PF Deduction Of Director Remuneration

bhaveshgohel21488
Can Anyone Know me that PF Deduction on Director Remuneration. If Yes let me know the procedure of Deduction
dixonjose02
Full time Director's are also employee's as per definition in PF Act. Hence, their PF should be deducted just like other employees.
saswatabanerjee
What would be the case for Directors who are not employees of the company, but are paid some amounts for services, sitting fees, etc ?
And also for commission paid on profit to directors ?
Are they exempt from PF as not being salary ?
varghesemathew
Directors who do not receive wages are excluded from EPF scheme.
Varghese Mathew
ravi5554
Hi,
1. Yes, it is applicable to Director as per Pf act “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer. It includes any person - (i) employed by or through a contractor in or in connection with the work of the establishment.
2.An employee who is drawing ‘pay’ above prescribed limit (presently Rs 6,500) can become member with permission of Assistant PF Commissioner, if he and his employer agree. [para 26(6) of EPF Scheme]
sibabrata.majumdar
Hi,
The Executive Directors who are looking after day to day activities of the company and who are directly in the pay roll of the company drawing salary like other employees per month, those Directors are the employees of the company under defination of the PF Act . So it is compulary on the part of the company to deduct PF contribution in accordance with the PF & MP Act as applicable.
Other Directors who do not receive salary / wages from the company are excluded from PF & MP Act. Normally they receive sitting fees for attending board meeting, reimbursement of hotel expenses for staying, commission etc as prescribed under Companies Act.In other words, they are not the whole time Directors of the company.
Regards,
bhaveshgohel21488
Any Company can deduct GRATUITY/PENSION FUND from salary. if it is deducted from salary than which department to deposit by empoyer
ish gambhir
any notification or judgement in support, pl share
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute