Dear Limit of PF is (6500) BASIC+DA
PF ACT IS APPLICABLE WHERE MINIMUM 20 WORKERS ARE WORKING OR WERE WORKING ON ANY DAY OF THE PRECEEDING TWELVE MONTHS. IF THE ACT APPLICABLE ONE TIME IT WILL BE APPLICABLE FOREEVER WHETHER THE EMPLOYEES LESS THEN 20
THE EMPLOYER WOULD BE RESPONSIBLE TO DEDUCT PF WHOSE WAGES IS LESS THEN 6500 OR 6500.OFCOURSE THE EMPLOYEE DOES NOT TO DEDUCT PF
EMPLOYEER HAVE VOLUENTARY OPTION ABOUT THOSE EMPLOYEES WHOSE WAGE IS MORE THEN 6500.
NOTE- IF AN EMPLOYEE WAS MEMBER OF PF IN HIS LAST COMPANY THEN THE EMPLOYER SHALL DEDUCT PF(6500) OF THE EMPLOYEE IN SAME CASE.
DEAR SENIORS PLEASE ADVISE ME IF I AM WRONG
Regards
Arun Gahelot
G.P. ADAMPUR
09654299247
From India, Delhi
PF ACT IS APPLICABLE WHERE MINIMUM 20 WORKERS ARE WORKING OR WERE WORKING ON ANY DAY OF THE PRECEEDING TWELVE MONTHS. IF THE ACT APPLICABLE ONE TIME IT WILL BE APPLICABLE FOREEVER WHETHER THE EMPLOYEES LESS THEN 20
THE EMPLOYER WOULD BE RESPONSIBLE TO DEDUCT PF WHOSE WAGES IS LESS THEN 6500 OR 6500.OFCOURSE THE EMPLOYEE DOES NOT TO DEDUCT PF
EMPLOYEER HAVE VOLUENTARY OPTION ABOUT THOSE EMPLOYEES WHOSE WAGE IS MORE THEN 6500.
NOTE- IF AN EMPLOYEE WAS MEMBER OF PF IN HIS LAST COMPANY THEN THE EMPLOYER SHALL DEDUCT PF(6500) OF THE EMPLOYEE IN SAME CASE.
DEAR SENIORS PLEASE ADVISE ME IF I AM WRONG
Regards
Arun Gahelot
G.P. ADAMPUR
09654299247
From India, Delhi
So many questions?...and no answers...seniors please help..!!especially to prasanna’s questions..i also need them
From India, Kochi
2From India, Kochi
Yes, i agreed with Tushar Joshi, If anyone with in the limits of EPF i.e. 6500, he/she will be covered under EPF, there is no such clause for not deducting EPF premium
From India, Dehra Dun
From India, Dehra Dun
Dear ISHAN POPAT ji yes EPF act is applicable but it is depend upon the employee if he is agreed to deduct, then EPF will deduct on 6500 only rather basic+DA is more than 6500
From India, Dehra Dun
From India, Dehra Dun
Dear all members
PF act says
1. Basic limit for PF is RS. 6500
2. At the time of fresh joining of the estt. PF is mandatry upto basic of Rs. 6500/- but if the employees was not previously member of PF vide given declaration in form no.11 then there is not a mandatry condition (the estt or employee both should be agree to contribute EITHER UPTO 6500 OR MORE THEN 6500)
3. Act also says that PF to piece rated employees is also mandatry.
For any type of PF quries pls mail me
RajeshKhattar
Muskan Consultancy Services
Delhi(India)
PF & ESIC Consultants
From India, Delhi
PF act says
1. Basic limit for PF is RS. 6500
2. At the time of fresh joining of the estt. PF is mandatry upto basic of Rs. 6500/- but if the employees was not previously member of PF vide given declaration in form no.11 then there is not a mandatry condition (the estt or employee both should be agree to contribute EITHER UPTO 6500 OR MORE THEN 6500)
