Inquiry About PF Rules for New Hire
I am working as an HR professional in a private company and would like to inquire about the PF rules. I am currently in the process of hiring a new candidate for a managerial position, and he was receiving voluntary PF benefits in his previous organization. I would like to know if it is necessary to provide him with this benefit when he joins our organization. If not, what formalities need to be completed?
Regards,
Shruti
From India, Gurgaon
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1I am working as an HR professional in a private company and would like to inquire about the PF rules. I am currently in the process of hiring a new candidate for a managerial position, and he was receiving voluntary PF benefits in his previous organization. I would like to know if it is necessary to provide him with this benefit when he joins our organization. If not, what formalities need to be completed?
Regards,
Shruti
From India, Gurgaon
Acknowledge(1)Amend(0)
Salary Structures in Different Companies
Decade-old companies follow the gross salary basis similar to government organizations. They show employee contributions and treat employer contributions as liabilities, resembling voluntary PF.
On the other hand, newly started companies, such as those in the IT and ITES sectors, operate on a CTC basis. Here, both employee and employer contributions are calculated as part of the CTC salary. In this scenario, they perceive it not as a liability but as a cost incurred for that employee.
Therefore, it is essential to structure the salary in a way that includes the employer's contribution separately. Failing to do so could result in the employee receiving a lower take-home salary, potentially leading to disputes after receiving their first-month salary.
From India, Chennai
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Decade-old companies follow the gross salary basis similar to government organizations. They show employee contributions and treat employer contributions as liabilities, resembling voluntary PF.
On the other hand, newly started companies, such as those in the IT and ITES sectors, operate on a CTC basis. Here, both employee and employer contributions are calculated as part of the CTC salary. In this scenario, they perceive it not as a liability but as a cost incurred for that employee.
Therefore, it is essential to structure the salary in a way that includes the employer's contribution separately. Failing to do so could result in the employee receiving a lower take-home salary, potentially leading to disputes after receiving their first-month salary.
From India, Chennai
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Employer-PF-res trict to wages of Rs 6500.pdf
1. FLOW CHART OF SALARY STRUCTURING AND GRADATION.xls