Dear all, Can anybody tell me that any recent amendments have come in PF rules? regards, Aparna
From India, Mumbai
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From India, Mumbai
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Hi Aparna,
As such, there have been no recent amendments in PF rules. However, there was one amendment many months back; I don't remember the exact timing. The change was that now Leave Encashment will also fall under PF. Both the employer and employee have to contribute from the amount of leave encashment.
Amit Goyal
From India, Delhi
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10As such, there have been no recent amendments in PF rules. However, there was one amendment many months back; I don't remember the exact timing. The change was that now Leave Encashment will also fall under PF. Both the employer and employee have to contribute from the amount of leave encashment.
Amit Goyal
From India, Delhi
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Hi Amit, This is somethibng new i am listning, but has industry started implementing the same, because i have not done anything as such in my company. Regards, Poonam
From India, Delhi
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From India, Delhi
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Hi Poonam,
All those who are aware of the amendment have implemented the same. In my current and previous companies, we were following it. Many other companies have implemented the same.
Amit Goyal
From India, Delhi
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All those who are aware of the amendment have implemented the same. In my current and previous companies, we were following it. Many other companies have implemented the same.
Amit Goyal
From India, Delhi
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Dear Friends , find attached the circular regarding the PF on PL Encashment. Rgds, Anju
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Hi to all, Amit is quiet right. You must deduct PF on leave encashment. Actually, rule exists from previously. But a case in supreme court made it clear. Regards Prashant Patil
From India, Nagpur
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From India, Nagpur
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Dear HR Fraternity,
As advised, there is an attraction of PF contribution in the leave encashment made to an existing employee annually. In the case of an employee leaving the services of the organization, there is no requirement for the deduction of EPF contribution in the leave wages settled along with other legal dues.
As per provisions of the Act, there is a mention that Leave Encashment paid at the time of separation of an employee doesn't deem to be considered as wages; hence, it doesn't attract EPF contribution. Other than this, the status of Rs. 6500/- as basic plus DA wage for coverage of an employee has not been amended.
Thanks with best regards,
N. Devarajan
HR Consultant
From India, Madras
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As advised, there is an attraction of PF contribution in the leave encashment made to an existing employee annually. In the case of an employee leaving the services of the organization, there is no requirement for the deduction of EPF contribution in the leave wages settled along with other legal dues.
As per provisions of the Act, there is a mention that Leave Encashment paid at the time of separation of an employee doesn't deem to be considered as wages; hence, it doesn't attract EPF contribution. Other than this, the status of Rs. 6500/- as basic plus DA wage for coverage of an employee has not been amended.
Thanks with best regards,
N. Devarajan
HR Consultant
From India, Madras
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Dear Mr. Devarajan,
This is new to me. It will be great if you could provide us with the notification or the rules in the EPF Act. As per my understanding, leave encashment paid to an employee is to be taken as wages as per the Act.
Regards,
Suresh Ramalingam
From India, Mumbai
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This is new to me. It will be great if you could provide us with the notification or the rules in the EPF Act. As per my understanding, leave encashment paid to an employee is to be taken as wages as per the Act.
Regards,
Suresh Ramalingam
From India, Mumbai
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Mr. Suresh Ramalingam I will sent you the details through scan image provided if you give me your e mail id. Regards N.Devarajan.
From India, Madras
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From India, Madras
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Hi, Can you please provide the notification to support saying that at the time of seperation PF deduction is not required from Leave Encashment. Thanks, Alka Mahendru, HR-Chandigarh.
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Hi All/Mr. N. Devrajan,
Kindly let me know if leave encashment is a necessary payment that should be made to all employees. If a certain company doesn't provide the leave encashment benefit but allows employees to avail all leaves in a particular financial year, with any unused leaves subject to lapsing, is it legal and acceptable? Kindly shed light on this matter.
Regards,
Parul
From India, Delhi
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Kindly let me know if leave encashment is a necessary payment that should be made to all employees. If a certain company doesn't provide the leave encashment benefit but allows employees to avail all leaves in a particular financial year, with any unused leaves subject to lapsing, is it legal and acceptable? Kindly shed light on this matter.