3. Act also says that PF to piece rated employees is also mandatry.
For any type of PF quries pls mail me
RajeshKhattar
Muskan Consultancy Services
Delhi(India)
PF & ESIC Consultants
From India, Delhi
Hi Prasanna,
Here are the answers to your questions:
1. Some companies limit basic to RS6,500 and contribute 12% (RS 780)to it as PF. Is this method acceptable?
Ans: Yes. This method is applicable, and even in case if the company is trying to deduct your PF on the whole of your basic, you as an employee have option of giving direction to the employer to restrict your deduction to only Rs.780/- (i.e. upto 6500/-). This would help you to have more cash in hand. You may choose to pay more as Vol. contribution, as and when you feel that you have excess cash in hand.
2. If PF is not mandatory for employees drawing more than 6,500 as basic. Why do most companies pay PF even if thier employees draw much more than 6,500?
Well. Many companies are living in bliss thinking that this is a noble saving, and that would help employees retiring from work they would have a good amount in hand. But many don't understand that withdrawal of amount from PF dept. is not very smooth, and also they don't actually pay your 8.5% of the amount promised, with their own wiered calculations. You could earn much more outside now a days of the same amount, and you be your own boss of the money invested.
Secondly, it becomes an administrative issue for a company to avoid covering one or two out of PF coverage. But in fact, every employee has a right to decide whether to join the fund or opt out of it, at the time of joining, if his/her basic wages is more than 6500/-. A mere declaration in Form 11 stating that s/he has ceased to be a member of PF by making an application for withdrawal, along with a declaration stating that s/he does not intend to continue as a member of PF, the Company MUST HONOUR, as it is the employee's Hard earned money.
3. Is it true that once a company is registered under EPF before its employees were below the 6,500 mark, the company will have to continue covering its employees under EPF even after the employees cross the 6,500 mark and continue covering the new employees even if their basic is above 6,500/-.
Yes. It is true, that you have to continue to cover the employee even after crossing the 6500/- limit. However, you have an option of directing the employer to restrict the deduction only upto 6500/-.
You may choose to opt out only when you join another company.
K.Ramesh
From India, Bangalore
Here are the answers to your questions:
1. Some companies limit basic to RS6,500 and contribute 12% (RS 780)to it as PF. Is this method acceptable?
Ans: Yes. This method is applicable, and even in case if the company is trying to deduct your PF on the whole of your basic, you as an employee have option of giving direction to the employer to restrict your deduction to only Rs.780/- (i.e. upto 6500/-). This would help you to have more cash in hand. You may choose to pay more as Vol. contribution, as and when you feel that you have excess cash in hand.
2. If PF is not mandatory for employees drawing more than 6,500 as basic. Why do most companies pay PF even if thier employees draw much more than 6,500?
Well. Many companies are living in bliss thinking that this is a noble saving, and that would help employees retiring from work they would have a good amount in hand. But many don't understand that withdrawal of amount from PF dept. is not very smooth, and also they don't actually pay your 8.5% of the amount promised, with their own wiered calculations. You could earn much more outside now a days of the same amount, and you be your own boss of the money invested.
Secondly, it becomes an administrative issue for a company to avoid covering one or two out of PF coverage. But in fact, every employee has a right to decide whether to join the fund or opt out of it, at the time of joining, if his/her basic wages is more than 6500/-. A mere declaration in Form 11 stating that s/he has ceased to be a member of PF by making an application for withdrawal, along with a declaration stating that s/he does not intend to continue as a member of PF, the Company MUST HONOUR, as it is the employee's Hard earned money.
3. Is it true that once a company is registered under EPF before its employees were below the 6,500 mark, the company will have to continue covering its employees under EPF even after the employees cross the 6,500 mark and continue covering the new employees even if their basic is above 6,500/-.
Yes. It is true, that you have to continue to cover the employee even after crossing the 6500/- limit. However, you have an option of directing the employer to restrict the deduction only upto 6500/-.
You may choose to opt out only when you join another company.
