Company's Director Eligible To Be A Member Of PF? - CiteHR
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Hello All, I request you to guild me if any company’s director eligible to be a member of PF even if he himself is the employer?
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normal way an employer can not be an employee, but in case of Pvt limited companies, where active/working directors are salary paid, they are covered with EPFO at par with employees
Yes please a director of a company can also be a member of PF.
Dear Annonymous.
Befour deciding the eligibility criteria of any directors to be member of EPF i would suggest you to go through your company AOA (Association of Article) which contain the clause of company directors & their neture of directorship and directors salary as per sec 196 & 197 of companies act. 2013 however only full time directors can be member of EPF whoever is being treated u/s 192B of income tax other then full time directors such as additional directors and part time directors whose TDS is being deduct u/s 194J of income tax cannot be the member of EPF because they are professionals not companies employee, also A director cannot be in the definition of employer unless he/she is not companies share holder.
V Shakya
HR & Companies & Labour Law Advisor
A Director is not an employee under companies act, he is an agent. So if there is no service contract with the company he cannot be an employee. Thus there can be no PF.
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Directors, Executive Directors, MD etc can also be a PF member as they are supposed to act in routine in company's business. As a matter of practice their emoluments / remunerations as decided in Board of Directors Meeting carries details pertaining to each entitlements is in Salary and WAGES Account in company's ledger .Director may or may not be share holder. If PF trust is maintained, contributions will be there in Trust account or it can be in RPFC account along with other EPF members of the company.
RDS Yadav
Future Instt. Of Engg and Management Technology
labour Law Advisor

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