Dear all, I want to know,if any candidate is hire only for 6 mths then whether the candidate is eligible for PF & bonus. Plz help me. Thanks, Smriti
From India, Pune
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From India, Pune
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He is eligiblae for PF, ESI from day 1 from his joining and for bonus, if has worked for 30 days in a year is eligible for bonus.
From India, Kota
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142From India, Kota
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yes Smiriti, he is eligible for PF from day 1 and eligible for bonus if has work for 30 days or more...
From India, Kota
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From India, Kota
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I agree with Mr. Amit; you should not reply if you are not aware of compliance. If no one has raised a question about you, then don't assume that you are right. Mr. Amit is professionally advising you that you are out of line as you lack knowledge of compliance. If you do have knowledge, then you should not provide incorrect answers to very basic questions. Please don't take it otherwise...
Clarification on PF Eligibility
Mr. Akki, when an employee leaves the organization before 6 months of working, they have no right to claim their PF amount. This is true, which I am referring to and will not explain again. So, you better stay calm. And yes, thanks for your kind effort, Mr. Akki...
Regards
From India
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Clarification on PF Eligibility
Mr. Akki, when an employee leaves the organization before 6 months of working, they have no right to claim their PF amount. This is true, which I am referring to and will not explain again. So, you better stay calm. And yes, thanks for your kind effort, Mr. Akki...
Regards
From India
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He /She can claim PF if employees leaves orgnaisation before 6 months in form 19 but he/she can not claim pension amount in form 10 C, please make a note mr. Arora.
From India, Kota
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From India, Kota
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If an employee leaves the organization before completing 6 months, will they be eligible to claim the contribution of the employer as well? Or do they have to stay back with their own contribution?
Regards,
Pramod
From India, New Delhi
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Regards,
Pramod
From India, New Delhi
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All, why we are considering only 6 months for the processing of PF withdrawal. can it be less or more than 6 months? New to the forum and Profession as well. Thanks
From India, New Delhi
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From India, New Delhi
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My friend was employed with a logistics company in Mumbai, and he has been denied the opportunity to claim the PF contribution by the employer as he left the job before completing 6 months. When he spoke to HR, she mentioned that he had not completed 3 months of employment, so he was not eligible for the employer's contribution to PF.
Eligibility for PF Contribution
Is it the right practice, or should my friend file a complaint against the company with the PF office? Please advise.
Thanks
From India, New Delhi
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Eligibility for PF Contribution
Is it the right practice, or should my friend file a complaint against the company with the PF office? Please advise.
Thanks
From India, New Delhi
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The PF and ESI apply from day one when an employee starts working and is eligible for a bonus by working a minimum of 30 days. Kindly try to resolve any issues, if any, rather than arguing about the same.
Best Regards,
Nidhin
HR Practitioner.
From Sweden, Örebro
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Best Regards,
Nidhin
HR Practitioner.
From Sweden, Örebro
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PF Compliance for Short-Term Employees
We are a small company that recently began contributing to the Provident Fund (PF) for our employees as we exceeded 20 employees. We were clearly informed that we must deposit the employer's contribution into the employees' PF account, even if an employee has worked for just one day, provided they are on the payroll and receive a salary for that day.
We encountered a situation where an employee left after a week. Our PF consultant suggested not showing this employee on our rolls and paying them in cash for the week to avoid paperwork, which is now partially online. However, we felt this was irregular and proceeded with all the PF formalities for just one week of salary.
The issue isn't the small amount required for the account but rather filing the PF returns correctly and on time, which is somewhat tedious and must be done online. It doesn't matter if the employee is not confirmed or eligible for leaves or bonuses as per company rules; PF is mandatory from day one, even for temporary employees. PF includes both employee and employer contributions, and there is no provision for waiving the employer's contribution. Even if we outsource some work at our office, it is our responsibility to ensure that the outsourcing vendor is paying PF for the work carried out at our premises by their employees.
Aside - let's all keep the language polite, professional, and to the point. What I have shared above is based on my own experience, and I could be mistaken.
