Hi,
Recently i got an offer from a start-up company. While going through the offer, i noticed that there was no mention of PF contribution from the company. To this I had a discussion with the company official. During the discussion it was mentioned the company will not be contibuting to PF of the employee.
However, during the discussion they had also mentioned that by Jan 2012 they are planning to start the business and for this they are planning to recruit 50 odd employees.
Now as per PF act, a compay with employee strenght of 20 has to be registered at PF offce and has to contribute to Employees PF.
Am really surprised what to do? In which scenarios company are get away without paying PF? is there any rule where a company is registered in TN or Pondicherry can get away with the PF act?
Please help me understand the PF rules.
Best Regards,
From India, Hyderabad
Recently i got an offer from a start-up company. While going through the offer, i noticed that there was no mention of PF contribution from the company. To this I had a discussion with the company official. During the discussion it was mentioned the company will not be contibuting to PF of the employee.
However, during the discussion they had also mentioned that by Jan 2012 they are planning to start the business and for this they are planning to recruit 50 odd employees.
Now as per PF act, a compay with employee strenght of 20 has to be registered at PF offce and has to contribute to Employees PF.
Am really surprised what to do? In which scenarios company are get away without paying PF? is there any rule where a company is registered in TN or Pondicherry can get away with the PF act?
Please help me understand the PF rules.
Best Regards,
From India, Hyderabad
A company will be covered by EPF only when it starts business. However, if the company intends to appoint 20 or more employees, there should be a provision for EPF. Therefore, the company's defend saying that the company will not have PF is not right. Either they wish to hide it from PF authorities or will work with less than 20 employees. In the former case, I will suggest that the company will not be professionally good to work with.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
there may be a chance that they donot go beyond 20employees, but saying 50 target as yo attract the needed employees at this time. as Madhu said if they recruit morethan 20 infuture and hide from pf dept, then it will noy be legal and no professionalised.
From United States, Ogden
From United States, Ogden
same thing what i too saw in my company as i am newly recruited over here.These people are not paying any PF for employees.and we people are not having any pay slip or salary slip.
And thing they said to me when i asked is that they are deducting some amount as membership fees and that is sufficient as deductions.And that is not refundable to the employees while leaving the company
is it OK acc to the law.
From India, Hyderabad
And thing they said to me when i asked is that they are deducting some amount as membership fees and that is sufficient as deductions.And that is not refundable to the employees while leaving the company
is it OK acc to the law.
From India, Hyderabad
But what if... all the employees have their salary more Rs. 6500???
then would the company be right on its part for not contributing PF??
check what about your basic salary ? and again have a discussion with them
From India, Mumbai
then would the company be right on its part for not contributing PF??
check what about your basic salary ? and again have a discussion with them
From India, Mumbai
If your company had engaged 20 employees at any point of time, your establishment will come under EPF from that date on which your employee strength exceeded 19 or became 20. That includes casuals also. Once your establishment is covered yours will continue to be covered even if you employ less than 20.
Now, if you have 20 or more employees then the establishment will be covered even if all of them are getting PF qualifying salary (Basic + DA) more than Rs 6500. In such circumstances you will have to send NIL returns every month and if any employee is appointed on a salary of Rs 6500 or less, you should start contributing in respect of him. Needless to say that casual engagement will also be considered for payment of contributions.
Sowmya's case is subject to enforcement. Your establishment is practicing an unfair labour policy. The employer is under a legal obligation to give pay slips to employees and he can not deduct any amount by way of 'membership fees' and that too non refundable. It is not justifiable and the company may be doing it after getting due support from the appropriate government authorities. That requires to be addressed before the competent authorities like EPF Enforcement Officers, ESI Social Security Officers and Labour Officers.
Regards,
Madhu.T.K
From India, Kannur
Now, if you have 20 or more employees then the establishment will be covered even if all of them are getting PF qualifying salary (Basic + DA) more than Rs 6500. In such circumstances you will have to send NIL returns every month and if any employee is appointed on a salary of Rs 6500 or less, you should start contributing in respect of him. Needless to say that casual engagement will also be considered for payment of contributions.
Sowmya's case is subject to enforcement. Your establishment is practicing an unfair labour policy. The employer is under a legal obligation to give pay slips to employees and he can not deduct any amount by way of 'membership fees' and that too non refundable. It is not justifiable and the company may be doing it after getting due support from the appropriate government authorities. That requires to be addressed before the competent authorities like EPF Enforcement Officers, ESI Social Security Officers and Labour Officers.
Regards,
Madhu.T.K
From India, Kannur
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.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf