I have a company with 32 employees . Only three have a salary of less than Rs. 6500/- Am i liable for PF regitration and give pf to the three employees ?
From India, Pune
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1From India, Pune
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Since you have 32 employees, you are covered by EPF. However, only those three employees whose salary is below Rs 6500 will be covered, and therefore, your contribution will be limited to that extent only.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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what is the minimum number of employees to be covered under pf, please reply. Regards, vinda.
From India, Bangalore
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From India, Bangalore
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An establishment with a minimum number of 20 employees will be covered by EPF Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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A person with a salary of Rs.10000-20000 and his age is above 50years , will he be entitled for PF deductions . If he is eligible then according to which section of PF Act can you tell me .
From India, Madras
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From India, Madras
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Eligibility for Provident Fund Membership
The Employees' Provident Fund and Miscellaneous Provisions Act does not restrict any employee from becoming a member of the EPF. Therefore, if the employer is willing to contribute their share of PF, then they can certainly become a member of the Provident Fund. However, since the employee is above 50 years of age, the employer's contribution of 12% shall be deposited exclusively in the Provident Fund alone, without breaking it as 3.67% in PF and 8.33% in the Pension Fund.
Regards,
Madhu.T.K
From India, Kannur
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The Employees' Provident Fund and Miscellaneous Provisions Act does not restrict any employee from becoming a member of the EPF. Therefore, if the employer is willing to contribute their share of PF, then they can certainly become a member of the Provident Fund. However, since the employee is above 50 years of age, the employer's contribution of 12% shall be deposited exclusively in the Provident Fund alone, without breaking it as 3.67% in PF and 8.33% in the Pension Fund.
Regards,
Madhu.T.K
From India, Kannur
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Thanks.
Sample Salary Breakdown of Employees
Name | Basic+DA | HRA | Medical Reimbursement | Conveyance | LTA | Spl All | Gross Pay (per month)
A | 10000 | 5000 | 1250 | 800 | 833 | 2117 | 20000
B | 15000 | 7500 | 1250 | 800 | 1250 | 4200 | 30000
C | 7500 | 3750 | 1250 | 800 | 625 | 1075 | 15000
D | 12500 | 6250 | 1250 | 800 | 1042 | 3158 | 25000
E | 37500 | 18750 | 1250 | 800 | 3125 | 13575 | 75000
F | 4250 | 2125 | 625 | 400 | 354 | 746 | 8500
G | 30000 | 15000 | 1250 | 800 | 2500 | 10450 | 60000
When I was interacting with a PF Consultant, he mentioned that the Basic + DA may be >6500 or >10,000 to >40,000.
Example
Suppose if the Employee has Basic+DA of 10,000, he says that we can calculate for 6500 as Basic+DA and we can leave the remaining amount of Basic+DA 3500.
But we can show the below Salary breakup for PF records:
Name | Basic+DA | HRA | Medical Reimbursement | Conveyance | LTA | Spl All | Gross Pay (per month)
A | 10000 | 5000 | 1250 | 800 | 833 | 2117 | 20000
My Questions
• Suppose if I'm following my consultant's advice, will it create any problem for me?
• My employee strength is 40, and most of them have a Basic+DA of >10,000-40,000.
• Should we include the employee in PF or NOT?
• The consultant is saying that if the Employee strength is 40, at least 30 Employees should be in ESI AND EPF.
• In case any PF inspectors come for inspection, they will definitely impose a fine for not paying PF contributions.
• At present, out of 40 Employees, we have 5 Employees in ESI and EPF.
Please give me valuable suggestions to sort out my problem.
From India, Madras
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Sample Salary Breakdown of Employees
Name | Basic+DA | HRA | Medical Reimbursement | Conveyance | LTA | Spl All | Gross Pay (per month)
A | 10000 | 5000 | 1250 | 800 | 833 | 2117 | 20000
B | 15000 | 7500 | 1250 | 800 | 1250 | 4200 | 30000
C | 7500 | 3750 | 1250 | 800 | 625 | 1075 | 15000
D | 12500 | 6250 | 1250 | 800 | 1042 | 3158 | 25000
E | 37500 | 18750 | 1250 | 800 | 3125 | 13575 | 75000
F | 4250 | 2125 | 625 | 400 | 354 | 746 | 8500
G | 30000 | 15000 | 1250 | 800 | 2500 | 10450 | 60000
When I was interacting with a PF Consultant, he mentioned that the Basic + DA may be >6500 or >10,000 to >40,000.