Regards,
From India, Thana
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We are a small company that recently began contributing to the Provident Fund (PF) for our employees as we exceeded 20 employees. We were clearly informed that we must deposit the employer's contribution into the employees' PF account, even if an employee has worked for just one day, provided they are on the payroll and receive a salary for that day.
We encountered a situation where an employee left after a week. Our PF consultant suggested not showing this employee on our rolls and paying them in cash for the week to avoid paperwork, which is now partially online. However, we felt this was irregular and proceeded with all the PF formalities for just one week of salary.
The issue isn't the small amount required for the account but rather filing the PF returns correctly and on time, which is somewhat tedious and must be done online. It doesn't matter if the employee is not confirmed or eligible for leaves or bonuses as per company rules; PF is mandatory from day one, even for temporary employees. PF includes both employee and employer contributions, and there is no provision for waiving the employer's contribution. Even if we outsource some work at our office, it is our responsibility to ensure that the outsourcing vendor is paying PF for the work carried out at our premises by their employees.
Aside - let's all keep the language polite, professional, and to the point. What I have shared above is based on my own experience, and I could be mistaken.
Regards,
From India, Thana
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Yes, as shared by Amit, if a person joins as an employee on a permanent basis, they are eligible for PF from day one and eligible for a bonus if they work for more than 30 days in a financial year. Since you have no plans to hire a person on a long-term basis and visibility is only for 6 months, hire a person on a contractual basis for a fixed lump-sum amount per month.
Regards,
Sridhar B G
From India, Bangalore
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Regards,
Sridhar B G
From India, Bangalore
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Provident Fund (PF) Applicability
PF is applicable up to a Basic (+ DA) salary of Rs. 6,500/- per month. If it exceeds this amount, it is up to the employer to decide whether to include the employee under PF or not.
Bonus Eligibility
Bonus is paid to an employee who has successfully completed 30 days in an organization.
Employee State Insurance Corporation (ESIC) Applicability
ESIC is applicable up to a gross monthly salary of Rs. 15,000/-, subject to the ESIC scheme's applicability in that area.
Regards,
R P Singh
From India, Ambala
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PF is applicable up to a Basic (+ DA) salary of Rs. 6,500/- per month. If it exceeds this amount, it is up to the employer to decide whether to include the employee under PF or not.
Bonus Eligibility
Bonus is paid to an employee who has successfully completed 30 days in an organization.
Employee State Insurance Corporation (ESIC) Applicability
ESIC is applicable up to a gross monthly salary of Rs. 15,000/-, subject to the ESIC scheme's applicability in that area.
Regards,
R P Singh
From India, Ambala
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Thank you for your kind effort. However, Mr. Amit started pointing at me in such a harsh way, and I only replied in the same manner as I didn't do so intentionally.
Regarding the Concern About the Wrong Reply
I mentioned what I felt, i.e., I have observed in many organizations that when an employee leaves before 6 months, they may not receive their PF amount. This may not happen in all cases.
God bless.
Sorry from my side...
Regards
From India
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Regarding the Concern About the Wrong Reply
I mentioned what I felt, i.e., I have observed in many organizations that when an employee leaves before 6 months, they may not receive their PF amount. This may not happen in all cases.
God bless.
Sorry from my side...
Regards
From India
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Mrs Smriti, Candidate eligible for PF dues as per PF Commissioner of India, Amendment in 1995 and also company bonus. (As per company standing orders and rules) Regards (:) wilson
From India, Vadodara
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From India, Vadodara
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I request you to please understand that we shouldn't quarrel. Any employee who is hired for only six months is not eligible for PF; hence, their PF deduction will take place accordingly, e.g., basic <6500. However, if they leave the company, they have to fill out Form 13 to transfer their PF.
Bonus:
Yes, the employee is eligible to receive a bonus, but it should be according to the criteria of the Bonus Act.
From India, Mumbai
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Bonus:
Yes, the employee is eligible to receive a bonus, but it should be according to the criteria of the Bonus Act.
