PF deduction

[renukameera91]

Dear Friends,

 

Some of our employees drawing more than Rs.15,000/- requesting in writing not deduct any amount for PF contribution and they are not willing to add their name in this contributory fund. Shall we show the salary paid in full without deducting PF contribution. Is it legally valid transaction?.  Or in future this will  create any litigation between the Company and PF authorities?.

 

Thanks & Regards,

 

C.Renuka

[N G Omkar]

Dear Ms. Renuka,

I presume that the employees you are referring are not "International workers". With this presumption, my views are as follows:

Under Section 5 of the Employees’ Provident Funds and Miscellaneous Provisions Act,1952, the Central Government has notified the Employees’ Provident Funds Scheme, 1952 for establishment of provident funds under the Act.

As per Para 26 of the Employees Provident Funds Scheme, 1952 “Every employee, other than an excluded employee, employed in any establishment to which this Scheme is applicable shall be entitled and required to become a member of the fund”.

As per Para 2(f) of the Scheme, "Excluded employee means an employee whose pay at the time he is entitled to become member of the Fund exceeds Rs. 6,500/- (Rupees Six thousand Five hundred only) per month.

So, it appears that there is no mandatory/legal obligation on the employee to become member of the fund and to contribute to the Provident Fund where employees’ monthly pay exceeds Rs. 6,500/- (Rupees Six thousand Five hundred only).

However, practically I have not come across, such situation where only few employees opt not to get covered under PF. I request learned members to through some light on this!

Regards...Omkar

renukameera91 <renuka...@gmail.com> Sent by: csmy...@googlegroups.com 18/04/2011 10:58 AM Please respond to csmy...@googlegroups.com

To csmy...@googlegroups.com cc Subject [CSMysore] PF deduction

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[RAJESH BHAT]

Dear ms Renuka

 

Salary for the purpose of Pf meanse not whole salary salary = Basic +Da if any. It exceeds Rs.6500 then those persons may opt Pf otherwise PF is mandatory

--
With Regards
Rajesh Bhat

+91 9379187267

[Bidu Bhusan Dash]

1. If Basic salary + DA is Rs.15000/- or less , then both PF and ESI will be deducted

2. If   Basic salary + DA is more than Rs.15000/-  , ESI will not be deducted

PF @ 12%  pm and ESI @ 1.75%   pm of the Basic salary  

Please correct me if Iam wrong

--
Bidu Bhusan Dash
Company Secretary

[Mohan B K bk]

Dear Bidu

 

can you please mantion the provision where PF is  required to be deducted if Basic + Da is 15,000 or less.

To my understanding PF is applicable to employees whose Basic + DA is Rs.6,500 or less. In case if the provision has been amended pl let me know the date of amendment.

Regards

Mohan

[Ganesha K]

Hello,

Under Provident Fund (Mis) Rules say that,

If your salary Basic + DA exceeds Rs.6500/- it is optional for Management to deduct PF from their salary,

ESI will be deducted if your gross earnings upto 15000/- pm if it exceeds Rs.15000/- no ESI will be deducted.



On Thu, 21 Apr 2011 15:47:55 +0530 wrote

>Dear Bidu
 
can you please mantion the provision where PF is  required to be deducted if Basic + Da is 15,000 or less.
To my understanding PF is applicable to employees whose Basic + DA is Rs.6,500 or less. In case if the provision has been amended pl let me know the date of amendment.
Regards
Mohan

On Thu, Apr 21, 2011 at 2:36 PM, Bidu Bhusan Dash wrote:


1. If Basic salary + DA is Rs.15000/- or less , then both PF and ESI will be deducted
2. If   Basic salary + DA is more than Rs.15000/-  , ESI will not be deducted


PF @ 12%  pm and ESI @ 1.75%   pm of the Basic salary  




Please correct me if Iam wrong





--
Bidu Bhusan Dash
Company Secretary





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Thanking you,

Yours faithfully,

Ganesha K
Dubai
00971502840154

[Bidu Bhusan Dash]

Dear Mr. Mohan

I was wrong in my earlier posting, but I agree with Mr. Ganesha

Regards
Bidu

[deepak gupta]

 

 

Totally agreed with Mr. Ganesha

 

In case salary is more than Rs 6500, PF deduction is optional.

 

 

 

--

Regards,

 

Deepak Gupta

ACA, ACS, B.Com(H)

 

 

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