bhaveshgohel21488
Practising Advocate (Taxation Laws)
Can Anyone Know me that PF Deduction on Director Remuneration. If Yes let me know the procedure of Deduction
From India, Gandhidham
dixonjose02
117

Sr. HR Manager
Full time Director’s are also employee’s as per definition in PF Act. Hence, their PF should be deducted just like other employees.
From India, Mumbai
saswatabanerjee
1970

Partner - Risk Management
What would be the case for Directors who are not employees of the company, but are paid some amounts for services, sitting fees, etc ?
And also for commission paid on profit to directors ?
Are they exempt from PF as not being salary ?

From India, Mumbai
varghesemathew
906

Now freelance consultant in Labour law/HR
Directors who do not receive wages are excluded from EPF scheme. Varghese Mathew
From India, Thiruvananthapuram
ravi5554
421

Asst.Manager -HR
Hi,
1. Yes, it is applicable to Director as per Pf act “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer. It includes any person - (i) employed by or through a contractor in or in connection with the work of the establishment.
2.An employee who is drawing ‘pay’ above prescribed limit (presently Rs 6,500) can become member with permission of Assistant PF Commissioner, if he and his employer agree. [para 26(6) of EPF Scheme]

From India, Mumbai
sibabrata.majumdar
80

Management Consultants Legal & HR
Hi,
The Executive Directors who are looking after day to day activities of the company and who are directly in the pay roll of the company drawing salary like other employees per month, those Directors are the employees of the company under defination of the PF Act . So it is compulary on the part of the company to deduct PF contribution in accordance with the PF & MP Act as applicable.
Other Directors who do not receive salary / wages from the company are excluded from PF & MP Act. Normally they receive sitting fees for attending board meeting, reimbursement of hotel expenses for staying, commission etc as prescribed under Companies Act.In other words, they are not the whole time Directors of the company.
Regards,

From India, Calcutta
bhaveshgohel21488
Practising Advocate (Taxation Laws)
Any Company can deduct GRATUITY/PENSION FUND from salary. if it is deducted from salary than which department to deposit by empoyer
From India, Gandhidham
ish gambhir
consultant
any notification or judgement in support, pl share
From India, Jaipur
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