If A Daily Wage Worker Got 17000/- Wage In First Month Of His Employment Does His Full Share Go To PFFund, He Is Not Eligible For Pension

if a daily wage worker got 17000/- wage in first month of his employment does his full share go to PF Fund, He is not eligible for pension fund.
Any body can give a perfect answer for this

Hi
Am working as HR in a pvt firm in Tamil nadu. I would like to know the calculation professional tax. in our organisation we got about 230 employees. Can we deduct PT every month. Also want to know whether the amount can be paid to GOVT every six months. or is there any rules that the amount should not be kept with the employer for 6 months.
Regards
Rajeswari.B

Yes,
As per the new amendment in the EPF act in September 2014, if any employee salary, who was not previously covered under EPF, is more than Rs. 15000 then his whole contribution will go to PF account only.. No contribution will be made towards EPS..
Regards
Dinesh Kumar

But the said Worker is working under Piece Rate System , he may get less than 15000/- in the second month or may not get more than 15000/- till the date of retirement , then is it correct method to take full amount of first month to PF account only ?

If he is not an existing member ( an employee who joins your establishment after leaving an employment where he was a member of PF but before withdrawing his PF accumulations) why should you cover him under PF. If your company policy says that every one irrespective of salary should be covered, then it is okay but if you do not give PF to all employees and when there is a ceiling put on employer's contribution to PF contribution, it is advisable not to cover an employee whose wages is more than Rs 15000.

Now, in the case of piece rate wages, since there can be a month in which his wages may come down and he would be under PF coverage anyway, then cover him with with a wages of not exceeding Rs 15000 so that there will be contribution towards Pension fund also. The Act does not make it mandatory that Pf should be contributed on the entire amount earned but it can be restricted to the prescribed percentage (12%) of Rs 15000. Therefore, even if the wages is Rs 17000, you can deduct PF on Rs 15000 and contribute employer's share to PF as well as Pension Fund.

Madhu.T.K

Please obtain Form # 11(New) from the Employees at the time of joining your establishment..Based on the information furnished therein, Coverage/Exclusion under EPF/EPS should be made after application of mind.
Have you engaged Piece Rate Employee on your Rolls directly or through Contractor?What are the terms & Conditions of Appointment
PF coverage is on Fixed Basic/DA/VDA Per Month

1) Appointed Directly
2) Wages Paid - Piece Rate
3) Form 11 status fresh employment
4) With Daily Minimum Wages

piece rate system of payment or lump sum monthly salary system does not have any bearing on PF. PF act speaks of wages only.