Dear All,
Please help me with the following queries regarding PF Payments
1. If an employee's last working day is 20th August 2009, should we pay the PF amount before sept 15th?
2. If an employee's salary is on hold due to absconding & he is been terminated, should his PF amount for the days he worked to be remitted?For example, if an employee is absconding from 10th Aug 2009, and we terminated him, do we have to remit the PF amount for the 10 days he worked.
3. If the answer to the 1st question is yes, then do we have to update it in the Form 10. In case the total number of employees according to Form 12A in July 2009 is 47 and 3 employees are joining on 2nd Aug 2009, the total becomes 50. We have one resignation on Aug 20th. So in Form 12A, the total employees would be 49. However if we had to pay the contribution of the resigned employee, then the total number of employees for which the contribution is paid becomes 50 (including the resigned employee). there would be a mismatch between the Form 12A & Challan in the number of employees. Is this acceptable or the numbers should match.
4. We are paying the PF on the ceiling amount i.e rs. 6500. However some employees want us to deduct more amount from them. What could be the maximum % that we can deduct from them and by doing this where as employers we should be losing money apart from the admin charges we should be paying.
Im really really sorry if i had confused you. So am I :confused::sad:.
Please help me with this.
Thanks
Darryl
From India, Madras
Please help me with the following queries regarding PF Payments
1. If an employee's last working day is 20th August 2009, should we pay the PF amount before sept 15th?
2. If an employee's salary is on hold due to absconding & he is been terminated, should his PF amount for the days he worked to be remitted?For example, if an employee is absconding from 10th Aug 2009, and we terminated him, do we have to remit the PF amount for the 10 days he worked.
3. If the answer to the 1st question is yes, then do we have to update it in the Form 10. In case the total number of employees according to Form 12A in July 2009 is 47 and 3 employees are joining on 2nd Aug 2009, the total becomes 50. We have one resignation on Aug 20th. So in Form 12A, the total employees would be 49. However if we had to pay the contribution of the resigned employee, then the total number of employees for which the contribution is paid becomes 50 (including the resigned employee). there would be a mismatch between the Form 12A & Challan in the number of employees. Is this acceptable or the numbers should match.
4. We are paying the PF on the ceiling amount i.e rs. 6500. However some employees want us to deduct more amount from them. What could be the maximum % that we can deduct from them and by doing this where as employers we should be losing money apart from the admin charges we should be paying.
Im really really sorry if i had confused you. So am I :confused::sad:.
Please help me with this.
Thanks
Darryl
From India, Madras
Dear Darryl,
Answer of 1 & 2 Question is already given by mallik sir. So i am coming directly to 4 question (I am confused for 3 question so i will not put my leg in that)
If employee want to increase there share in PF they can do it. There is no maximum limit if they want 100% they can have it. Take written application from employee for increasing there contribution in pf clearly mentioning how much they want to contribute. company limit is fixed i.e. 6500 so employer will not lose any extra money. Admin charge will also be same.
Sr. pls correct me if i am wrong.
For more information: White Eagle: PF Query
From India, Hyderabad
22Answer of 1 & 2 Question is already given by mallik sir. So i am coming directly to 4 question (I am confused for 3 question so i will not put my leg in that)
If employee want to increase there share in PF they can do it. There is no maximum limit if they want 100% they can have it. Take written application from employee for increasing there contribution in pf clearly mentioning how much they want to contribute. company limit is fixed i.e. 6500 so employer will not lose any extra money. Admin charge will also be same.
Sr. pls correct me if i am wrong.
For more information: White Eagle: PF Query
From India, Hyderabad
dear mr white eagle
there is little correction as per payment of wages act total deduction can not be more than 50% from your salary including everything.
however act is not clear about how much should be volunterily contribution towards PF but PF authorities accept 12% staututorily
contribution+12% voluntorily contribution of individual and they donot accpt inbetween formulae.
regards
js malik
From India, Delhi
there is little correction as per payment of wages act total deduction can not be more than 50% from your salary including everything.
however act is not clear about how much should be volunterily contribution towards PF but PF authorities accept 12% staututorily
contribution+12% voluntorily contribution of individual and they donot accpt inbetween formulae.
regards
js malik
From India, Delhi
Thank you very much for helping.
I agree with mallik sir that employer is no one to stop the payment of salary for the period of work an employee works even though he is absconding. On the otherhand is it not right for the employer to hold the salary and release it with the Full and Final Settlement. Is there any timeline for the company to settle F&F. Because it takes atleast 30 - 45 days for us to finish with the process.
Could you please guide me on the laws pertaining to it.
Im really sorry for confusing with that 3rd question. In short could you explain what should be filled in Form 12A, 5 and 10 which should be submitted to PF office before 25th along with the challan.
Thanks again for your support.
