Greetings
If the wages / Pay sheet of the Contractor workmen reflects the PF in the Actual Basic Pay i.e., 870/- (12%), obviously the Ee PF Contribution must be deposited as Rs.870/- and EPS Rs.541/- and Er PF Rs.329/- and Rs.19/- (1.1%) EPF Admin Charges to be paid as must be remitted in PF Part and the EDLI Can be paid for the Basic of Rs.6500/- i.e., Rs.33/- as EDLI (0.5%) and charges for EDLI Rs.0.65/- (0.01%).
If the contractor is claiming the full after depositing the partial, then you need not to pay the full.
As a matter of fact, the Er PF part is normally a reimbursement and not paid in advance. Please check the LOI issued to the contractor and act accordingly.
From India, Kumbakonam
1166If the wages / Pay sheet of the Contractor workmen reflects the PF in the Actual Basic Pay i.e., 870/- (12%), obviously the Ee PF Contribution must be deposited as Rs.870/- and EPS Rs.541/- and Er PF Rs.329/- and Rs.19/- (1.1%) EPF Admin Charges to be paid as must be remitted in PF Part and the EDLI Can be paid for the Basic of Rs.6500/- i.e., Rs.33/- as EDLI (0.5%) and charges for EDLI Rs.0.65/- (0.01%).
If the contractor is claiming the full after depositing the partial, then you need not to pay the full.
As a matter of fact, the Er PF part is normally a reimbursement and not paid in advance. Please check the LOI issued to the contractor and act accordingly.
From India, Kumbakonam
Thanks.
my contractor is employing only five workers whose basic salary is less than 6500 rs per months. Is it compulsory to deduct pf?. pf authority is not allotting pf code because contractor is employing less than 20 workers pl. guide me on this
From India, Surat
my contractor is employing only five workers whose basic salary is less than 6500 rs per months. Is it compulsory to deduct pf?. pf authority is not allotting pf code because contractor is employing less than 20 workers pl. guide me on this
From India, Surat
If your contractor is unable to register his establishment for PF, then it is the responsibility of the Principal Employer (You), to deduct from the bills of the contractor and remit the same in your code as the responsibility of compliance lies with the Principal Employer. As per the Work Order the deduction of Employee and Employer PF contribution will be decided.
From India, Kumbakonam
From India, Kumbakonam
Let me know your organization have only one contractor ?
if more than one, the other contractor have PF code no. you can avail that code no. to pay this Contractors PF in to that.
if the Contractor paying is PF liability to another contractor, who is doing works in your premises, undertake a letter from both the contractors for the same
No right to contract workmen for claim permanent job, eventough PF contribution paid thru PE PF code No.
V K Rao
From India, Guntur
if more than one, the other contractor have PF code no. you can avail that code no. to pay this Contractors PF in to that.
if the Contractor paying is PF liability to another contractor, who is doing works in your premises, undertake a letter from both the contractors for the same
No right to contract workmen for claim permanent job, eventough PF contribution paid thru PE PF code No.
V K Rao
From India, Guntur
Dear
As you said your "Contractor is paying salary to his employees and my company is reimbursing the same with employer PF and commission on wages." thats means your company is reimbursing 13.61% to the contractor. If your contractor is deducting 12% on RS. 7254/- i.e. RS. 870/- and depositing only 12% on Rs. 6500/- i.e. Rs. 780/- only that means he is doing fraud of Rs.90/- from Employee's shares.
Similarly your company is reimbursing 13.61% on Rs. 7254/- i.e. 987 but only depositing 13.61% on Rs.6500/- i.e.885/- means fraud of Rs.102/-
So in total he is drawing Rs. 90+Rs.102 = Rs. 192/- per head on A/c of PF (excluding profit)
As per PF Act, only 8.33% (employer's share) of Rs. 6500/- i.e. Rs. 541/-goes to Pension Scheme and the rest amount goes to Provident Fund even if the Wages of the employees goes above Rs.6500/-. In your case it is Rs. 7254/ (Employee's total share of 12% i.e Rs. 987/- will go to PF and from Employer's share of 12% only Rs. 541 will go to Pension scheme and the rest Rs. 446/- will go to PF).
Thanks & Regards
From India, Dhanbad
As you said your "Contractor is paying salary to his employees and my company is reimbursing the same with employer PF and commission on wages." thats means your company is reimbursing 13.61% to the contractor. If your contractor is deducting 12% on RS. 7254/- i.e. RS. 870/- and depositing only 12% on Rs. 6500/- i.e. Rs. 780/- only that means he is doing fraud of Rs.90/- from Employee's shares.
Similarly your company is reimbursing 13.61% on Rs. 7254/- i.e. 987 but only depositing 13.61% on Rs.6500/- i.e.885/- means fraud of Rs.102/-
So in total he is drawing Rs. 90+Rs.102 = Rs. 192/- per head on A/c of PF (excluding profit)
As per PF Act, only 8.33% (employer's share) of Rs. 6500/- i.e. Rs. 541/-goes to Pension Scheme and the rest amount goes to Provident Fund even if the Wages of the employees goes above Rs.6500/-. In your case it is Rs. 7254/ (Employee's total share of 12% i.e Rs. 987/- will go to PF and from Employer's share of 12% only Rs. 541 will go to Pension scheme and the rest Rs. 446/- will go to PF).
Thanks & Regards
From India, Dhanbad
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