What is the criteria to contribute 10% PF and what is the disadvantages (If any). Kindly discuss.
From India, Kolkata
4From India, Kolkata
Hi,
If your organization employs less than 20 employees (along with certain other pre-requisites as per the EPFO rules), the contribution rate from both employee and the employer is limited to 10%. Out of employer's contribution of 12% or 10% (as the situation stands), 8.33% is directed to Employees' Pension Scheme.
From India, Madras
If your organization employs less than 20 employees (along with certain other pre-requisites as per the EPFO rules), the contribution rate from both employee and the employer is limited to 10%. Out of employer's contribution of 12% or 10% (as the situation stands), 8.33% is directed to Employees' Pension Scheme.
From India, Madras
Thanks Lakshminarayanan Ji.
If a very old establishment which had 20 or more employees in 1980, but later the scale of operations were reduced. In 1990 & onwards, it had 15-16 employees (always less than 20), and then further reduced to less than 10 employees, what contribution rate would apply - 10 or 12%.
Besides employee strength < 20, what are the other "pre-requisites" as per EPFO rules? Kindly elaborate.
Regards.
From India, Bikaner
If a very old establishment which had 20 or more employees in 1980, but later the scale of operations were reduced. In 1990 & onwards, it had 15-16 employees (always less than 20), and then further reduced to less than 10 employees, what contribution rate would apply - 10 or 12%.
Besides employee strength < 20, what are the other "pre-requisites" as per EPFO rules? Kindly elaborate.
Regards.
From India, Bikaner
In 1980 the employee strength of the organization was more than 20 and hopefully the organization was paying PF contribution at higher % limit ( probably not 12 % at that time but some other %) . Subsequently the manpower has come down because of scaling down of the business.
With the years to go % of contribution has been changed and if the organization had been contributing at higher limit ( if not paid even once it had been started paying at higher % - it is non compliance ) , now the contribution % will be 12% even if there is one member.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
With the years to go % of contribution has been changed and if the organization had been contributing at higher limit ( if not paid even once it had been started paying at higher % - it is non compliance ) , now the contribution % will be 12% even if there is one member.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Thanks Mr. S K Bandyopadhyay Ji for the reply. Sir, there was a cut-off date notified in 1996 or 1997 ( I think most probly it was 22/9/1997 ),and then, the rate of 10% was applicable to those employing less than 20 persons as on that date. As such it applied to those, who earlier were paying @8.33%. (The rate of 12% was applied to those who earlier were paying 10% instead of 8.33%).
Could you please check and interpret that notification to confirm or disapprove this observation Sir. If strength, notwithstanding the strength at the time of coverage, in 1996 was less than 20, then 10% would apply or not?
Regards.
From India, Bikaner
Could you please check and interpret that notification to confirm or disapprove this observation Sir. If strength, notwithstanding the strength at the time of coverage, in 1996 was less than 20, then 10% would apply or not?
Regards.
From India, Bikaner
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