No Tags Found!


nilesh nayak
i am working in small company, there is around 150 employee working. so my HR officer always telling to us which is pf is compulsory for each and every worker, but i dont want to pf scheme i want all my salary on hand so it is possible??? can i take all my salary amount on cash in hand? is pf is compulsory for employee?
From India, Ahmadabad
P Manoz Kumar
Dear Mr. Nilesh,
In your pay, if your basic is more than 6500/-, then u can fill form 11 and get exemption from pf ,but once it covered it's not possible to get exemption until u r in service with that organisation.Other than that it is mandatory to be under pf. But it good to cover under pf.
Regards,
P Manoz Kumar
B 4 Excellence

From India, Hyderabad
saiconsult
1899

First ensure whether your establishment is covered by the P.F Act.if so it is mandatory to cover the employees. B.Saikumar Mumbai
From India, Mumbai
RR Mohanty
5

At the outset, I have a question for Nilesh: 'why you don't want to be covered under the PF scheme?'

You must know that this scheme has a number of benefits for you and need not be mentioned here.

It applies to the whole India except Jammu & Kashmir and is applicable to:

a. Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. (List of Industries/Establishments)

b. Employing 20 or more persons .

c. Cinema Theaters employing 5 or more persons.

The Act does not apply to the co-operative societies employing less than 50 persons and working without the aid of power.

The establishment to which this Act applies shall continue to be governed by this Act , even if the number of employees falls below 20 at a later date.

If any of the establishment is not satisfying the above conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment .

As Manoj has rightly pointed out there is no way one can opt out once he has been enrolled under PF unless you leave the organisation and joins another organisation with a salary more than Rs 6500 or which is not covered under the act.

My suggestion is Enjoy the benefits of PF Scheme.

From India, Haora
Anonymous
1

Tnx sir for clarifying my doubts. i have more doubt with respect to Maternity benefit act. what is the minimum no days, requird to avail maternity benefits. Is it 160 DAYS OR 80 DAYS. regards
From India, Hyderabad
RR Mohanty
5

An woman employee must have worked in an establishment of the employer from whom she claims maternity benefit, for a period of not less 80 days in the twelve months immediately preceding the date of here expected delivery to be be entitled to maternity benefit.
For the purpose of calculating the days on which a woman has actually worked in the establishment, the days for which she has been laid off or was on holidays declared under any law to be holidays with wages during the period of 12 months immediately preceding the day of her delivery, the actual day of her delivery and any period immediately following that day.

From India, Haora
BSSV
201

Usually If your Gross salary is above 15000pm PF applies, and is it is below 15000pm ESI is applicable, and they are mandatory.
Pf is Calculated on basic......
6500 is for limited and unlimited PF calculation........

From India, Bangalore
RR Mohanty
5

BSSV, it will be better if you cite the circular/ amendment and explain a bit more. I think you are mixing it up with ESI Act.
From India, Haora
BSSV
201

Oh yeah. You are right Dear Mohanty. I do not know how to thank you for correcting me..... I was doing with medical insurance and ESI, and I have done a gross mistake here!!!! I really Thank you for making me realise, thanks a lot...... This is what happens when we deal with multiples thoughts at a time!! Hearty thanks again........

Hi Nilesh,

The PF provisions is not loud about the fixed 'amount' for eligibility. The company shall have atleast 20 employees. And If your PF contribution is above 6500/-pm you may become a member of other schemes.

There are two types of PF - Ltd PF & Unltd PF

Ltd PF = 6500 LIMIT, 6500 * 12 % = 780 PM

Unlimited PF = Whatever Basic * 12%

That means, in case if limited PF, what ever may be your basic but maximum limit is 6500/-pm is considered, if you basic 4500/- then 4500/- will be considered, which ever is lower.....

Well, for those who have a basic salary of up to Rs 6,500, contributing to the EPF is mandatory. Contributions are voluntary for those whose basic salary exceeds Rs 6,500. But it may be advised to contribute to the pf fund to avail the benefits, like Safety of returns assured by the government loan availability, interest rate, one of the good retirement plans,timely withdrawal (you withdrawal can be made within 3 months after submitting the withdrawal for, but transfer consumes a lot of time...), afterall its a social security fund. And in case, if the employee (Salary of above 6500/-) can be a member if his employer binds himself to pay the dues under the Act in respect of him and his employee, and the employee also agrees for the deduction from his pay. once he binds himself it become mandatory for the employee.

well,So in your case, if you have agreed while joining in you agreement then your employer may withdraw the contribution from your salary.

