According to what I know, separate intimation to PF department is not necessary
Also, your consultant is right. You need to prepare for a 7A inquiry.
Keep all documents ready to be able to,show that you are in line with the law.
From India, Mumbai
2392Also, your consultant is right. You need to prepare for a 7A inquiry.
Keep all documents ready to be able to,show that you are in line with the law.
From India, Mumbai
No, what I wanted to share you was that when you show the contribution by employer in CTC, then it would become difficult for you to reverse it. I also agree that many employees (who are paid lesser salaries, in fact) do not wish to pay huge amounts towards Pf and other contributions but at the same time there are yet another majority who would like to get good amounts as accumulations. In short putting the basic salary or statutory salary at a lower level should not be taken as an employee friendly act but an attempt to reduce employer's burden of statutory contributions and payments like PF, ESI, Bonus, Gratuity etc. The concern of employees over their take home salary is just a wind screen!
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear Sirs,
A good and very useful discussion. Now a days employees are not interested about their savings and even not ready to join into the organizations when they found higher contributions wrt PF etc., Most of the people are interested on their take home, they are issuing a request letter to the management to restrict his PF contribution to 12% on Rs.6500/- only.
We have taken a legal opinion / consulted PF authorities, obtained individual request letters & submitted the xerox copies of the individual letters with a covering letter to the Regional Provident fund commissioner obtained acknowledgement and implemented.
We have both types of contribution modes in our organization 1) 12% on total basic & 2) 12% on Rs.6500/-. This is continuing since more than a year.
Thanks and regards - kamesh
From India, Hyderabad
A good and very useful discussion. Now a days employees are not interested about their savings and even not ready to join into the organizations when they found higher contributions wrt PF etc., Most of the people are interested on their take home, they are issuing a request letter to the management to restrict his PF contribution to 12% on Rs.6500/- only.
We have taken a legal opinion / consulted PF authorities, obtained individual request letters & submitted the xerox copies of the individual letters with a covering letter to the Regional Provident fund commissioner obtained acknowledgement and implemented.
We have both types of contribution modes in our organization 1) 12% on total basic & 2) 12% on Rs.6500/-. This is continuing since more than a year.
Thanks and regards - kamesh
From India, Hyderabad
As a policy Co can restrict its contribution on Rs 6500/-only.If any employee want to contribute on his salary above Rs 6500/- a joint request as per para 26(6) of the scheme. CTC in his appnt letter can be made accordingly.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
Varghese Mathew
9961266966
From India, Thiruvananthapuram
Hello,
There is indeed merit the in argument put forth by Madhu as well as Kamesh.
In our case, fixing salary for PF contribution at 6,500/- is definitely not a wind screen. We are paying 12% on FULL SALARY even today & have been paying it right from the date of coverage. We have a single consolidated salary, unlike many organisations with a low basic salary & all sorts of allowances.
The employee with the lowest as well as highest salary is agreeable to the change. We also have employees with high salary as well as low salary, who wish to remain in excluded category even after proposing to fix the limit at Rs. 6,500/-, though the organization is willing to cover them.
Also, there is a lot of merit in employees wanting to have maximum take home with minimum deductions. One of our empolyee simply told me, Sir, in order to reach retirement, I have 25 years to go. But we need to survive today to see retirement & who know what would be the REAL worth of that retirement corpus when I get it.
From India, Mumbai
There is indeed merit the in argument put forth by Madhu as well as Kamesh.
In our case, fixing salary for PF contribution at 6,500/- is definitely not a wind screen. We are paying 12% on FULL SALARY even today & have been paying it right from the date of coverage. We have a single consolidated salary, unlike many organisations with a low basic salary & all sorts of allowances.
The employee with the lowest as well as highest salary is agreeable to the change. We also have employees with high salary as well as low salary, who wish to remain in excluded category even after proposing to fix the limit at Rs. 6,500/-, though the organization is willing to cover them.
Also, there is a lot of merit in employees wanting to have maximum take home with minimum deductions. One of our empolyee simply told me, Sir, in order to reach retirement, I have 25 years to go. But we need to survive today to see retirement & who know what would be the REAL worth of that retirement corpus when I get it.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls
PF Contribution on Leave Encashment - Clarification by EPFO.pdf