Calculation Of EPF Accumulations After 7-A Orders Under EPF Act 1952

Regional Provident Fund Commissioner Under section 7-A ordered on 26/09/2011 that I shall be member of EPF from November 1985 .
My establishment firstly deducted my CPF from May 1994 and was illegally depositing in a saving Bank Account of Nationalized bank.
Please Guide
1. IN How much time my accounts to be opened by PF Office.
2.What will be the procedure of all this process?
3. What documentary formalities to be completed by the PF department?
4. What efforts I have to make to complete such process?
5. How PF accumulation will be calculated?
6. What will be the status of Employee share for the period during which my EPF was not deducted ?
please guide any thing more important
an early reply will really help me

If you have been working with the establishment since Nov 1985, you are covered since then. That is why the PF Organisation has ordered so. A 7 A order is issued after verifying the records submitted by the company. When you say that your PF has been deducted since may 1994, I can understand that the company has started deducting Pf only since May 1994. But instead of depositing in PF they deposited in SB account with a bank and that is illegal and that need not be money owned by or due to you.

Now coming to the 7A enquiry order, the order itself should have mentioned what will be the amount payable by the company towards contribution. The contribution will be worked out from Nov 1984 at the rate of 12% of your salary which can be subjected to a ceiling of Rs 6500 (that means a maximum contribution of Rs 780 per month) and 3.67% of employer's contribution towards Pf and 8.33% of employer's contribution towards Pension Fund. In addition there will be charges like administration charges and EDLI which are payable only by the employer.

Now let me answer your questions.

1. Once the order is issued your PF account is opened because it will not involve any procedure. Only thing is that your employer should remit the amount due as per the 7A order.

2. Procedure is to ensure that your PF registration cum nomination form (form 2) is sent to PF by the employer, if not sent earlier. I am sure the employer would not have sent it. Had it been sent they would not have deposited the amounts in SB A/c.

3. PF department may have their own formalities about which we need not worry. Once they get the forms above mentioned and amounts, they will credit the amounts in your account.

4. In order to make the process fast, you have to compel the company HR department.

5. PF accumulation will be as per amounts deducted and deposited plus interest. Take the month wise figure and work it out. Leave the interest part so that you will get an idea. As stated earlier, the total sum payable will be there in the 7A order itself.

6. The PF share of employee which were not deducted should also be payable by the employer. It is not due to any fault on the part of employee that the amounts were not deducted. Therefore, if an employee is to be covered from an earlier date, the employee's share should also be borne by the employer.

Regards,

Madhu.T.K

Dear Madhu Sir,

Thanks for very detailed and valuable information.

The order was passed on 26/09/2011 . PF authorities took no action but when I started requesting them for action . Asst. PF Commissioner wrote to the establishment on 22/02/2012.

He wrote" you are requested to submit the yearwise form 3-A/6-A in respect of employees whose memebership has been decided by worthy RPFC vide order----------------------- dated 26/09/2011 within 15 days of receipt of this letter. So that annual accounts may be updated"

Establishment says they will prepare 3-A /6-A from May 1994 only and not for the previous period.

Please guide is it ok?

In RTI mannual OF EPF INDIA it is written

"To ensure prompt action in collecting the Form 12A through Enforcement Officer, after

15 days of issue of 7A orders letter to banker should be sent under Sec.8F wherever

due."

Is 12-A is very important and needs immediate attention.

Please guide further because establishment will definitely try to something wrong to avoid financial liability in contribution as well as in interest and penality.

can you please provide me some judgements for the "The PF share of employee which were not deducted should also be payable by the employer"

Thanks and regards

Please help

thanks once again

Dear Madhu sir,
is their any clause in pf,that one of our new employee is not joining PF membership.what should we advise him

Dear Sir,
Please check. It may be General Provident Fund they are depositing in Bank.
Regarding EPF, you co. have to get Code No. and remit regularly in Bank through P.F. Challans
every month.
Please consult your area P.F. Enforcement Officer, he will guide you and assist you.
D.Gurumurthy
HR/IR Consultant

When the order passed by the EPF Organisation says that the establishment should pay the amount and send the form 3A (individual account of amounts remitted) and form 6A (annual return of contribution) from 1984, how can the company say that they will do it from 1994 only. If they have any objection they should file a review petition under section 7B. In the absence of any review going on, the demand by the PF will be maintainable. Besides the amount as per order, the employer will is liable to pay interest as per 7Q and damages as per 14B of the Act.

Section 8F deals with recovery of amount due from an employer. Form 12A is a monthly return which the employer is expected to file every month consolidating the total wages paid/ payable during the month, total contribution due in the month, paid in the month etc. If the establishment has not been filing form 12A for the preceding months, the same are required to fix the total sums due. For an individual case (like that of your's form 3A is important)

There are some cases in which it was decided that where the employer had failed to comply with the provisions of the Act and subsequently employees were covered with retrospective date, the amounts payable by the employees were made payable by the employer. I will trace it out later.

The matter being an issue by EPFO and your employer, it would take its own course of time to settle. Therefore, wait and see. Keep posting the progress of the case.

Regards,

Madhu.T.K

Dear Sir,
Thanks for valuable guidance again.I am really obliged.
Sir, Whether the rate of contribution changed from 10% to 12% on an amendment on 22/09/1997?
or it was 12% and was changed to 10% for few classes/categories.

Can We calculate contributions in 3-A our selves and send copy to EPF Department so that establishment may not do any miscalculation and epf department can verify our claim too.
Please advice and I will keep posting progress in the case
Thanks and regards

the Rte of contribution was last changed in 1995, I presume. 10% rate is still there but is applicable to industries which are declared as sick units.
3A is to be prepared by the company and sent to EPF. Since the 7A order contains the figures, no amounts less than waht are given in the order will be acceptable to the EPFO.
Regards,
Madhu.T.K

Dear Sir
Thanks for the valuable guidance.
Our 7-A orders do not mention the amount. It only mentions the dte of abbplicapbility . If u like I can mail you the copy of Order. Please mail me your Email ID at [Login to view] .
Thanks once again taking so much pain.
Regards
Rakesh Trikha

Dear Sir,
Please refer to previous conversation . APFC issued two notices to the establishment but establishment not submitting 3-A/6-A and always seeking time.
please guide what to do ?
APFC says more time will be given to them and he will issude prosecution notice.
What is that Prosecution notice?
Will it help us to get our EPF account opened?
It is very important to mention here that 7-A orders passed on 26/09/2011 i.e. more than 6 and a half months back and I am not able to get my EPF account number and No nomination forms i.e. 2-A is filled till date
Please guide further in this matter
thanks and reagards
Rakesh