I am about to start a business in civil engineering construction. However the labors are not constant, they may or may not continue on the next day (Practically). In this case how can we pay PF for such labor?
From India, Chennai
1From India, Chennai
Dear , If you consider their basic more 6500, then, they excluded from PF, but, need to think about the up coming bill for raising the PF ceiling from 6500 to 15000/-. Regards, Tushar Swar
From India, Mumbai
From India, Mumbai
Dear Tushar ji, Do you mean to say that the PF Act is not applicable to the employees who are drawing basic more than Rs. 6500/- (Rs.15000/-)?
From India, Mumbai
From India, Mumbai
As per the amendment given very long back, even the person worked for one day, we have to pay pf, but the pf act will applicable only the number of employees should be 20 or more. Bhaskar Head - HR
From India, Bangalore
From India, Bangalore
Dear All,
Thanks Eniya.
In fact I was also looking for some advice in this matter - Request your valid opinion on deducting PF for the daily laborers in case of total strength more than 20.
It is difficult to keep track of employees' accounts as they keep changing on each day. How to handle this??
Regards
Marymol
From India, Chennai
Thanks Eniya.
In fact I was also looking for some advice in this matter - Request your valid opinion on deducting PF for the daily laborers in case of total strength more than 20.
It is difficult to keep track of employees' accounts as they keep changing on each day. How to handle this??
Regards
Marymol
From India, Chennai
Dear friend,
First of all,you will be required to take a Registration from PF Department of your locality only when the total no of employees including contract labors are employed 20 or more in any month.
Secondly, you are to consider your salary/wage pattern of all employees including contract employees. If the Basic & DA of employees is up-to Rs 6,500/ per month other than allowances, you have to pay PF contribution to those employees who have worked even for one day. Needless to state that you are to calculate on day's wages payable/to be paid on which you have to deduct @ 12% (only on basic & da) from the wages of the concerned employee /contract labor as PF contribution.Employer contribution will have to be payable @13.61% on one day's wages. So Employer & Employee contributions together @ 25.61% will be have to be deposited by 15th of the following month.
Sibabrata Majumdar
Management Consultant- Legal & HR
Mb:9830023706
From India, Calcutta
First of all,you will be required to take a Registration from PF Department of your locality only when the total no of employees including contract labors are employed 20 or more in any month.
Secondly, you are to consider your salary/wage pattern of all employees including contract employees. If the Basic & DA of employees is up-to Rs 6,500/ per month other than allowances, you have to pay PF contribution to those employees who have worked even for one day. Needless to state that you are to calculate on day's wages payable/to be paid on which you have to deduct @ 12% (only on basic & da) from the wages of the concerned employee /contract labor as PF contribution.Employer contribution will have to be payable @13.61% on one day's wages. So Employer & Employee contributions together @ 25.61% will be have to be deposited by 15th of the following month.
Sibabrata Majumdar
Management Consultant- Legal & HR
Mb:9830023706
From India, Calcutta
Dear All,
I am completely agree with the comment of Sibabrata Ji.
Apart from this, I would like to further add that, if you will not deduct the contribution from the employee's salary and timely remit it, then it may be possible that at the time of EPF Inspection, the department can calculate it as a defaulter payment and also impose interest on the same. And, also note that, at that time only you will have to pay the entire amount.
So, be particular on this.
From India, Delhi
I am completely agree with the comment of Sibabrata Ji.
Apart from this, I would like to further add that, if you will not deduct the contribution from the employee's salary and timely remit it, then it may be possible that at the time of EPF Inspection, the department can calculate it as a defaulter payment and also impose interest on the same. And, also note that, at that time only you will have to pay the entire amount.
So, be particular on this.
From India, Delhi
Dear All,
Can any body tell me that who is responsible for looking after the fire Extinguisher in the factory. Like Reffeling them , checking the expiry, Conducting the fire drill, Making records related to fire drill. Is it the work of HR Officer or safety officer.
Thanks
W. Regards
Khan
Can any body tell me that who is responsible for looking after the fire Extinguisher in the factory. Like Reffeling them , checking the expiry, Conducting the fire drill, Making records related to fire drill. Is it the work of HR Officer or safety officer.
Thanks
W. Regards
Khan
Dear, These are the job description of safety officer or admin can also perform the same. This KRA is not related to HR.
From India, Bangalore
From India, Bangalore
Dear Eniya410,
Whether,
You are in a business in civil engineering construction; or
You are in any other activity;
And,
You are in schedule I Industry of the Act; and
The Act is applicable to your establishment,
Eventhough,
Your labours are not constant;
Your labours may not continue on next day with you;
Your labours may be migrant in nature;
The labours may be hired in multi tier system i.e. engaged through contract / sub contract / sub sub contract / sub sub contract......;
There is no direct or even indirect control of you on the labours; and
It may be practically impossible for you to make the compliance under the Act in respect of such persons; and
There may be uncertainty as on date whether the labours will get their contribution back or not,
YOU ARE LIABLE FOR PF DEDUCTION.
All this points are well discussed in the matter of Builders' Association of India, Mumbai HC Nagpur Bench.
Funda of Rs. 6500/- is being misinterpreted by most of us and therefore, the question is asked by me to one of the learned friends Mr. Tushar Swar.
Members should discuss on this post.
From India, Mumbai
Whether,
You are in a business in civil engineering construction; or
You are in any other activity;
And,
You are in schedule I Industry of the Act; and
The Act is applicable to your establishment,
Eventhough,
Your labours are not constant;
Your labours may not continue on next day with you;
Your labours may be migrant in nature;
The labours may be hired in multi tier system i.e. engaged through contract / sub contract / sub sub contract / sub sub contract......;
There is no direct or even indirect control of you on the labours; and
It may be practically impossible for you to make the compliance under the Act in respect of such persons; and
There may be uncertainty as on date whether the labours will get their contribution back or not,
YOU ARE LIABLE FOR PF DEDUCTION.
All this points are well discussed in the matter of Builders' Association of India, Mumbai HC Nagpur Bench.
Funda of Rs. 6500/- is being misinterpreted by most of us and therefore, the question is asked by me to one of the learned friends Mr. Tushar Swar.
Members should discuss on this post.
From India, Mumbai
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.
AP_CONTRACT LABOUR WAGES -GAZETTE_final. pdf
REVISED-A.P CONTRACT LABOUR WAGES- UPTO 31-03-2020.xls