If the contractor engages a "Skilled Professional" with a salary of Rs. 12,000 per month, is the contractor required to deduct PF based on a ceiling of Rs. 6,500, or can he be exempted from PF deduction?
Regards,
Ankur
From India, Bharuch
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Regards,
Ankur
From India, Bharuch
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Dear Ankur , In this situation employee will choose regarding pf deduction on 12500 or 6500 or exempt from it but firstly we have to know that above 12500 is gross wages or Basic + DA
From India, Thana
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14From India, Thana
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Thanks Kishorji. Rs. 12,000/- is Basic + DA. However, in such case, if the enforcement authority pressurizes for PF compliance, is it legally tenable? Regards, Ankur
From India, Bharuch
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From India, Bharuch
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Dear Ankurji, Yes it is right and perfectly compliance under pf act.
From India, Thana
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From India, Thana
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As per the provisions of the Act, an employee drawing a salary (Basic + DA) over the basic exemption limit of Rs. 6,500 is excluded from the coverage of the Act, provided he is not a member of the fund. In other words, if he was not a PF account holder in any of his previous employments, then he need not comply with PF formalities in your establishment. However, for administrative compliance, you can take a declaration from the employee stating that he was not a member and that he is not willing to pay PF contribution.
Hope that helps!
From India, Pune
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Hope that helps!
From India, Pune
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Referring to my previous comment above, you are not liable to pay PF if you were not a member in your previous employment. However, you may opt for PF compliance on a basic amount of Rs. 6,500.
Under ESI, you are an exempted employee as your gross salary exceeds the maximum limit of Rs. 15,000. Hence, you are not liable to pay any ESI contribution.
Hope that helps!
From India, Pune
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Under ESI, you are an exempted employee as your gross salary exceeds the maximum limit of Rs. 15,000. Hence, you are not liable to pay any ESI contribution.
Hope that helps!
From India, Pune
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PF salab limit.pdf
ESI NOTIFICATION CEILING LIMIT 10000 TO 15000 w.e.f.1-05-2010 .doc