Dear Seniors,
Very Good Morning to all,
I have a query , In couple of months there will be 20 employees in my co, basic salary for all is more than 6,500. At Present except 2 or 3 none employees wants to go for PF deduction as they have their own investment plans.
My query is this that for two three employees only we don't want to take pf registration code.
Is there any procedure to this ?
Please guide me,
Thanks a lot in advance !
From India, Mumbai
13Very Good Morning to all,
I have a query , In couple of months there will be 20 employees in my co, basic salary for all is more than 6,500. At Present except 2 or 3 none employees wants to go for PF deduction as they have their own investment plans.
My query is this that for two three employees only we don't want to take pf registration code.
Is there any procedure to this ?
Please guide me,
Thanks a lot in advance !
From India, Mumbai
Dear Ravi,
I should really appreciate for the tedious question. Here is the is the big picture.
The employees Provident Fund and Misc act, 1956 Clearly states in Sec 1(3-A) and Sec 5 Clearly says that once you have 20 or more employees you are directly entitled in the act. It doesn't mean about the basic or what so ever. So your company comes under the EPF act automatically once you have 20 employees.
For the employees who don't want to use the EPF and EPS scheme shall write a letter to the employer that he is not ready to use this scheme. This way you don't have to spend extra costs.
But pl don't manipulate law. If any problem look also the Sec 14 and 14-A of the act.
From India, Bangalore
I should really appreciate for the tedious question. Here is the is the big picture.
The employees Provident Fund and Misc act, 1956 Clearly states in Sec 1(3-A) and Sec 5 Clearly says that once you have 20 or more employees you are directly entitled in the act. It doesn't mean about the basic or what so ever. So your company comes under the EPF act automatically once you have 20 employees.
For the employees who don't want to use the EPF and EPS scheme shall write a letter to the employer that he is not ready to use this scheme. This way you don't have to spend extra costs.
But pl don't manipulate law. If any problem look also the Sec 14 and 14-A of the act.
From India, Bangalore
Thanks Yashwant for the reply,
So I believe once 20 employees are there we have to take PF registration code for the co. and those employee
who dont want PF deduction to be done should give a declaration for the same.
Please reply if I understood it rightly.
From India, Mumbai
So I believe once 20 employees are there we have to take PF registration code for the co. and those employee
who dont want PF deduction to be done should give a declaration for the same.
Please reply if I understood it rightly.
From India, Mumbai
The question is not tedious but simple. You can not contract out PF. It is a statutory obligation on each of the employer and the Employee. Law applies by its own force when the Co has engaged more than 19 person on any working day. No option. The liability of the Employer start and he has to contribute for both the shares.
In the event the Ees are drawing more than 6500/- and never contributed PF they may not be covered. The employer has to take a declaration from each & every employee about his previous PF membership in F-11 as per para 34 of the PF Scheme. I totally reject the opinion given by Mr Yashwant.
Mindwell in the event you have failed to deduct the PF from the salary of the Employee from the current month you are not authorised to deduct it as arrear of PF later. Furthermore the delayed remittance of PF is not a authorised deduction under Income Tax also. You may think that it is a inevitable evil for the Employer and You can not escape it. Therefore the Coverage or registration by taking a code No is a must.
From India, Jaipur
In the event the Ees are drawing more than 6500/- and never contributed PF they may not be covered. The employer has to take a declaration from each & every employee about his previous PF membership in F-11 as per para 34 of the PF Scheme. I totally reject the opinion given by Mr Yashwant.
Mindwell in the event you have failed to deduct the PF from the salary of the Employee from the current month you are not authorised to deduct it as arrear of PF later. Furthermore the delayed remittance of PF is not a authorised deduction under Income Tax also. You may think that it is a inevitable evil for the Employer and You can not escape it. Therefore the Coverage or registration by taking a code No is a must.
From India, Jaipur
Daer yashwant You are simply not as per law. Your advise is on a wrong notion and belief.
From India, Jaipur
From India, Jaipur
Dear ravita
I understand that you have to register under PF once you have 20 employees. Even if none of them want PF, you will need to file blank returns with a fee of rs. 7
As for payment of PF for 2 people, it is a pain.
If you can convince them not opt out and get the form 11 signed for both of them, then you can avoid the trouble. Probably you can convince them to create PPF accounts instead
From India, Mumbai
I understand that you have to register under PF once you have 20 employees. Even if none of them want PF, you will need to file blank returns with a fee of rs. 7
As for payment of PF for 2 people, it is a pain.
If you can convince them not opt out and get the form 11 signed for both of them, then you can avoid the trouble. Probably you can convince them to create PPF accounts instead
From India, Mumbai
Hi Ravi,
Going in for PF formalities only for a few employees is quite a tedious job. However being in the HR field we ought to do things for the employees within the frame-lines of the statutory laws. It would be really great to have your company registered with the PF Office, and if the employees do not want this deduction getting Form 11 filled is advisable.
This would keep all employees satisfied, whether or not they want the PF Deductions and would probably attract even more employees.
Maybe through Word of mouth publicity atleast the employees could spread good words about the company in terms of statutory compliance being followed.
Employee satisfaction does matter alot in the growth of the organization. If the existing employees' issues are addressed well, it will help assuring the new employees that they are in the right company.
From India, Pune
Going in for PF formalities only for a few employees is quite a tedious job. However being in the HR field we ought to do things for the employees within the frame-lines of the statutory laws. It would be really great to have your company registered with the PF Office, and if the employees do not want this deduction getting Form 11 filled is advisable.
This would keep all employees satisfied, whether or not they want the PF Deductions and would probably attract even more employees.
Maybe through Word of mouth publicity atleast the employees could spread good words about the company in terms of statutory compliance being followed.
Employee satisfaction does matter alot in the growth of the organization. If the existing employees' issues are addressed well, it will help assuring the new employees that they are in the right company.
From India, Pune
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