We all know that the contract workers' wages are increasing because of a hike in DA every six months. In our industry, we are covering all the contract workers under PF & ESI.
Query on PF Contributions
Is it the responsibility of the employer to pay PF contributions up to Rs. 6,500/-? We want to restrict the employer's contribution to Rs. 6,500/-. Can we restrict some of the contract workers' PF contributions to Rs. 6,500/- for those who will cross this in the near future, considering we are already paying PF contributions of more than Rs. 6,500/- to some other contract workers who are already drawing more than Rs. 6,500/-?
Kindly clarify.
Regards,
GIRI
From India, Hyderabad
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4Query on PF Contributions
Is it the responsibility of the employer to pay PF contributions up to Rs. 6,500/-? We want to restrict the employer's contribution to Rs. 6,500/-. Can we restrict some of the contract workers' PF contributions to Rs. 6,500/- for those who will cross this in the near future, considering we are already paying PF contributions of more than Rs. 6,500/- to some other contract workers who are already drawing more than Rs. 6,500/-?
Kindly clarify.
Regards,
GIRI
From India, Hyderabad
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Dear Giri, Once the contribution is started he will be also eligible for contribution after crossing the 6500. Regards Nitesh Prajapati
From India, Surat
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From India, Surat
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You can restrict PF contribution to 12% of Rs 6500 until it is not revised by EP qualifying salary for different people. PF authorities cannot say that if you are contributing on a higher salary with respect to some, you cannot restrict it to 12% on 6500 with others because it is purely a prerogative of the employer to contribute on any amount over Rs 6500 and is often considered as per the contract of employment. The PF cannot demand a single pie more than what is calculated on 6500.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Coverage of construction & contact workers under PF 22.1.2015.pdf
PF coverage for temp workers.jpg