Dear Seniors, From when we have to implement the PF deduction on other allowance from employee salary.
From India, Mumbai
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2From India, Mumbai
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You can start paying PF on gross salary (less HRA) from now itself. There is no need to wait for any more notification from EPFO because this is only a clarification of what is said in the law. If you do not start paying it on actual salary, you will have to pay it with interest and damages. It is understood that lawyers have started canvassing the employers saying that this verdict applies only to the establishments involved in the case and there is scope for a 7A enquiry and therefore no need to pay it now. This is a marketing tactic because once you are asked to show the records by the EPF officials, they will only compute the contribution as per the guidelines of the Supreme Court, and at that time neither your consultant nor your advocate can defend saying that the court order does not apply to you.
When the definition of Basic Pay itself is the whole emoluments that an employee gets while on work or on "leave," how can you say that salary means that basic salary that you have fixed? If that is the case, when you take leave, you should be paid only the rate as per basic pay, but you are paid salary for that leave day considering the whole salary.
https://madhu-t-k.blogspot.com/2019/...ary-and_6.html
From India, Kannur
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When the definition of Basic Pay itself is the whole emoluments that an employee gets while on work or on "leave," how can you say that salary means that basic salary that you have fixed? If that is the case, when you take leave, you should be paid only the rate as per basic pay, but you are paid salary for that leave day considering the whole salary.
https://madhu-t-k.blogspot.com/2019/...ary-and_6.html
From India, Kannur
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Thanks for quick reply , so that I can deduct the PF as per the judgement.
From India, Mumbai
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From India, Mumbai
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Dear Seniors, As per SC Judgment related to PF contribution, Kindly share Salary structure. Thanks Shrikant Singh
From India, New Delhi
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From India, New Delhi
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Dear All Please help to new salary structure finalization after increment and supreme court notification.
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Dear all Kindly share new salary structure after new pf contribution.
From India, Chennai
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From India, Chennai
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Can we deduct employee contribution towards PF from the backdated period? I mean, we would like to align with the Supreme Court verdict effective from April 2019. Now, salaries and wages from April to June have already been paid. Under these circumstances, can we deduct the differential employee contribution towards PF? Or is there any rule or verdict that prohibits us from recovering the amount retroactively?
Regards,
R K Dixit
From India, New Delhi
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Regards,
R K Dixit
From India, New Delhi
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So far, there has been no direction from the EPFO in this regard. If you were not served a notice under section 7A of the Act, you need not go back to a previous period. Instead, you can start deducting and contributing to the PF on the gross from the coming month onwards. Delaying further may invite complications in the future. You can pay the old balance as a contribution on omitted wages once the EPFO releases an official notification.
From India, Kannur
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From India, Kannur
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Thank you very much, sir. I do agree with you, and we are going to implement this within this month itself. At the same time, suppose we pay it wef - April - 2019, under this situation, I need clarification on whether we can recover the differential PF amount from the employee or not.
Regards
From India, New Delhi
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From India, New Delhi
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Legally, we cannot recover the difference amount from the employees. However, the EPFO will not have any objection, nor do they have any say in it if you recover it from the employees. In one case, I have had a discussion with the employees and made a settlement that whatever the employer pays in addition to their already paid contribution shall be recovered from the employees in installments along with their current month's contribution.
Since that company is a new company started in the middle of 2018, the arrears will be less. When I advised that we should contribute the difference starting from the date of coverage, the management agreed to it. I then had a discussion with the employees, and they agreed that over 13 months, their old amount can be recovered. However, the payment is still pending because some practicing advocates intervened and told them that it is not required. They mentioned that as long as an enquiry under section 7A is initiated by the EPFO, there is no need to pay it.
When such a suggestion comes from the advocates, it is natural that the employers will hold it.
From India, Kannur
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Since that company is a new company started in the middle of 2018, the arrears will be less. When I advised that we should contribute the difference starting from the date of coverage, the management agreed to it. I then had a discussion with the employees, and they agreed that over 13 months, their old amount can be recovered. However, the payment is still pending because some practicing advocates intervened and told them that it is not required. They mentioned that as long as an enquiry under section 7A is initiated by the EPFO, there is no need to pay it.
When such a suggestion comes from the advocates, it is natural that the employers will hold it.
From India, Kannur
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