In my Company we are not deducting pf for employees whose basic+da is above 6500. Is it ok or any problem from PF authorities. Kindly reply Anuradha
From India, Bangalore
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2From India, Bangalore
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Anuradha,
It is correct as per the PF Act of 1952, but as for social security, every company pays the PF to all the employees in the company who earn above 6500 as well. Why is your company making payments like this? You might have other benefits that the company provides, I suppose? Please check.
Regards,
Srihari
From India, Hyderabad
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It is correct as per the PF Act of 1952, but as for social security, every company pays the PF to all the employees in the company who earn above 6500 as well. Why is your company making payments like this? You might have other benefits that the company provides, I suppose? Please check.
Regards,
Srihari
From India, Hyderabad
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Dear Anuradha, U r liable to deduct PF up to 6500 if u donot want 2 deduct make it 6501. and fill form no 11. Daljeet Singh
From India
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From India
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Hi Anuradha,
If the total number of employees in your organization is equal to or more than 20, then it is a must to deduct PF from the month when the staff count turns to 20. This may be the best procedure to be followed:
1. Gross Salary minus HRA/Other allowance if exceeding 6500; then cap at 12% of 6500 would be PF.
2. If the point one is below 6500, then 12% of the Gross Salary minus HRA/Other allowance would be the PF.
Hope this explains.
From India
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If the total number of employees in your organization is equal to or more than 20, then it is a must to deduct PF from the month when the staff count turns to 20. This may be the best procedure to be followed:
1. Gross Salary minus HRA/Other allowance if exceeding 6500; then cap at 12% of 6500 would be PF.
2. If the point one is below 6500, then 12% of the Gross Salary minus HRA/Other allowance would be the PF.
Hope this explains.
From India
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Also, I would like to add that these PF norms may vary from one state to another state (not sure), so better check with any PF consultant in your location.
From India
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From India
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Dear Anuradha,
If basic salary + DA is less than or equal to 6500, employees are liable for PF. If you want to exempt your employees from PF liability, make the basic salary more than 6500/- and get the PF Form No. 11 declaration signed by employees. It should state that they were not a member of the PF & Pension scheme in their last organization. It is mandatory to give PF to employees who were availing this facility in their last organization.
Regards,
Reena
From India, Delhi
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If basic salary + DA is less than or equal to 6500, employees are liable for PF. If you want to exempt your employees from PF liability, make the basic salary more than 6500/- and get the PF Form No. 11 declaration signed by employees. It should state that they were not a member of the PF & Pension scheme in their last organization. It is mandatory to give PF to employees who were availing this facility in their last organization.
Regards,
Reena
From India, Delhi
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PF forms will not change from state to state. It is the same throughout India.
If new employees with a salary above 6500/- were PF members and did not withdraw it on superannuation or migration from India, they shall be covered under EPF.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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If new employees with a salary above 6500/- were PF members and did not withdraw it on superannuation or migration from India, they shall be covered under EPF.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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Dear Anuradha,
In my opinion, your company should check employees' background to see whether they were a member of EPF or not in their previous establishment. Once a person becomes a member of EPF, we cannot exempt them from EPF. If the employee is a fresher in the job, we can exempt them from EPF by ensuring that Basic + DA > 6500.
Please correct me if I'm wrong.
Thank you.
From India, Delhi
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In my opinion, your company should check employees' background to see whether they were a member of EPF or not in their previous establishment. Once a person becomes a member of EPF, we cannot exempt them from EPF. If the employee is a fresher in the job, we can exempt them from EPF by ensuring that Basic + DA > 6500.
Please correct me if I'm wrong.
Thank you.
From India, Delhi
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Dear Anuradha,
According to my opinion, your company should check employees' backgrounds to determine whether they were members of EPF in their previous establishments. Once a person becomes a member of EPF, we cannot exempt them from EPF contributions. If the employee is a fresher in the job, we can exempt them from EPF by ensuring Basic + DA > 6500.
Ajay Dwivedi
9911669520
From India, Delhi
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According to my opinion, your company should check employees' backgrounds to determine whether they were members of EPF in their previous establishments. Once a person becomes a member of EPF, we cannot exempt them from EPF contributions. If the employee is a fresher in the job, we can exempt them from EPF by ensuring Basic + DA > 6500.
Ajay Dwivedi
9911669520
From India, Delhi
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf