1.first check the PF act is applicable to your arae or not
2.there are two kinds of organisations. one exempt and other not exempt. In the former the company can have its own fund and will control the funds as per the directiions. other we have to follow the procedure laid down by the act and rules.
3. Any employee who draws morethan 6500 has to be covered under the act.
4. in case it is more than 6500/ per month (Basic and DA), the company will have two options
a. not to cover them, because there are no legal obligataions
b. to get th eemployee's good will they will be covered. again there are two more sub-options
a. if the company wants to cover them let them be covered to the extent of 6500/ only for the remaining amount need not be covered
b. to cover them for the full ammount
But i always feel that we should follow the law. Don't cover them. But they can b reimbursed in many other ways. This will keep the employee happy and also we are following the law to avoid complications
nagaraj
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2.there are two kinds of organisations. one exempt and other not exempt. In the former the company can have its own fund and will control the funds as per the directiions. other we have to follow the procedure laid down by the act and rules.
3. Any employee who draws morethan 6500 has to be covered under the act.
4. in case it is more than 6500/ per month (Basic and DA), the company will have two options
a. not to cover them, because there are no legal obligataions
b. to get th eemployee's good will they will be covered. again there are two more sub-options
a. if the company wants to cover them let them be covered to the extent of 6500/ only for the remaining amount need not be covered
b. to cover them for the full ammount
But i always feel that we should follow the law. Don't cover them. But they can b reimbursed in many other ways. This will keep the employee happy and also we are following the law to avoid complications
nagaraj
[Login to view]