From India, Mumbai
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If we hire any person as a trainee or Management Trainee, they are covered under ESI, not PF, whether they are hired for 6 months or one year. If we hire any person as a probationary or permanent employee, they are covered under PF and ESI from the first day of joining.
From India
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From India
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Hi, We have manufacture unit we have ESI and PF kindly inform me how to calculate Bonus Regards Girish 9900872778
From India, Bangalore
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From India, Bangalore
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Understanding Employee Coverage and PF Eligibility
Please let us understand the concept very clearly:
• The coverage of an "Employee."
• There is no distinction between permanent, casual, part-time, temporary, working at home, or piece-rate workers (Baji Beedi Factory Vs. The Appellate Authority, 1998 LLR (Karnataka HC), etc.).
• No minimum working days are prescribed when a fresher joins an establishment; they are to be covered from day one on duty.
• Except on the first day of joining, his/her wages/salary is greater than Rs. 6,500.
• Claiming of PF comes second; this question arises later. There is no question about the claim when a person joins on the first day.
• Necessary declarations should be filed by the employer unless the "excluded employee" is involved (any failure is a punishable offense).
- (Exemption only applies if the individual is employed for a brief period in place of a regular employee who is on leave - Allahabad HC 1992-LLR 906).
Case Law:
Notification No. GSR. 689 dated 19.10.1990.
Orders of the Madhya Pradesh High Court validating the above Notification, which was upheld by the Supreme Court's order dated 17.4.1995 in J.P. Tobacco Products Vs. Union of India (1996 (1) LLJ 822 (SC)).
From India, Bangalore
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Please let us understand the concept very clearly:
• The coverage of an "Employee."
• There is no distinction between permanent, casual, part-time, temporary, working at home, or piece-rate workers (Baji Beedi Factory Vs. The Appellate Authority, 1998 LLR (Karnataka HC), etc.).
• No minimum working days are prescribed when a fresher joins an establishment; they are to be covered from day one on duty.
• Except on the first day of joining, his/her wages/salary is greater than Rs. 6,500.
• Claiming of PF comes second; this question arises later. There is no question about the claim when a person joins on the first day.
• Necessary declarations should be filed by the employer unless the "excluded employee" is involved (any failure is a punishable offense).
- (Exemption only applies if the individual is employed for a brief period in place of a regular employee who is on leave - Allahabad HC 1992-LLR 906).
Case Law:
Notification No. GSR. 689 dated 19.10.1990.
Orders of the Madhya Pradesh High Court validating the above Notification, which was upheld by the Supreme Court's order dated 17.4.1995 in J.P. Tobacco Products Vs. Union of India (1996 (1) LLJ 822 (SC)).
From India, Bangalore
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Hi, Is a trainee / or stipend worker eligible for ESIC & PF contribution? Please support with your views to clear the doubt.
From India, Delhi
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From India, Delhi
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On the 1st day, he is eligible for PF, ESIC, and bonus if an employee's wages/salary come under these statutory compliances.
Reference: https://www.citehr.com/412034-regard...#ixzz1x5doEBo6
From India, Gwalior
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Reference: https://www.citehr.com/412034-regard...#ixzz1x5doEBo6
From India, Gwalior
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The P.F. Act and Bonus Act are meant for the benefit of employees. Please follow the provisions as per the Acts.
Having worked for 6 months, he is entitled to P.F. (from day one of entry) as well as Bonus (having worked more than 30 days in the year).
Regards,
D. GURUMURTHY LL. HR & IR Consultant HYDERABAD
From India, Hyderabad
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Having worked for 6 months, he is entitled to P.F. (from day one of entry) as well as Bonus (having worked more than 30 days in the year).
Regards,
D. GURUMURTHY LL. HR & IR Consultant HYDERABAD
From India, Hyderabad
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I want to know if PF is applicable during the probation period as well.
