How Would You Tackle PF Ceiling Changes and Worker Absenteeism in HR Interviews?

Dear Seniors, the interviewer asked me two questions:

1. Impact of PF Ceiling Limit Increase

If the ceiling limit of PF increases from 6,500/- to 15,000/-, what will be the effect on both employees and employers?

2. Managing Worker Absenteeism

In a company with 1,000 workers, if any worker is absent from their duties, how can the HR manager take action against them? How can HR determine if a worker is absent from their duties?

Please guide me on these questions.

Employer's Liability Under EPF Contributions

Presently, the employer's liability under EPF contributions is limited to only the salary of Rs 6,500 per month. If the ceiling is increased from Rs 6,500 to Rs 15,000, then the employee is required to pay EPF contributions on Rs 15,000. Therefore, PF contributions of both the employee and employer would increase, and the employee would receive more pension and provident fund benefits.

Model Standing Orders and Absenteeism

If in any company, the number of workers is more than 100, then the model standing orders of the respective state would be applicable. As unauthorized absenteeism is misconduct, the procedure prescribed under model standing orders is required to be followed for taking action against delinquent employees. HR would only be aware of absenteeism from the attendance register, punching system, or through information from supervisors.

Consequences for Employees and Employers

1. The employer has to pay more by way of P.F. contribution and administrative charges, which means extra cost for them.
2. The employee will receive more P.F. since interest will be paid on a higher amount.
3. The employee will get more pension.
4. The employee can withdraw more money as an advance from their P.F. account to meet financial needs, educational expenses, buying a house, etc.
5. Their CTC figure will increase.

Regards,
B. Saikumar

Monitoring Worker Absenteeism

If a worker is absent from duty, it will automatically come to HRD's attention since they maintain an attendance monitoring system. Additionally, you need to be informed of this during your daily meetings with the section supervisor. The time office personnel are responsible for recording the in/out details of every worker in the factory. These records are then reviewed by the HR Manager on a daily basis. Particularly for critical sections, the manager must monitor absenteeism details and make arrangements for alternatives.

This process outlines how to stay informed about absenteeism details.

Regards,
Palaniswamy Ram