Example
Suppose if the Employee has Basic+DA of 10,000, he says that we can calculate for 6500 as Basic+DA and we can leave the remaining amount of Basic+DA 3500.
But we can show the below Salary breakup for PF records:
Name | Basic+DA | HRA | Medical Reimbursement | Conveyance | LTA | Spl All | Gross Pay (per month)
A | 10000 | 5000 | 1250 | 800 | 833 | 2117 | 20000
My Questions
• Suppose if I'm following my consultant's advice, will it create any problem for me?
• My employee strength is 40, and most of them have a Basic+DA of >10,000-40,000.
• Should we include the employee in PF or NOT?
• The consultant is saying that if the Employee strength is 40, at least 30 Employees should be in ESI AND EPF.
• In case any PF inspectors come for inspection, they will definitely impose a fine for not paying PF contributions.
• At present, out of 40 Employees, we have 5 Employees in ESI and EPF.
Please give me valuable suggestions to sort out my problem.
From India, Madras
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if any employees' basic salary is less than 6500 then he would be member of pf.more than 6500 would not be entitle for pf . Lokesh
From India, Delhi
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From India, Delhi
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Tamim,
Your query was answered in the following link: https://www.citehr.com/278721-clarif...about-epf.html.
Regards,
Madhu.T.K
From India, Kannur
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Your query was answered in the following link: https://www.citehr.com/278721-clarif...about-epf.html.
Regards,
Madhu.T.K
From India, Kannur
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Understanding Arrears and Interest Liability
What kind of arrears is it? If it is wages payable in 2015-16 paid now, then you need not pay any interest or damages. But if it is arrears of PF collected in 2015-16 and is paid now, then certainly it will attract interest and damages.
In long-term settlements, it often happens that the negotiation will take months to come to a conclusion, leading to payment of arrears of salary. Since the payment of salary and PF deduction therefrom takes place now, you can pay it along with this month's contribution without any interest and damages.
From India, Kannur
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What kind of arrears is it? If it is wages payable in 2015-16 paid now, then you need not pay any interest or damages. But if it is arrears of PF collected in 2015-16 and is paid now, then certainly it will attract interest and damages.
In long-term settlements, it often happens that the negotiation will take months to come to a conclusion, leading to payment of arrears of salary. Since the payment of salary and PF deduction therefrom takes place now, you can pay it along with this month's contribution without any interest and damages.
From India, Kannur
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What you have to do is to include this salary along with the salary paid for December and pay the PF contribution along with the normal contribution due for December. If you show it as arrears of salary paid, then the system will take it as a delayed payment only.
From India, Kannur
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From India, Kannur
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We have made separate challans for separate months, and now the system has imposed penal damages and interest against these challans from the arrear month. Now, please guide us on what we can do in this situation. Can we appeal for a waiver for this? We cannot afford to pay this from the salary as these individuals already have Rs. 1800 as EPF deductions, and the total amount of arrears in EPF comes to Rs. 4000 as deductions at 12%. Please provide guidance on this matter.
From India, New Delhi
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From India, New Delhi
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EPF and MP Act Contribution Limits
The EPF and MP Act has not restricted the contribution to Rs 1800. You can pay PF on any higher amounts. Therefore, there will not be any system error if you add the arrears payable to the salary amount for the month of December and pay the contribution on this total amount.
Handling Separate Challans and System Errors
Now, having made separate challans, the system will take it as an omission of wages and, naturally, will demand interest and damages. Therefore, the only remedy is to write a letter to the EPFO and ask for a personal hearing in which you can submit the facts and get a waiver of interest and damages.
From India, Kannur
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The EPF and MP Act has not restricted the contribution to Rs 1800. You can pay PF on any higher amounts. Therefore, there will not be any system error if you add the arrears payable to the salary amount for the month of December and pay the contribution on this total amount.
Handling Separate Challans and System Errors
Now, having made separate challans, the system will take it as an omission of wages and, naturally, will demand interest and damages. Therefore, the only remedy is to write a letter to the EPFO and ask for a personal hearing in which you can submit the facts and get a waiver of interest and damages.
From India, Kannur
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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