Business Mentor, Consultant And Trainer
Soft Skill Trainer / Hr Consultant - India
Hr - Manager
20th August 2015 From India, New Delhi
As per the EPF rules, the contribution can have ascending trend; can not be decreased.
Moreover, the penalty and damages of EPFO is at the higher rate. Hence, on time remittance is the cost effective method.
20th August 2015 From India, Madras
The EPF compliance is not only a statutory benfefit but part of a Social Security System as well. As stated by the experienced members there is no way to escape from the liability. On the contrary if it is found u r doing something which is agst the Act, that could attract damages and penalties.
However, as mentioned by u, in ur company more than 50 empl. are working. You have considered Rs. 1800/- contribution for all. Means Rs. 15000/- salary per head.
But there may be some employees whose salary structure may not be that much, so u can deduct EPF on lower salary (Basic+DA). But pls note, if u have already deducted and deposited PF on higher rate, that can't be reduced. However, u can take care the point for fresh appointments (new employees). But pls make them aware at time of enrollment.
Moreover the EPF % for employer contribution is @ 13.36%, so on Rs. 15000 salary the employee and employer contribution will be 3804/-.
If ur co. really want some Cost Cutting, I would like to focus on other O/Heads (Staff Welfare, Printing, Conv., Travelling etc.
Pls don't try to manuplates the statutory benefits. These are related to people (like us) livings, savings and future security.
21st August 2015 From India, Delhi
Once covered under PF should continue contribution still he / she retires or leaves the organization. Discontinuing will lead your organization into big trouble.
One option is , from now onwards hire any new fresher candidate (Passed out batch) / employee ( has no pervious PF contribution) for them get fill form 11 , Pay basic more than Rs.15000 /- will be excluded employees & get exempted from PF contribution.
Hope others agree with me . Am right or wrong ? Kindly advice.
21st August 2015 From United Kingdom, London
22nd August 2015 From India
Other members have given their valuable comments. Now let me suggest you something different.
You may do the exercise on the MS Excel. Find out the employer's contribution for PF if the basic pay is 35%, 40%, 45%, 50%, 55% and 60% Find out any pattern emerges.
Lastly, I second views of Mr NK Sundaram. What you have calculated in only the visible "cost" (even if we consider PF is "cost" as such). While running an organisation, there are several invisible costs, what about curtailing those costs?
22nd August 2015 From India, Bangalore
I will try to do such practises in my office . And working As Hr is really Important for me to take of of my employee and My company. I am fresher In this Field and Do not having that much experience in Legal Matter Like PF and other. I will Try to Solve this issue. Thanks
22nd August 2015 From India, Pune
1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non metro & 50% of basic for Metro
3) Con - Max Rs. 800/ P M which is Max of Rs. 9600 P A
4) Medical Reim - Max Rs. 1250 / PM which can be max of Rs 15000 PA
5) Spl Allow - Balance of Gross will be provided as Spl Allow
So automatically contribution will goes down from employer
25th August 2015 From India, Pune