Dear All,
Need your guidance on the setting up, benefits etc of an Excluded Provident Fund & Employee Provident Fund.
We are a new organization and are opting out for PF need your guidanec as to which one should we opt for n why?
Await your responses.
Warm regards
Nidhi
From India, Gurgaon
3Need your guidance on the setting up, benefits etc of an Excluded Provident Fund & Employee Provident Fund.
We are a new organization and are opting out for PF need your guidanec as to which one should we opt for n why?
Await your responses.
Warm regards
Nidhi
From India, Gurgaon
Hi Nidhi,
For a company to form a trust of its own is a bit tough ans there would lot of quries from the Regional Provident fund office.
But when it comes to the Transfers and Settlements of Employees PF; there can be nothing better than Trust, which is administratively easier and the settling time is the least.
Trust EPFO
Adv for an Employee Easy settlement of cash Safe settlement of
cash
Adv for an Employer Easy Administration Safe & accurate
settlement
Disadv for an Employee Cash may or may not be Follow-up
setteled
Disadv for an Employer - After settlement
status not known
Hope this piece of Info helps to certain extent.
From India, Mumbai
For a company to form a trust of its own is a bit tough ans there would lot of quries from the Regional Provident fund office.
But when it comes to the Transfers and Settlements of Employees PF; there can be nothing better than Trust, which is administratively easier and the settling time is the least.
Trust EPFO
Adv for an Employee Easy settlement of cash Safe settlement of
cash
Adv for an Employer Easy Administration Safe & accurate
settlement
Disadv for an Employee Cash may or may not be Follow-up
setteled
Disadv for an Employer - After settlement
status not known
Hope this piece of Info helps to certain extent.
From India, Mumbai
Hi All
Plz refer to this site for the reference for issues related to PF
http://epfindia.nic.in
From India, Mumbai
Plz refer to this site for the reference for issues related to PF
http://epfindia.nic.in
From India, Mumbai
Hi Friends, Can anyone tell me the difference between Excluded PF and Employee PF. Excluded PF is a new term for me. :? :? :? Regards Amith R.
From India, Bangalore
From India, Bangalore
Hi all, Can anyone tell me whether we can apply para 26A (2) to an Indian employee posted in a country with whom we have a SSA in place and limit his contributions to 12 % of 6500..
From India
From India
Dear Mr.Amith
Excluded PF means PF not coverd due to less no. of employees below 20 nos. or those who are not interested to join in pf who has drawing salary above Rs.6501/- p.m. or above
Employee PF means member in PF who are paying 12% employee share on monthly basic salary to Pf authorities as his monthly contbn.
Regs.: K.Suresh
From India, Hyderabad
Excluded PF means PF not coverd due to less no. of employees below 20 nos. or those who are not interested to join in pf who has drawing salary above Rs.6501/- p.m. or above
Employee PF means member in PF who are paying 12% employee share on monthly basic salary to Pf authorities as his monthly contbn.
Regs.: K.Suresh
From India, Hyderabad
Dear Amith & Suresh,
I think the term used 'excluded PF' is regarding exempted PF trust. If the employer provide better benefits than EPFO, exemption to run employer's own trust may be granted.
As far as the employees are concerned, exempted trust is preferable. Because they will get better benefits as well it will be easy to approach the authority and get sanctioned various requirements.
Regarding employer one benefit is there. Instead of the administration charge of 1.1%, they have to remit only 0.18% towards inspection charge. i.e. Employer can save 1.1 - 0.18 = 0.92%. At the same time there will be a lot of risk factors to run an independant trust. Especially the interest rates in EPF are high than the bank rates. That too monthly compounding. At the same time the investment should be in compliance with the guidelines of EPFO. Hence it is not easy for the exempted trus to meet the interest at par or higher rate with the PF.
Abbas.P.S
From India, Bangalore
I think the term used 'excluded PF' is regarding exempted PF trust. If the employer provide better benefits than EPFO, exemption to run employer's own trust may be granted.
As far as the employees are concerned, exempted trust is preferable. Because they will get better benefits as well it will be easy to approach the authority and get sanctioned various requirements.
Regarding employer one benefit is there. Instead of the administration charge of 1.1%, they have to remit only 0.18% towards inspection charge. i.e. Employer can save 1.1 - 0.18 = 0.92%. At the same time there will be a lot of risk factors to run an independant trust. Especially the interest rates in EPF are high than the bank rates. That too monthly compounding. At the same time the investment should be in compliance with the guidelines of EPFO. Hence it is not easy for the exempted trus to meet the interest at par or higher rate with the PF.
Abbas.P.S
From India, Bangalore
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