Probation Period and PF Applicability
The probation period is essentially an observation period for individuals newly joining an organization, typically lasting 3, 6, or 12 months before confirmation in the position. During this period, the individual is entitled to a full salary and PF if the salary is less than 6500 Rs. After the completion of the probation period, the individual's service will be counted from the date of joining only.
Regards
From India, Bangalore
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Probation Period and PF Applicability
The probation period is essentially an observation period for individuals newly joining an organization, typically lasting 3, 6, or 12 months before confirmation in the position. During this period, the individual is entitled to a full salary and PF if the salary is less than 6500 Rs. After the completion of the probation period, the individual's service will be counted from the date of joining only.
Regards
From India, Bangalore
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Hi Smriti,
We would like to update you that company policy varies; it depends on the process that you follow. However, as far as PF and Bonus are concerned, we believe an individual should complete at least 1 year so that their performance can be measured. Based on their behavior, they should also be eligible for a bonus. Bonus and rewards will always help motivate employees, resulting in building trust between employees and the organization.
We don't see any reason to hold on to PF and Bonus if the employee completes at least a year.
Regards,
Imran Mansoori
Sr. Executive
HR Services
Ugam Solutions Pvt Ltd.
From India, Virar
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We would like to update you that company policy varies; it depends on the process that you follow. However, as far as PF and Bonus are concerned, we believe an individual should complete at least 1 year so that their performance can be measured. Based on their behavior, they should also be eligible for a bonus. Bonus and rewards will always help motivate employees, resulting in building trust between employees and the organization.
We don't see any reason to hold on to PF and Bonus if the employee completes at least a year.
Regards,
Imran Mansoori
Sr. Executive
HR Services
Ugam Solutions Pvt Ltd.
From India, Virar
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As per the PF and Bonus Act, the employee shall be covered with effect from their date of joining (DOJ). Bonus is payable only when the employee is in continuous service for 30 days, including public holidays and Sundays/weekly offs.
Regards,
Rizwan Sothe
From India, Mumbai
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Regards,
Rizwan Sothe
From India, Mumbai
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I want to know if an employee works for only three months and then leaves the job, can they claim for PF?
Regards,
Gufrankhan Pathan
From India, Mumbai
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Regards,
Gufrankhan Pathan
From India, Mumbai
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Dear Amit and Hitesh, this is not the "Akhada." Maintain the dignity of 'CITEHR.' We are professionals.
Eligibility for PF, ESIC, and Bonus
Dear Smriti, an employee is eligible for PF, ESIC (₹15,000 p/m or less), and bonus from the first day in the organization. However, if he/she leaves the organization before completing 6 months, he/she will not be eligible to withdraw his/her PF. If he/she completes a minimum of 6 months in any organization, then he/she can withdraw his/her PF. Moreover, after 6 months, if he/she joins another organization and continues with the old PF account, the PF will remain.
For a bonus, a minimum of 30 working days in a year is required for eligibility.
Thanks,
Rohit
From India, Indore
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Eligibility for PF, ESIC, and Bonus
Dear Smriti, an employee is eligible for PF, ESIC (₹15,000 p/m or less), and bonus from the first day in the organization. However, if he/she leaves the organization before completing 6 months, he/she will not be eligible to withdraw his/her PF. If he/she completes a minimum of 6 months in any organization, then he/she can withdraw his/her PF. Moreover, after 6 months, if he/she joins another organization and continues with the old PF account, the PF will remain.
For a bonus, a minimum of 30 working days in a year is required for eligibility.
Thanks,
Rohit
From India, Indore
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Eligibility for PF and ESI in Pvt. Ltd. Companies
As per norms, if the organization is a Pvt. Ltd. company, then any employee is eligible for PF and ESI right from the date of joining. Anyone against this is recommended to go through the norms and then post their thoughts here.
Regards,
Prashanth
From India, Hyderabad
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As per norms, if the organization is a Pvt. Ltd. company, then any employee is eligible for PF and ESI right from the date of joining. Anyone against this is recommended to go through the norms and then post their thoughts here.
Regards,
Prashanth
From India, Hyderabad
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