K.Ramesh
From India, Bangalore
Hi mpartheepan,
You can close your PF account only if you have left your organisation, and can withdraw the amount by making an application in Form 19&10c to the PF department.
You have to wait for a waiting period of 60 days after leaving the organisation, even to make an application to the PF department, as they won't even entertain an application for 60 days from the date of your leaving.
Your Form 19&10C must be duly attested by the authorised signatory of the company from where you are leaving, and that must be annexed with a Form 3A (for the current period of contribution), along with your ONE blank cancelled cheque to the department which will help them to identify your actual Bank account.
K.Ramesh
From India, Bangalore
You can close your PF account only if you have left your organisation, and can withdraw the amount by making an application in Form 19&10c to the PF department.
You have to wait for a waiting period of 60 days after leaving the organisation, even to make an application to the PF department, as they won't even entertain an application for 60 days from the date of your leaving.
Your Form 19&10C must be duly attested by the authorised signatory of the company from where you are leaving, and that must be annexed with a Form 3A (for the current period of contribution), along with your ONE blank cancelled cheque to the department which will help them to identify your actual Bank account.
K.Ramesh
From India, Bangalore
Hi Abinavhr,
Once an employee is covered under EPF, whether his / her basic is less than or more than 6500/-, s/he must continue under EPF till his/her leaving the organisation, and there is no other option about it.
It is possible for the company to allow such an employee to exit the PF, if s/he is deputed on assignment for a shorter period outside india, they can officially exit the employee, and on his/ her joining back, can take Form 11 along with a self declaration for exemption him/her from PF. Other than that there is no other possibility is available.
With Best Regards,
K.Ramesh
From India, Bangalore
Once an employee is covered under EPF, whether his / her basic is less than or more than 6500/-, s/he must continue under EPF till his/her leaving the organisation, and there is no other option about it.
It is possible for the company to allow such an employee to exit the PF, if s/he is deputed on assignment for a shorter period outside india, they can officially exit the employee, and on his/ her joining back, can take Form 11 along with a self declaration for exemption him/her from PF. Other than that there is no other possibility is available.
With Best Regards,
K.Ramesh
From India, Bangalore
The maximum limit of Pf is Rs.6500/PM. It is manadatory if act is aplicable in such organigation because some organigation exmpted due to deffrent reason. Therefore if once salry is under the aforesaid limit Pf will be deducted from both the side, but to get employer contribution at the time of withdrawling at least a period of six months should be completed.
Regards.
Subhash Sharma
Mgr.(P&A):icon8:
From India, Delhi
Regards.
Subhash Sharma
Mgr.(P&A):icon8:
From India, Delhi
1)If an Employee has his or her basic salary as 6500 or less than it than he/ she is eligible for PF.
2)An organisation having atleast 20 employees or one comes under the the EPF industrial unit definition has to enroll itself for PF
3)But wat if an employee's basic salary is more than 6500 or got increment and now has basic salary more than 6500. In this case if the employee is already registered with PF than whther he switch on from an organisation to another or gt increment, than also PF will be deducted.
4)If an employee, who was getting PF in his earlier organisation but now donot want to deduct the same than he can fill a form, dats is form 11.
5)When u can claim ur PF-if and only if u work for minimum six month with the same organisation u can claim for your PF after the expiring of one month from the date of your accpetance of resignation.
regards
sapna
From India, Delhi
2)An organisation having atleast 20 employees or one comes under the the EPF industrial unit definition has to enroll itself for PF
3)But wat if an employee's basic salary is more than 6500 or got increment and now has basic salary more than 6500. In this case if the employee is already registered with PF than whther he switch on from an organisation to another or gt increment, than also PF will be deducted.
4)If an employee, who was getting PF in his earlier organisation but now donot want to deduct the same than he can fill a form, dats is form 11.
5)When u can claim ur PF-if and only if u work for minimum six month with the same organisation u can claim for your PF after the expiring of one month from the date of your accpetance of resignation.
regards
sapna
From India, Delhi
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Hc-pf matter.doc
HC All - Trainees not covered for PF -2010.pdf