Need Help for PF: LOOK HERE (PART I)

Dear All,

I am trying to start a Statutory Laws Series where we will discuss about certain portions of various Acts which Confuse us. The First Act which I feel get us all Confused is PF. So, I start with PF as the First of the Series. members can start various legislatures and feel free to discuss their problems:

PROVIDENT FUND:

FIRST CONFUSION: The Basic Limit of Rs. 6,500/-

This limit of Rs. 6,500/- is given in the Employee Pension Scheme and not in Employee Provident Fund and since the EPS and EPF are part of the main Act -- Employees PF & Misc. Provisions Act, where there is no such limit the following should be followed:

1) Organisations covered under PF should deduct from the total basic and the limit of Rs. 6,500 does not apply for PF deduction.

So, for example a person whose Basic is 10,000, 12%/10% as the case may be should be deducted on the total amount of Rs. 10,000 and not on Rs. 6,500/-

2) Organisations covered under PF should give PF to every employee irrespective of whether his basic crosses 6500 or not. exemption of PF on ground of Basic Amount Limit is not given in the Main Act.
The treatment in this regard is that Rs. 6500 should be the limit for calculating/apportionment of contribution amount that should go to Employee Pension Scheme. The rest will go into EPF.

Comments are expected.

Regards,
SC

Hi Swastik,

Some organisations are just deducting 12% on Rs. 6500/- basic, wherein the monthly contribution from both the employer and the employee is Rs. 780/- each respectively.

For eg. even if my basic is Rs. 10,000/- pm, the PF contribution from both is Rs. 780/- which is deposited with the PF office.

My question is:

Is this legal?
If not legal, then how come even the PF authorities are not objecting to it?

Hope you solve my query!!!

Regards,

Anuradha

Dear Anuradha,

It is illegal, and nobody checks the amount you are contributing. This is a major problem with our Regulatory Authorities if you even deposit any amount, seldom it is check. It is only at the time of Inspection or withdrawl all these come to light. The next problem is majority donot know many things about PF. Suppose a person works for 20 years with annual increment in Basic. There are very few employees who keep track of the amount.

You, can write to PF Commissioner telling him/her about you case and just make them give you a reply. Try it, I tell you, it will be a memorable experience.

Regards,
SC

Hi Swastik,

Wish i could do that!!! Being in HR department, I cannot do it.


Regards,

Anuradha

Dear Anuradha,

You can definitely do it. I know thinking about our jobs we sometimes keep mum and as HR we knowingly do things which we donot personally approve of.

DOnot do it directly, do it through a friend or employee.

Regards,
SC

Hi SC,

First of all, please accept my congratulations for having started a statutory series in the forum for the benefit of the members. Yes, PF is a major concern as it is being interpreted wrongly or should I say to the benefit of the employers by the employers or by so called PF consultants!

Let's wait and see the different views/experiences of our friends like Anuradha. At the time of conclusion, I request you to put down all the rules in a nutshell so that every HR person is aware of the true fact.

-Srinaren

hye Everybody

Regarding Pf I wanted to tell Something Very Interesting.

My (Before me he was woking as HR Executive)senior he has filled his

Final Settlement Form With 3 Years Experience. Actually he has worked

for only one Year. what he has done is he has made a Form 3 A for 3

years and he has submitted the form it has been approved by the PF

Authorities. He has cleared his Settlement. I was Shocked, this type of

thing happens means in what way they are maintaing our PF records.

I Hav one Final Claim form with me, that person he wanted to continue

his Pension amt.

when u r Applying for Final Settlement can we take only Employee

contribution and 3.67% of employer contribution. wheather this kind of

things happens means can they realy maintain our records.

Please advice me in this Regard.

Hope, Iam not going out of this subject


Regards
Reena

Dear Srinaren,

Thank you for your kind words.

What types of rules are you looking for, we can either refer to Text or sites like vaikilono1 or EPFO Website or laws4india etc. to se the text. Actually my intention is to channelise queries and clear confusions through this series so whenevr new people come they can get one post to satisfy their queries instead of posting new and different posts which might get overlooked.

Dear Reena,

As far as I know EPF and EPS are separate funds and PF can be withdrawn if the person gives an undertaking that he is no more employed.

As for Pension, you can use the option to claim, commute pension after you complete 58 years of age or the member dies.

This is the law as far as I know.

And Reena, you can ask anything regarding PF and will never go out of subject

In the end, please dont get shocked as these are quite common. I have seen people withdrawing PF and joining new service where they are getting PF under the same Regional Office and there has been no break in service.

" There is more things in Heaven and Earth than dreamt of in your philosophy "

Regards,
SC

Dear All,

Thank you foryour responses. Members please come up with comments.

Regards,
SC

hi Swastik,

this is really a very wonderful move of starting a discussion topic on things on which everybody has knowledge but maybe it's not compiled in a right way. A real good move indeed to get all our queries solved.

Well, even i have a small query. I am very recent to the job of Hr executive and so one thing that crops up in my mind is that the employer makes the equal contribution to our PF. That is agreed then why is that amount shown as a deduction from our gross salary in our salary slips.

I am not very clear about that and i would be grateful if you could throw some light on the same.