y
From India, Hyderabad
Dear Sir, If all the contract labour are newly joined (Freshers) then what should be done Kindly advise Regards, Vijaya
From India, Hyderabad
From India, Hyderabad
if the contract labours newely joined then same form 11 will workablw and there he has to mark the option tht he was not member of pf earlier and then the same form will be submitted to pf office if there salary more than 6500.
From India, Angul
From India, Angul
If an employee not being covered earlier under PF Act draws a salary of more than 6500 including Basic + DA , he is not amenable under the PF Act and the employer/contractor is not legally bound to contribute to PF. However this will differs when an employee was earlier covered under PF Act and by virtue of salary increase he crosses the limit of Rs. 6500 he is bound to be covered under the PF Act irrespective of his present salary.
with regards
sanagapalli
From India, Hyderabad
with regards
sanagapalli
From India, Hyderabad
Dear Mr Siva and others
Please note:
1. You have indicated that the it is consolidated salary of Rs.6500/-
2. PF is payable not on consolidated salary but on basic+DA
3. If Basic + DA is more than Rs.6500, there is an option not to pay PF and follow the procedure of filling form 11
4. If your company is paying PF to the contractor as per your agreement, then invariably he has to remit it to PF and cover his employees; otherwise, all this amount will go to his profit pocket !!
5. If the basic + DA is less han Rs.6500 immediately ask him to cover all his employees under PF and pay the contribution otherwise, your company is liable to pay
6. Also as other respondents say, if he had covered his employees earlier and not doing now, it is illegal and he has to cover them
Please take suitable action based on the above
Regards
K.Ramachandra
Bangalore
Please note:
1. You have indicated that the it is consolidated salary of Rs.6500/-
2. PF is payable not on consolidated salary but on basic+DA
3. If Basic + DA is more than Rs.6500, there is an option not to pay PF and follow the procedure of filling form 11
4. If your company is paying PF to the contractor as per your agreement, then invariably he has to remit it to PF and cover his employees; otherwise, all this amount will go to his profit pocket !!
5. If the basic + DA is less han Rs.6500 immediately ask him to cover all his employees under PF and pay the contribution otherwise, your company is liable to pay
6. Also as other respondents say, if he had covered his employees earlier and not doing now, it is illegal and he has to cover them
Please take suitable action based on the above
Regards
K.Ramachandra
Bangalore
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STATUTORY COMPLIANCES CHECKLIST ON VARIOUS LABOUR LAWS.xls