Regards,
Parul
From India, Delhi
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Hi,
As per my knowledge, the government has decided to void all excluded trusts. All trusts that do not have the EPS scheme must register with the RPFC for the EPS scheme. Exempted trusts will remain the same; there are no changes. For any further clarification, you can email me at navpreetbansal@yahoo.com.
Regards, Navpreet Bansal
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As per my knowledge, the government has decided to void all excluded trusts. All trusts that do not have the EPS scheme must register with the RPFC for the EPS scheme. Exempted trusts will remain the same; there are no changes. For any further clarification, you can email me at navpreetbansal@yahoo.com.
Regards, Navpreet Bansal
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Hi,
Is this applicable to a company that is exempt from PF because all the employees have a basic salary above 10,000, but the employer has a PF trust to establish an employee welfare scheme and provide them with tax shelter? I was informed that we do not have to worry.
Regards,
Radhika
From India, Bangalore
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Is this applicable to a company that is exempt from PF because all the employees have a basic salary above 10,000, but the employer has a PF trust to establish an employee welfare scheme and provide them with tax shelter? I was informed that we do not have to worry.
Regards,
Radhika
From India, Bangalore
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Dear Radhika,
If any company's all employees are getting more than 6500 salary (basic + DA) but there are more than 20 employees, it is still mandatory to have a PF establishment code registered with EPFO.
I think so. Isn't it?
Regards,
Prashant Patil
From India, Nagpur
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If any company's all employees are getting more than 6500 salary (basic + DA) but there are more than 20 employees, it is still mandatory to have a PF establishment code registered with EPFO.
I think so. Isn't it?
Regards,
Prashant Patil
From India, Nagpur
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Hi,
(Basic+DA) which exceeds Rs. 6,500/-, but in our case, all are above 10,000/-, and we have a private trust operated by a third party. We had made a PL encashment to employees last year but did not deduct PF on it. When I checked here, I was told that it is only for those companies for whom PF deduction is mandatory.
Regards,
Radhika
From India, Bangalore
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(Basic+DA) which exceeds Rs. 6,500/-, but in our case, all are above 10,000/-, and we have a private trust operated by a third party. We had made a PL encashment to employees last year but did not deduct PF on it. When I checked here, I was told that it is only for those companies for whom PF deduction is mandatory.
Regards,
Radhika
From India, Bangalore
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Hi Radhika,
First of all, please confirm whether your trust is established under EPFO (Employees' Provident Fund Organisation) or a private provident fund.
Secondly, if your establishment is covered under EPFO, there should be a deduction on leave encashment.
Thirdly, I want to reiterate that it is mandatory for an establishment (company) to register with EPFO if it has more than 20 employees.
Regards,
Prashant Patil
From India, Nagpur
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First of all, please confirm whether your trust is established under EPFO (Employees' Provident Fund Organisation) or a private provident fund.
Secondly, if your establishment is covered under EPFO, there should be a deduction on leave encashment.
Thirdly, I want to reiterate that it is mandatory for an establishment (company) to register with EPFO if it has more than 20 employees.
Regards,
Prashant Patil
From India, Nagpur
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Hi all,
There is no noteworthy amendment in the PF Act, but there is a proposal to withdraw the ceiling limit of Rs. 6,500/-, irrespective of the basic salary drawn by the employees.
Regards,
Michael Nicholas
From India, Madras
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There is no noteworthy amendment in the PF Act, but there is a proposal to withdraw the ceiling limit of Rs. 6,500/-, irrespective of the basic salary drawn by the employees.
Regards,
Michael Nicholas
From India, Madras
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Hi Radhika, Do your have company having more than 20 employees. & please if possible state your companys nature of business so I can tell you that something. Regards Prashant Patil -
From India, Nagpur
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From India, Nagpur
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I need to know that what is the limit to which PF deduction is essential, I think it is 7500 now need clarification. Regards, Saji :?:
From India, Gurgaon
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From India, Gurgaon
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Hi Saji, You are wrong. PF limit for deduction is still 6500. Dont confuse!! You might be heard of ESIC limit of 7500, it is also now 10,000 Regards Prashant Patil
From India, Nagpur
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From India, Nagpur
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As I read in TOI dt. 07.07.2008 that pf is applicable where 10 or more employee working which is earlier 20 or more.
From India, Gurgaon
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From India, Gurgaon
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As an article in TOI dt. 07.07.08 that pf is applicable those concern where 10 or more employee working where previously it was 20 or mor.kind information pelase.