From India, Madras
I agree with mallik sir that employer is no one to stop the payment of salary for the period of work an employee works even though he is absconding. On the otherhand is it not right for the employer to hold the salary and release it with the Full and Final Settlement. Is there any timeline for the company to settle F&F. Because it takes atleast 30 - 45 days for us to finish with the process.
Could you please guide me on the laws pertaining to it.
Im really sorry for confusing with that 3rd question. In short could you explain what should be filled in Form 12A, 5 and 10 which should be submitted to PF office before 25th along with the challan.
Thanks again for your support.
From India, Madras
Dear Friend,
Pl let it clear that you are in process of filing return / Form 12A for July-09, so don't consider the cases of new joinings and resignations,if any in the current month.
As we are paying pf contribution vide challan for previous month i.e. July-09 then there is also no issue of mismacth of number of employees as per challan & Form 12A.
For example , we are filing July -09 Form 12 A in the month of Aug-09 then -
No. of subscribers as per last month (Jun-09 ) 47
No. of subscribers as (Vide Form5) (Jul-09) 03
No. of subscribers left service (Vide Form 10) (Jun-09) 00
Total Number of subscribers (July-09) 50
Hope this can help you.
Regards,
From India, Pune
Pl let it clear that you are in process of filing return / Form 12A for July-09, so don't consider the cases of new joinings and resignations,if any in the current month.
As we are paying pf contribution vide challan for previous month i.e. July-09 then there is also no issue of mismacth of number of employees as per challan & Form 12A.
For example , we are filing July -09 Form 12 A in the month of Aug-09 then -
No. of subscribers as per last month (Jun-09 ) 47
No. of subscribers as (Vide Form5) (Jul-09) 03
No. of subscribers left service (Vide Form 10) (Jun-09) 00
Total Number of subscribers (July-09) 50
Hope this can help you.
Regards,
From India, Pune
1) What is meant by Absconding ? , what are the conditions of absconding ? Pls .let me know about clarification of absconding Regards, Arun Aher HR Assistant.
From India, Patna
From India, Patna
Hi Darryl
Any employee on roll during the month even if it is for one day u have to remit his/ her PF alongwith company's contribution irrespective of the fact whether he was terminated or absconding.
Since u are remitting Aug contribution in Sept & submitting the employee details for the month of Aug in Sept how come mismatch appears ?
If any employee wants to contribute additional amount over and above the statutory limit of 12% such voluntary contributions by the employee is permissible under the statute. However employer will not contribute more than 12 % which is the statutory limit for the employer. Ther is no such limit for voluntay contribution by the employee. However he can mx contribte 50% of his basic as VPF.
Kalyan Mitra
From India, Calcutta
Any employee on roll during the month even if it is for one day u have to remit his/ her PF alongwith company's contribution irrespective of the fact whether he was terminated or absconding.
Since u are remitting Aug contribution in Sept & submitting the employee details for the month of Aug in Sept how come mismatch appears ?
If any employee wants to contribute additional amount over and above the statutory limit of 12% such voluntary contributions by the employee is permissible under the statute. However employer will not contribute more than 12 % which is the statutory limit for the employer. Ther is no such limit for voluntay contribution by the employee. However he can mx contribte 50% of his basic as VPF.
Kalyan Mitra
From India, Calcutta
Hi Kalyan,
Thanks. Incase the employee leaves the org on 8th Aug we would be remitting the contribution in Sept and submit the returns in sept. So in Form 10 do we have to mention the employees who left in August or who left in July.
As per the post by salve it is July.
From India, Madras
Thanks. Incase the employee leaves the org on 8th Aug we would be remitting the contribution in Sept and submit the returns in sept. So in Form 10 do we have to mention the employees who left in August or who left in July.
As per the post by salve it is July.
From India, Madras
can you please give me information on what is form 12a about and 5 and form 10 what are the other forms related to pf with a clear picture
From India, Hyderabad
From India, Hyderabad
Hi Darryl,
The rule is if an employee's last working day is 31st July he was on roll upto 31st July and he has not left the Company in July since his resignation was effective from 1st Aug. He should be treated as left the Co in August & his name should appear in Sept Form 10 showing his date of leaving as 1.8.2009. But an employee who has worked upto 7th August and resignation was effective from 8th August he has actually left the Co in August itself and his name should appear in Sept Form 10 showing his date of leaving as 8.8.2009.
Kalyan Mitra
From India, Calcutta
The rule is if an employee's last working day is 31st July he was on roll upto 31st July and he has not left the Company in July since his resignation was effective from 1st Aug. He should be treated as left the Co in August & his name should appear in Sept Form 10 showing his date of leaving as 1.8.2009. But an employee who has worked upto 7th August and resignation was effective from 8th August he has actually left the Co in August itself and his name should appear in Sept Form 10 showing his date of leaving as 8.8.2009.
Kalyan Mitra
From India, Calcutta
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