Hello Seniors,
I am working as HR in Pvt Company and would like to know about the PF rules. I am in process of hiring new candidate for managerial position, and he was getting voluntary PF benefit in his previous organisation. Is it necessary to give this benefit to him when he join our organisation, if no, then what are the formalities to be completed?
Regards
Shruti
From India, Gurgaon
1I am working as HR in Pvt Company and would like to know about the PF rules. I am in process of hiring new candidate for managerial position, and he was getting voluntary PF benefit in his previous organisation. Is it necessary to give this benefit to him when he join our organisation, if no, then what are the formalities to be completed?
Regards
Shruti
From India, Gurgaon
Decade old companies follow the gross salary basis like Govt Organizations. They show employee contribution and they treat employers contribution as liability which looks like voluntary PF.
But newly started companies, for eg: IT and ITES sector works on ctc basis, where employee and employer contribution also calculated as CTC salary, where they feel that it is not a liability, it is a cost spent on that employee.
So, you have to work on the salary structure, where you should include employer contribution extra. Otherwise, his take home salary will become less, which will end up at a quarrel after getting his 1st month salary.
From India, Chennai
But newly started companies, for eg: IT and ITES sector works on ctc basis, where employee and employer contribution also calculated as CTC salary, where they feel that it is not a liability, it is a cost spent on that employee.
So, you have to work on the salary structure, where you should include employer contribution extra. Otherwise, his take home salary will become less, which will end up at a quarrel after getting his 1st month salary.
From India, Chennai
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 WORKING-MASTER SUMMARY.xls