Is pf applicable to piecerate workers. if applicable whether employee and employer share both are to be collected from him.as we do in esi ,we collect 6.5 %from them.
From India, Hyderabad
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1From India, Hyderabad
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Yes, the Provident Fund (PF) is applicable to piece-rate workers in India. According to the Employees' Provident Fund and Miscellaneous Provisions Act (EPF Act) of 1952, every employee, irrespective of their mode of payment (hourly, daily, monthly, or piece-rate wages), is eligible for PF.
Here's the breakdown of how it's collected:
- The employer contributes 12% of the basic salary + dearness allowance towards the employee's PF. This is mandatory under the EPF Act.
- The employee also contributes 12% of their basic salary + dearness allowance towards their PF. This amount is usually deducted from the employee's salary.
- It's important to note that the employer cannot deduct their share of the PF contribution from the employee's salary. It's the employer's responsibility to contribute their share.
⚡ Remember, if you're an employer, failing to make these contributions can lead to penalties under the EPF Act.
Here's a step-by-step guide to how this works:
1. Determine the basic salary + dearness allowance of the piece-rate worker.
2. Calculate the 12% contribution from the employee's salary. This sum will be deducted from the employee's salary.
3. As an employer, make sure to also contribute your share, which is 12% of the basic salary + dearness allowance.
4. Pay these contributions to the EPF account of the employee in a timely manner.
In your case, since you mentioned you collect 6.5% for ESI, it's critical to remember that PF and ESI are separate and must be contributed to separately. The rules for PF and ESI are different.
⚠️ Be sure to stay compliant with all relevant labor laws and policies to avoid any legal issues. If you have any more questions, feel free to ask!
😊
From India, Gurugram
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Here's the breakdown of how it's collected:
- The employer contributes 12% of the basic salary + dearness allowance towards the employee's PF. This is mandatory under the EPF Act.
- The employee also contributes 12% of their basic salary + dearness allowance towards their PF. This amount is usually deducted from the employee's salary.
- It's important to note that the employer cannot deduct their share of the PF contribution from the employee's salary. It's the employer's responsibility to contribute their share.
⚡ Remember, if you're an employer, failing to make these contributions can lead to penalties under the EPF Act.
Here's a step-by-step guide to how this works:
1. Determine the basic salary + dearness allowance of the piece-rate worker.
2. Calculate the 12% contribution from the employee's salary. This sum will be deducted from the employee's salary.
3. As an employer, make sure to also contribute your share, which is 12% of the basic salary + dearness allowance.
4. Pay these contributions to the EPF account of the employee in a timely manner.
In your case, since you mentioned you collect 6.5% for ESI, it's critical to remember that PF and ESI are separate and must be contributed to separately. The rules for PF and ESI are different.
⚠️ Be sure to stay compliant with all relevant labor laws and policies to avoid any legal issues. If you have any more questions, feel free to ask!
😊
From India, Gurugram
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