From India, Gurgaon
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From India, Gurgaon
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The limit of minimum 20 persons has come down to 10 for getting PF registration. Notification is to be issued shortly.
From India, New Delhi
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From India, New Delhi
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Hi Amit Goyal,
One clarification - if leave encashment is being made after resignation and towards F&F, still PF to be deducted on final settlement. Final month salary PF deduction is okay on final settlement.
Regards,
Rsudhakar
From India, Madras
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One clarification - if leave encashment is being made after resignation and towards F&F, still PF to be deducted on final settlement. Final month salary PF deduction is okay on final settlement.
Regards,
Rsudhakar
From India, Madras
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Dear All,
Deduction of PF from leave encashment has been further amended. It is now optional. An employee can contribute to his PF from leave encashment, but for the employer, it is optional, meaning the employer may not contribute the matching amount. There is a Supreme Court judgment on this matter. One more amendment is in the pipeline in connection with the Investment Pattern of PF money of exempted trusts, which will be applicable to the exempted PF trusts only.
From India, Calcutta
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Deduction of PF from leave encashment has been further amended. It is now optional. An employee can contribute to his PF from leave encashment, but for the employer, it is optional, meaning the employer may not contribute the matching amount. There is a Supreme Court judgment on this matter. One more amendment is in the pipeline in connection with the Investment Pattern of PF money of exempted trusts, which will be applicable to the exempted PF trusts only.
From India, Calcutta
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Dear All, Can any body help me out the calculation of P.F on leave enchasement. As far as I know P.F is calculated on Basic+DA+Cash value of Food. Thanks Mayank 9868720068
From India, Delhi
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From India, Delhi
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Hi,
I remember that there was a post on our Cite HR forum stating that the Supreme Court ruled that the money received by an employee from encashing earned leave could not be considered as wages for the calculation of Provident Fund (PF) contributions.
Please search through our Cite HR for more information on this matter.
Regards,
erv
From India, Madras
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I remember that there was a post on our Cite HR forum stating that the Supreme Court ruled that the money received by an employee from encashing earned leave could not be considered as wages for the calculation of Provident Fund (PF) contributions.
Please search through our Cite HR for more information on this matter.
Regards,
erv
From India, Madras
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Hello sir,
Please clarify for me the definition of a dependent (Person) in the new amendment to the ESI Act. I am currently employed at Star Wire India Ltd. My boss has asked me this question, but I am not familiar with it. Kindly assist me in this matter.
Yours faithfully,
Naveen Kumar
Email: naveenkumarmsw@yahoo.com
From India, Faridabad
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Please clarify for me the definition of a dependent (Person) in the new amendment to the ESI Act. I am currently employed at Star Wire India Ltd. My boss has asked me this question, but I am not familiar with it. Kindly assist me in this matter.
Yours faithfully,
Naveen Kumar
Email: naveenkumarmsw@yahoo.com
From India, Faridabad
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Hello, sir,
I have 2.5 years of experience in P&A. Currently, I am working in an automobile company. However, I am now seeking a job change. If you have any requirements in P&A, please help me.
Naveen Kumar MSW
Email: naveenkumarmsw@yahoo.com
From India, Faridabad
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I have 2.5 years of experience in P&A. Currently, I am working in an automobile company. However, I am now seeking a job change. If you have any requirements in P&A, please help me.
Naveen Kumar MSW
Email: naveenkumarmsw@yahoo.com
From India, Faridabad
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Hi, I am looking forward to vendor empanelments... working with One Touch Solutions (BPO) as an HR. looking forward fo empannel vendors to my company. contact me at 9540803960 zama
From India, Delhi
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From India, Delhi
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Dear all,
This amendment is no longer valid. The Supreme Court gave a verdict quite some time back repealing the amendment regarding compulsory PF deduction on leave encashment. Therefore, there is no rule requiring employers to contribute to PF on leave encashment.
Kalyan Mitra
From India, Calcutta
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This amendment is no longer valid. The Supreme Court gave a verdict quite some time back repealing the amendment regarding compulsory PF deduction on leave encashment. Therefore, there is no rule requiring employers to contribute to PF on leave encashment.
Kalyan Mitra
From India, Calcutta
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc