Hi all,
I had earlier worked for more than 4.5 yrs for a Central PSU which has more than 600 employees and has been making profits. It has its own PF trust. 10% of my basic pay was deducted during my tenure and my employer was also contributing the same amount. (My basic pay was more than 7500 at my joining and my last basic was 15000 at the time of resignation)I have recently resigned and joined an other company.
On my resignation, my old company has settled my PF after giving away a cheque to me which consisted of only my contribution along with interest on the same. When I asked about the employer's contribution, they had shown me a rule which was formed by my old company that says "employer's contribution shall be given only if an employee works for a minimum period of 5 years in the company".
I will be greatful if you can clarify the following points:
1. Is there any such provision for PSU s(Profit making) to form their own rules when the PF is managed by their own PF trust by superceding the Govt rules?
2. Is there any rule as per the act which permits the employer to stipulate any time frame for giving their contribution also?
3. Can the trust itself settle the PF amount without employee's consent (given that Employees always have an option to transfer the fund to new employer) as I heard that PF is settled only by EPFO.
In short, Can I demand for employer's contribution also despite the fact that their internal rule does not allow the same before 5 years of service in the same company
Pl help me out. A lot of money is involved.
Regards,
RPV
From India, Bangalore
I had earlier worked for more than 4.5 yrs for a Central PSU which has more than 600 employees and has been making profits. It has its own PF trust. 10% of my basic pay was deducted during my tenure and my employer was also contributing the same amount. (My basic pay was more than 7500 at my joining and my last basic was 15000 at the time of resignation)I have recently resigned and joined an other company.
On my resignation, my old company has settled my PF after giving away a cheque to me which consisted of only my contribution along with interest on the same. When I asked about the employer's contribution, they had shown me a rule which was formed by my old company that says "employer's contribution shall be given only if an employee works for a minimum period of 5 years in the company".
I will be greatful if you can clarify the following points:
1. Is there any such provision for PSU s(Profit making) to form their own rules when the PF is managed by their own PF trust by superceding the Govt rules?
2. Is there any rule as per the act which permits the employer to stipulate any time frame for giving their contribution also?
3. Can the trust itself settle the PF amount without employee's consent (given that Employees always have an option to transfer the fund to new employer) as I heard that PF is settled only by EPFO.
In short, Can I demand for employer's contribution also despite the fact that their internal rule does not allow the same before 5 years of service in the same company
Pl help me out. A lot of money is involved.
Regards,
RPV
From India, Bangalore
Dear RPV,
:( How did u take the P.F cheque without verfication of your actual amount. Every company has to follow the EPF Act rules and regulations. If u want to know the above rules just u go through the EPF website epfindia.nic.in, so that you can get the valuable information through the website.
I hope u solve your problem very soon.
:D
Bai
Venkat
From India, Hyderabad
5:( How did u take the P.F cheque without verfication of your actual amount. Every company has to follow the EPF Act rules and regulations. If u want to know the above rules just u go through the EPF website epfindia.nic.in, so that you can get the valuable information through the website.
I hope u solve your problem very soon.
:D
Bai
Venkat
From India, Hyderabad
Hi Venkat,
Thanks for the response. I haven't collected the cheque yet. I will accept the same only when I get clarification of my doubts.
I have gone through the EPFO web site. But I couldn't get the required information there.
I am not aware of any other source of information where I can get the info specific to Public Sector Undertakings. Please advise me if there is any.
Thanks & Regards,
RPV
From India, Bangalore
Thanks for the response. I haven't collected the cheque yet. I will accept the same only when I get clarification of my doubts.
I have gone through the EPFO web site. But I couldn't get the required information there.
I am not aware of any other source of information where I can get the info specific to Public Sector Undertakings. Please advise me if there is any.
Thanks & Regards,
RPV
From India, Bangalore
Dear RPV,
I am not that much sure whether you will get your sum amount or not, but According to section 16 of the ACT, any central/state Government establishments having its own scheme of provident fund or pension is exempted from EPF Act 1952.
Regards,
Amit Seth.
From India, Ahmadabad
I am not that much sure whether you will get your sum amount or not, but According to section 16 of the ACT, any central/state Government establishments having its own scheme of provident fund or pension is exempted from EPF Act 1952.
Regards,
Amit Seth.
