Partner - Risk Management
Consultancy In Pf
5th June 2017 From India, Mumbai
15000*12% = 1800
(18000 EE + 1800 ER = 3600)
Total of 3600 Rs. will be deducted from her salary.
1.15% admin charges has to be bared by the management, which is nominal, any management can say yes.
This would be the right treatment.
5th June 2017 From India, Hyderabad
Please give your opinion based on the PF act.
It is not allowed to deduct Employer's contribution from Member even member agree.
It not what is right treatment, Its is what is legal.
If member is already EPF member, as per form 11 declaration, employer has no option not to deduct PF. He must deduct.
IF member above 15 K wages and his first employment, employer can treat his as excluded member and not to deduct PF. If employer wishes to deduct PF, no EPS will be diverted. All contribution will go to ER share.
6th June 2017 From India, Pune
Many Thanks For yours valuable inputs with regard to my query pertain to coverage in PF if employee basic plus DA is exceed 15K.
However some of the Labour Laws Advocate as well as HR professionals are in the view that opportunity to avail PF benefits must be offer to all employees irrespective of their drawing. Hence it lead to confussion whether to provide her the opportunity to avail PF benefits or Not.
Therefore to stand legally pls provide the relevant section/circular which state that if employees basic plus DA is exceed 15000 also is not previously member of PF shall be exclude from PF coverage the management as per their discretion may cover such employees in PF or can even exclude.
7th June 2017 From India, Jaipur
The PF basically applies to everyone in an organisation with more than 19 employees.
The law allows employees to claim an exemption based on certain criteria (no existing PF account and basic + da exceeding 15,000). The option is with the employee to claim the exemption, not with the management to force the exemption
9th June 2017 From India, Mumbai