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Adv.Shine Thomas (Advocate)     11 October 2008

Provident Fund

Please help me

The provident fund office communicated to an educational institution to pay 10% of the wages of the employees and employer when the total number of employees were below 20 in the year 2003. The strength of the employees later became more than 20, but the school authorities continued to pay the 10% of salary instead of 12%, which is the statutory limit. Now the inspectors found the mistake after these years and to direct the school authorities to pay the arrears of extra 2%, which now come more than 2 lakhs.But the problem is that many number of employees are releaved from the school and joined in other institutions and hence cannot get money from them.

How can the school authorities be saved from paying the extra 2% ? Any case laws?, Any rulings from any courts or tribunals in favour of the institution.



Learning

 13 Replies

H. S. Thukral (Lawyer)     14 October 2008

In my opinion the employer has to shell out the employees' share also if recoveries are to be made from him by PF office. There is I think  a provision in the Act itself . I will check up if it can be supported by any case law.

Saravana Rajan   14 October 2008

Even we come across the same in manufacturing establishments where the authorities direct us to pay the contribution for those who had already left the organisation after serving a very short tenure.


I am also looking for some case laws in this regard. I fail to understand this,  if the organisations pay employers` contribution, how can they recover employees` contribution (that too from those who are no more in service)?


Even if both the contributions are paid by the employer (in case of the amount being little) will it really benefit the covered employees??


-Saravana Rajan.

Sankaranarayanan (Advocate)     14 October 2008

hi ,


in this matter i need some clarification abt how much amount the employer detect form the employee from their salary. second thing even this dispute is pending, then when the case is clear , till such date all employee get interest for the same.plz send me the full details then i will give the details if any


 

Adv.Shine Thomas (Advocate)     14 October 2008

Employer collected only 10% from the employees and paid the same also. Now the additional amount to be paid will come around 50,000/-. That ,the unaided school cannot afford.

Sankaranarayanan (Advocate)     15 October 2008

is any inspection held by pf enforcement official.how they paid the 10% amount


how long they paid like, every year they submitt form 6 and 3 a , too and is they got they form 23a , for it. along with that slip any notice served?


u give the details then only can suggest the way


 

A.R.KUPPUSAMI (ADVOCATE)     15 October 2008

EPF deductions purely made out from the employees salary- salary / wages defined as is  Basic and DA only. The EPF contribution 12% to be collected from the employees weekly / monthly salary  the amount to be remitted along with employer's share 13.61% account wise at the nearest SBI Branch before the 15th day of the following month. The paid challan should be forwarded to EPF office along with form-12A every month. Form-3A and Form-6A to be submitted(annual return) every end of financial year. The EPF authority will compile with the payment details and issue the individuals Form-23 slip after reaching the finality of payment and each employees  accumulations tallied with.

Sankaranarayanan (Advocate)     15 October 2008

sir




 


no one ask that sir, he asked the % is 12 instead of that % the employer detected 10 % and and paid the same. the epf forced the employor  to  pay the arrier amount. 

Pragadeesh (Lawyer/Factory certification consultant/Cyber crime Analyst)     17 October 2008

According to me the employer has to pay the arrears for the existing employees and can recover from them (seperate agreement).no need to pay arrears for the employees left.


But he has to pay some penalty for breach of law.


iam not sure this is my opinion


pragadeesh

Lalita More (service)     27 January 2009

sir,


please guide me regarding pf challan account no i,2,10,21,22


regards,

PBS KUMAR (HR - PROFESSIONAL)     30 January 2009

Dear Lalita More ji,


Regarding PF challans the calculation as under;


Challan No. 1 - 12% + 3.67% = on Basic + DA


Challan No. 10 - 8.33% = on Basic + DA


Challan No. 02 - 1.10% = Total wages


Challan No. 21 - 0.5% = Total wages


Challan No. 22 - 0.01% = Total wages


Regards,


PBS KUMAR


 


 


 

Somnath Maharnavar (Service)     07 February 2009


Dear All




 


Regarding PF challans the calculation as under;




 


Account No. 1 - 12% + 3.67% = on Basic + DA


Account  No. 02 - 1.10% = on Basic + DA


Account  No. 10 - 8.33% = on Basic + DA




Account  No. 21 - 0.5% = on Basic + DA




Account  No. 22 - 0.01% = Total wages




 


Regards,


Somnath

 

hiren chheda (LABOUR LAW ADVISOR)     05 March 2009

Hi


Since the employees have left the employement then authorities are not enpowered to assess the contributions iro left employees since they are not the member of the scheme and pf office have refunded their pf dues as per the returns filed ie 10% Hence you are require to pay in respect of present employees and appeal for the waiver of the employees contributions as the mistake is bonafied.


HIREN CHHEDA


09821078457

Sudhir Kumar, Advocate (Advocate)     19 November 2011

You are right.  They have no choice.  It was their fault that they did not make correctr recovery when the employess were in service.  Rather they should be thankful that the PF authorities are alwaya negligent that they do not check the wages report scholls give to the education deptt.  They  generally report to education department that they are paying Rs 10/- actually paring rs 4.5 to employees and paying PF only for 2.5. They should keep mum and deposit dues as assesed.


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