From India, Ahmadabad
Hi venket is this PF % will differ company to company or a fixed %. I do know this is a basic question that HR should not ask for. Still I have doubts. rgds kantha
From India, Madras
From India, Madras
Dear Kantha,
There is a difference of PF% from company to company subject to the mentioned in the EPF Act. You can find out after going through the following :
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:
Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.
Hope u got the answer for your question. :D
Bai
Venkat
From India, Hyderabad
There is a difference of PF% from company to company subject to the mentioned in the EPF Act. You can find out after going through the following :
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:
Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.
Hope u got the answer for your question. :D
Bai
Venkat
From India, Hyderabad
Hi Venkat,
I have gone through the EPFO website as suggested by you and I confirm that my company was not in any of the categories that were mentioned in Section16.
It had more than 600 employees, it was not a sick unit, It had not accumalated any losses during any financial year.
Can you pl advise me whether I can demand my employer's contribution?
Waiting for ur reply
Thanks & Regards,
RPV
From India, Bangalore
I have gone through the EPFO website as suggested by you and I confirm that my company was not in any of the categories that were mentioned in Section16.
It had more than 600 employees, it was not a sick unit, It had not accumalated any losses during any financial year.
Can you pl advise me whether I can demand my employer's contribution?
Waiting for ur reply
Thanks & Regards,
RPV
From India, Bangalore
Dear All,
Getting the Employer's share is the matter of right as per EPF Act. Earlier the employees were getting part of employer's share if they left the job before completion of specified period of service. Now a decision has been taken on 30th Dec, 1989 by the Board of Trustees under the Chairmanship of the Labour Minister to the effect that the employees will be entitled to the full payment of employers' contribution alongwith interest in addition to their own share.
An employee who service is more than 6 months is eligible to get the full share of his employers' contribution also.
The formation PF trust is allowed to give higher benefit and speedy process of settlement to the employees, if any of the provisions of the EPF Act is contravened, then the Trust is liable to dissolved & and face penal charges by the EPFO.
Rgds,
Suresh Ramalingam
Consultant - Legal & Compliance
From India, Mumbai
Getting the Employer's share is the matter of right as per EPF Act. Earlier the employees were getting part of employer's share if they left the job before completion of specified period of service. Now a decision has been taken on 30th Dec, 1989 by the Board of Trustees under the Chairmanship of the Labour Minister to the effect that the employees will be entitled to the full payment of employers' contribution alongwith interest in addition to their own share.
An employee who service is more than 6 months is eligible to get the full share of his employers' contribution also.
The formation PF trust is allowed to give higher benefit and speedy process of settlement to the employees, if any of the provisions of the EPF Act is contravened, then the Trust is liable to dissolved & and face penal charges by the EPFO.
Rgds,
Suresh Ramalingam
Consultant - Legal & Compliance
From India, Mumbai
Hi Mr Suresh,
Thank you very much for the response. You have given me some hope of getting my employer's share. It would be great if you can kindly give me the relevant section in the EPF Act where the rule was changed to that effect. I would like to take up the matter with my previous employer.
Thanks a lot
Regards,
RPV
From India, Bangalore
Thank you very much for the response. You have given me some hope of getting my employer's share. It would be great if you can kindly give me the relevant section in the EPF Act where the rule was changed to that effect. I would like to take up the matter with my previous employer.
Thanks a lot
Regards,
RPV
From India, Bangalore
Hi all,
I was again denied the employer contribution. They stuck to the same rule of 5 years min service. Can anybody help me in getting my employer contribution???
I understood from sources that the PF Act 1925 allows the employer to deny payment of his contribution if an employee doesn't serve for minimum of 5 years. Is it right???
How can I know that a company falls under the purview of PF Act 1925 or PF ACt 1952????
Regards,
RPV
From India, Bangalore
I was again denied the employer contribution. They stuck to the same rule of 5 years min service. Can anybody help me in getting my employer contribution???
I understood from sources that the PF Act 1925 allows the employer to deny payment of his contribution if an employee doesn't serve for minimum of 5 years. Is it right???
How can I know that a company falls under the purview of PF Act 1925 or PF ACt 1952????
Regards,
RPV
From India, Bangalore
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.
Employer-PF-res trict to wages of Rs 6500.pdf