In some Service Providers companies PF are not deducted from the Gross salary tell me is this legal or not ? Means if the Salary of one employee is less than 20k per month,o pf is mandatory to deduct and if one's salary per month is above 20k month then pf is not mandatory to deduct. kindly give me the appropriate reply so as to better understand the concept of pf ..
4th July 2018 From India, Delhi
Hello there,
Every company who are registered with shops and establishment act or factories act has to contribute their PF and their employees PF every month(this only applicable for employees count is more than 20) - it is a statuary law.
the current slab of PF is 21,o00 or equal, people whose salary is more than that can voluntarily can apply the PF to continue the service.
4th July 2018 From India, Hyderabad
But my company is a size of more than 20 employees , recently our MD has decided not to contribute to PF whose salary is more than 20k per month means for the new joiners , but those employees who are already contributing to PF , they cant be dropped in between and continued for the same. And one more thing , my company is associated with the third party to submit the pf and esic challans as earlier there was no HR person is it possible , the company can submit the pf and esic challans by the third party..and if its so , the company is paying extra cost for the same even after having HR person in the company . Means what say u , if i suggest to the company not to associate to the third party for the same , means the company is bearing extra cost upon them even after having the HR person.
5th July 2018 From India, Delhi
Hi Charu,
Actually i have heard that Nowadays in few companies PF-ESI work is handling by accountants or CA's . Some Companies have HR who is handling this work. So i think its management's will or decision from whom they want to get it done.
Veronica Singh
30th August 2018 From India, Ludhiana
As above reply, it is management will. There is a small thing of making the pf payment as the salary for 15k, even if it is above 20k.
HR Executive.
18th June 2019 From India, Nellore
If you don't want contribute towards PF, then you can submit form-11 for all your employees to exempt from PF.
Basic limit 15k not 21k, just for your information.
23rd July 2019 From India, Chennai
Sampathkumar Sir, please elaborate the use of form 11
Thanks and Regards
Gopal Pachimuthu
HR Executive
9th August 2019 From India, Chennai
Dear Concerned,
PF will be deduct on basic value. If employee basic is 15500 so pf will be not deduct. we can deduct on same value also but its depend on company. If employee basic is 14900 so pf will be deduct definitely 12%.
Nitin Sharma
18th September 2019 From India, Delhi
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