There is another provision too, if your salary of 6500/- while joining no doubt Pf is mandatory, but if it increases over 6500/- then your contribution may be seized to 6500/- in case you do not want to contribute. However is the agreement is silent on that issue then you may withdraw from contributing to PF after the increase....



And in case of ESI, it applicable if the Gross Salary is Less than 15000 PM.

Minimum number of employees = 10

Employee contribution = 1.75% on Gross Salary

Employer = 4.75% on Gross Salary

I believe I have made it clear......

Have a nice time...........

From India, Bangalore
moovendrapandi
1

How could you get out from PF if this act is made as social security purpose?

If you are not calculating anybody in society then only it is possible. Nobody can oppose against act, it is compulsory to every India.

Pls go through below points to understand PF.

EMPLOYEES' PROVIDENT FUND SCHEME 1952

Employee Definition:

"Employee" as defined in Section 2(f) of the Act means any person who is employee for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer and includes any person employed by or through a contractor in or in connection with the work of the establishment.

Membership:

All the employees (including casual, part time, Daily wage contract etc.) other then an excluded employee are required to be enrolled as members of the fund the day, the Act comes into force in such establishment.

Basic Wages:

"Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include

The cash value of any food concession;

Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment.

Any present made by the employer.

Excluded Employee:

"Exclude Employee" as defined under pare 2(f) of the Employees' Provident Fund Scheme means an employee who having been a member of the fund has withdraw the full amount of accumulation in the fund on retirement from service after attaining the age of 55 years; Or An employee, whose pay exceeds Rs. Five Thousand per month at the time, otherwise entitled to become a member of the fund.

Explanation:

'Pay' includes basic wages with dearness allowance, retaining allowance, (if any) and cash value of food concessions admissible thereon.

Employee Provident Fund Scheme:

Employees' Provident Fund Scheme takes care of following needs of the members:

(i) Retirement (ii) Medical Care (iii) Housing

(iv) Family obligation (v) Education of Children

(vi) Financing of Insurance Polices

How the Employees' Provident Fund Scheme works:

As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in the case of following establishments:

Any covered establishment with less then 20 employees, for establishments cover prior to 22.9.97.

Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction,

Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and

Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund Scheme by the employee and employer will be as under with effect from 22.9.1997.

Employees' Provident Fund Interest rate:

The rate of interest is fixed by the Central Government in consultation with the Central Board of trustees, Employees' Provident Fund every year during March/April. The interest is credited to the members account on monthly running balance with effect from the last day in each year. The rate of interest for the year 1998-99 has been notified as 12%. The rate of interest for 99-2000 w.e.f. 1.7.'99 was 11% on monthly balances. 2000-2001 CBT recommended 10.25% to be notified by the Government.

Benefits:

A) A member of the provident fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 year. Full amount in provident fund can also be withdraw by the member under the following circumstance:

A member who has not attained the age of 55 year at the time of termination of service.

A member is retired on account of permanent and total disablement due to bodily or mental infirmity.

On migration from India for permanent settlement abroad or for taking employment abroad.

In the case of mass or individual retrenchment.

B) In the case of the following contingencies, the payment of provident fund be made after complementing a continuous period of not less than two months immediately preceding the date on which the application for withdrawal is made by the member:

Where employees of close establishment are transferred to other establishment, which is not covered under the Act:

Where a member is discharged and is given retrenchment compensation under the Industrial Dispute Act, 1947.

Withdrawal before retirement:

A member can withdraw upto 90% of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuation whichever is later. Claim application in form 19 may be submitted to the concerned Provident Fund Office.

Accumulations of a deceased member:

Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office.

Transfer of Provident Fund account:

Transfer of Provident Fund account from one region to other, from Exempted Provident Fund Trust to Unexampled Fund in a region and vice-versa can be done as per Scheme. Transfer Application in form 13 may be submitted to the concerned Provident Fund Office.

Nomination:

The member of Provident Fund shall make a declaration in Form 2, a nomination conferring the right to receive the amount that may stand to the credit in the fund in the event of death. The member may furnish the particulars concerning himself and his family. These particulars furnished by the member of Provident Fund in Form 2 will help the Organization in the building up the data bank for use in event of death of the member.

Annual Statement of account:

As soon as possible and after the close of each period of currency of contribution, annual statements of accounts will de sent to each member through of the factory or other establishment where the member was last employed. The statement of accounts in the fund will show the opening balance at the beginning of the period, amount contribution during the year, the total amount of interest credited at the end of the period or any withdrawal during the period and the closing balance at the end of the period. Member should satisfy themselves as to the correctness f the annual statement of accounts and any error should be brought through employer to the notice of the correctness Provident Fund Office within 6 months of the receipt of the statement.

Regards,

Ashwin.

From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.