Dear Experts,
Hello, I am here with another question and I am sure the Experts will help me this time too! The Director of my company, let's call him A, is also the director of another company, let's call it B. (BIG MAN!!!!!!) He holds a PF account in company B and is drawing a salary.
My Director is a generous man and did not take a single penny from Company A. Now he wants a salary. My question is: Is he eligible for PF in the second company? Can one have multiple PF accounts (in different companies) and if not, what should be his salary component?
Waiting for the earliest reply!
Thanks & Regards.
From India, Mumbai
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6Hello, I am here with another question and I am sure the Experts will help me this time too! The Director of my company, let's call him A, is also the director of another company, let's call it B. (BIG MAN!!!!!!) He holds a PF account in company B and is drawing a salary.
My Director is a generous man and did not take a single penny from Company A. Now he wants a salary. My question is: Is he eligible for PF in the second company? Can one have multiple PF accounts (in different companies) and if not, what should be his salary component?
Waiting for the earliest reply!
Thanks & Regards.
From India, Mumbai
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PF Eligibility and Multiple Accounts
PF is not mandatory from salary when the starting salary is more than ₹6,500 per month. From that angle, I guess he can be an exempt employee. However, the form clearly states that he must not have any other existing PF account, so probably he needs to be given PF.
I do not think there is any rule against holding multiple PF accounts if you are working for two different companies.
Regards
From India, Mumbai
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PF is not mandatory from salary when the starting salary is more than ₹6,500 per month. From that angle, I guess he can be an exempt employee. However, the form clearly states that he must not have any other existing PF account, so probably he needs to be given PF.
I do not think there is any rule against holding multiple PF accounts if you are working for two different companies.
Regards
From India, Mumbai
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Thank you for the reply. Just to clarify, can my Director have two PF accounts, one with Company A and the other with Company B? Also, is the maximum PF deduction from his salary 12% of the basic amount, and from the company's contribution, is it capped at Rs 780?
Thank you.
From India, Mumbai
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Thank you.
From India, Mumbai
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I do not classify myself as an expert. There are others in the forum who are far ahead of me. Yes, your director can have two PF accounts. PF contributions can be limited to ₹780 from both sides. If he wants, he can have PF deductions at 12% of his full salary. If the company wants, it can also give its contribution at 12% of the full salary (the choice is mutual).
From India, Mumbai
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From India, Mumbai
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PF Accounts Details.pdf
Salary Sheet & PF PT Calculation & Challan.xls
PF ON LEAVE SALARY.jpg