I am the owner of a small manufacturing unit. Provident Fund Challenges
Provident Fund has been levied for the past 15 years. Earlier, I had a workforce of 15 laborers, including office staff. However, due to the recession and intense competition, along with some advancements in production, my workforce has now reduced to 7-8 laborers, including office staff, for the past 6-7 years.
Considering the inflation and higher standard of living, the laborers are now very reluctant to accept the deduction of P.F. and are arguing for the abolition of P.F. from the organization. Can you please guide me on this matter and help me terminate the P.F. from my organization?
From India, Akola
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2Provident Fund has been levied for the past 15 years. Earlier, I had a workforce of 15 laborers, including office staff. However, due to the recession and intense competition, along with some advancements in production, my workforce has now reduced to 7-8 laborers, including office staff, for the past 6-7 years.
Considering the inflation and higher standard of living, the laborers are now very reluctant to accept the deduction of P.F. and are arguing for the abolition of P.F. from the organization. Can you please guide me on this matter and help me terminate the P.F. from my organization?
From India, Akola
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Chirag Once PF act is applicable to your company then; even your strength get reduced below applicability strength you need to pay PF you cannot abolish it. Arun J.
From India, Hyderabad
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From India, Hyderabad
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Provident Fund Applicability for New Recruits
What if I have a newly recruited staff member with a salary above Rs. 10,000/- and they are requesting to avoid the option of Provident Fund (P.F.) since their pay is above Rs. 6,500/-? As per the law, it is provided that if the Basic + DA exceeds Rs. 6,500/-, then P.F. is applicable only after mutual consent of both the employer and the employee.
Regards
From India, Akola
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What if I have a newly recruited staff member with a salary above Rs. 10,000/- and they are requesting to avoid the option of Provident Fund (P.F.) since their pay is above Rs. 6,500/-? As per the law, it is provided that if the Basic + DA exceeds Rs. 6,500/-, then P.F. is applicable only after mutual consent of both the employer and the employee.
Regards
From India, Akola
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I agree with the comments provided by Arun J. Please note that you should only apply for the cancellation of PF registration with the PF Authorities if the company is completely shut down. However, you can avoid paying PF contributions for new employees joining now with a salary exceeding Rs 6,500 (Basic, DA, and Retention Allowance) per month.
Regards,
From India, Calcutta
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Regards,
From India, Calcutta
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I am in agreement with the comments given by Arun J. Please note that you will only apply for the cancellation of PF registration before the PF Authorities if the company is fully closed down. However, you may avoid paying PF contribution for a new employee joining now at a salary exceeding Rs 6,500/ (Basic, DA, and Retention Allowance) per month.
Even this could be avoided only for the next one month or so, by which time the amendment under issue of notification enhancing from 6500 to 15000/- would be brought to effect either in Sept. or Oct. '14.
Regards,
From India, Bangalore
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Even this could be avoided only for the next one month or so, by which time the amendment under issue of notification enhancing from 6500 to 15000/- would be brought to effect either in Sept. or Oct. '14.
Regards,
From India, Bangalore
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I agree with the submission of Mr. Majumdar, but don't forget to obtain a declaration in Form 11 that the new joiner was never a member of the EPF anywhere else. Also, please keep in mind the ongoing amendment of the ceiling limit, which is expected at Rs. 15,000, and you will not be able to decrease/restructure wages into allowances for reducing the EPF liability.
Regards,
P. K. Sharma
From India, Delhi
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Regards,
P. K. Sharma
From India, Delhi
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Provident Fund - Excluded Employee - Definition.pdf