Pf Criteria - Doc Download

lovekush@gmail.com
So you all want to say that if basic is less than Rs. 6500 then also a company is entitle to deduct PF.
Now I am totally Confused!!!!!
Seniors pls give me relevant information.
Regards,
Amit
kamatmv
PF Office circular no. coord/4(6)2003/clarification/13633 dt. 6.6.2008 mentions \" advised to ensure that PF contributions on at least Minimum Wages are remitted by the establishments. It is also directed to review all such cases disposed of u/s. 7-A of the Act where determination of dues has taken place on wages lesser than the Minimum Wages.\"
sanjaykale
In such a case, if basic is less than rs.6500/- and the company is deducting the contribution on less amount, pf authority will take leagl action under 7a. Case will be processed and finally we have to pay diff. Amount with penalty.
siddharthajenapur
please some body send the detail returns under epf act and ESI
fc.vadodara@nidrahotels.com
PF can be deducted on Basic + DA even though the total amount is less than Rs. 6500/- but the Basic and DA should not be less then the prescribed MW. If the MW of a skilled worker is Rs. 6600/- per month and you show the Basic and DA as Rs. 3000/- which is wrong, you have to pay the PF on the maximum cap of Rs. 6500/-
Eswararao Ivaturi
Hellow,while deducting PF the definition of salary
given in sec. 2(b) of the
act is to be read with Sec.6
Accordingly total
Salary is to be worked out(Basic + DA + retaining
Allowance if any) and the total amount whether it is
less than Rs.6500/- or more
deduction of PF should not exeed the prescribed percentage on the maximum
ceiling amount of Rs.6500/-
However if any employee is on continuous service and
exceeds the salary limit of Rs.6500/-, the PF contribution over and above the limit of Rs.6500/- depends upon the employer.
However, payment of minimum wages as per the act is to be ensured, otherwise Section 7A (recovery of
differential amount with
penalty) will attract.
Hope this may give some clarity.
Eswararao Ivaturi.
Dear Amit.
The PF is deductable on Minimum Wages (Basic plus DA), You can not go less than it. Whether wages earned is for a day will attract PF provisions.
Hope in tune of your querry my resply will meet your purpose.
Thanks & Regards
Vinod
HR, Tarapur
mahendra88_p@yahoo.in
Dear all,
Please find the attachment and solve your query related pf, pf eligibility, pf deduction, pf related employer responsibility and pf deduction criteria etc.
Thanks and Regards
Mahendra Patole
1 Attachment(s) [Login To View]

shah01ankita
Hello Sanjay...

Under the PF Act, an organization is applicable when it has 20 or more employees...

So once the company is covered under PF Act (whenever it employed 20+ employees) then the company continues to be covered under PF Act even if the employment drops below 20 at any given time.

Similarly, an employee is eligible to PF contribution if at the time of joining (or introduction of such policy) the basic+da of that employee is less than or equal to 6500.

Meaning to say that all employees whose basic is less than 6500 (irrespective of gross/ctc) are covered under pf act and the contribution would be -

12% of basic by employee

12% + 1.61% of basic by employer which is distributed as -

a) 8.33% to pension scheme

b) 3.67% to PF fund

c) 1.1% PF and pension account handling chrges

d) 0.5% EDIL plan

e) 0.01% EDIL account handling charges

So if the person's basic is 3000, PF contributions would be

Employee - 12% of 3000 = 360

Employer -

a) Pension.................................... 249.90 i.e. 250

b) PF............................................. 191.1 i.e. 191

c) PF and Pension a/c handling.... 33

d) EDIL.......................................... 15

e) EDIL a/c handling..................... 0.30 (rounded off to nearest currency possible)

Hope this cleared your doubt.

Now if at any point the employee's salary is revised upward, then also the employee continue to remain covered under PF act and a bare minimum of 12% of 6500 ought to be contributed by both parties. In such cases a bare minimum of 780 Rs p, is to be contributed by each party.

Secondly - Ideally a person who is getting 20,000 as monthly gross and getting just 3000 as Basic, is something fishy. Obviously the basic amount will depend on the components to be given and other factors, yet it will rise concern as accordingly to normal practice, we find basic close to 40% of gross.

Hope this was able to clear your doubts.
varghesemathew
PL note that EPF is applicable to a factory or establishment if it employs 20 or more persons on wages..Not when it has 20 or more employees .Understand the difference.An employee 'X ' resigns from Co 'A' .He withdraws his PF amount 2 months after resignation.after the resignation.Later he joins a new Co with salary above Rs 6500/-pm.He cannot be excluded from EPF.Instead ,if he had withdrawn the PF on superannuation or on migrating from India he would have been an excluded employee.
Varghese Mathew
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