Hi,
If an employee is paying his PF contribution for 2 years and after that he is joining another company where there is no PF contribution, will his account remain active? If so, for how many years will it stay active? If he is not working in any company after that, what will be the status of his PF account?
Another query: if an IT company has more than 20 employees and doesn't have any PF scheme, is it necessary to implement PF or is just paying the TDS and PT enough? If PF needs to be implemented in an IT firm, are there any terms and conditions such as a minimum period of 6 months or 1 year?
Hope Citehr friends will help me with this. Thanks in advance. :)
Cheers,
Swati
From India, Bangalore
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6If an employee is paying his PF contribution for 2 years and after that he is joining another company where there is no PF contribution, will his account remain active? If so, for how many years will it stay active? If he is not working in any company after that, what will be the status of his PF account?
Another query: if an IT company has more than 20 employees and doesn't have any PF scheme, is it necessary to implement PF or is just paying the TDS and PT enough? If PF needs to be implemented in an IT firm, are there any terms and conditions such as a minimum period of 6 months or 1 year?
Hope Citehr friends will help me with this. Thanks in advance. :)
Cheers,
Swati
From India, Bangalore
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Hi Swati,
The PF scheme is mandatory for any industry with a workforce of more than 20 employees, and it has recently been amended to 10 employees.
Once an employee becomes a member of the PF scheme, it doesn't make any difference whether the gap is 2 years or 20 years; their PF amount is safe and can be withdrawn at any time. The account will remain active until the amount is withdrawn.
Thank you.
From India, Delhi
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The PF scheme is mandatory for any industry with a workforce of more than 20 employees, and it has recently been amended to 10 employees.
Once an employee becomes a member of the PF scheme, it doesn't make any difference whether the gap is 2 years or 20 years; their PF amount is safe and can be withdrawn at any time. The account will remain active until the amount is withdrawn.
Thank you.
From India, Delhi
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Hello Swati,
I would like to answer your 2nd query. If any company employs 20 or more employees and has not implemented the PF scheme, it is mandatory for them, as per the act, to deduct PF from those employees who are withdrawing a salary below Rs. 6500/- per month. For other employees, it can only deduct Professional Tax and TDS. Such a company can introduce the PF scheme at any point in time.
I hope I have answered your query.
From India, Pune
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I would like to answer your 2nd query. If any company employs 20 or more employees and has not implemented the PF scheme, it is mandatory for them, as per the act, to deduct PF from those employees who are withdrawing a salary below Rs. 6500/- per month. For other employees, it can only deduct Professional Tax and TDS. Such a company can introduce the PF scheme at any point in time.
I hope I have answered your query.
From India, Pune
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Dear Swati,
Of course, Rajeev has replied to your query very nicely. However, the strength for applicability of PF is still 20, and it was a proposal for 10, but no notification has been issued yet. Regarding the time gap in between, it is not an issue. This will be counted as a noncontributory period.
Regards,
J. S. Malik
From India, Delhi
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Of course, Rajeev has replied to your query very nicely. However, the strength for applicability of PF is still 20, and it was a proposal for 10, but no notification has been issued yet. Regarding the time gap in between, it is not an issue. This will be counted as a noncontributory period.
Regards,
J. S. Malik
From India, Delhi
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