Provident fund
Querist :
Anonymous
(Querist) 02 December 2011
This query is : Resolved
1. In One company there is 22 Employees out of them 5 employees are getting wages (Basic + DA)of Rs. 6500 and less while other are getting more than that. Now the question is that employees whose amount of wage(basic+DA) is more than Rs. 6500 and they are covered for PF than what will be the Amount of Contribution of Employer & Employee?
2. Second thing is that if employer cover the other employees under PF who is getting more than Rs. 6500 than is it mandatory that all other has to join for PF or it is their personal choice to join for PF? AND is it mandatory to Employer to join/cover all other under employees for PF.
Please clarify this is very sensitive case for me. Because to the extent i know about this is that employer has to compulsorily join to all other employees and employee can not be unwilling to join for PF.
Thanks
Sailesh Kumar Shah
(Expert) 02 December 2011
1.Cover under the act.
Amount of contribution as:-
Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments.
Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.
Establishments declared as sick undertakings by BIFR.
A matching contribution is to be collected from the emoluments of the employees.
Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards pension fund.
Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.
2. please clear little more.
you want to say that 1 or 2 out 5 employee?
Querist :
Anonymous
(Querist) 02 December 2011
Dear Shailesh Sir
Thanks for reply: I explained here more clearly as under:
My first query is for rate of contribution for remaining 17 employees, excepting first 5 who is already covered, whose pay is more than the basic limit for coverage under PF of e.g. Rs. 20,000, than what will be the exact amount of contribution of employer & employee?
Now for second query is also for those 17 employees whose pay is of Rs. 20,000 that: is it mandatory for this 17 employees to join for PF if any of them (i.e. of 17) is joined under PF or is it their personal choice to join for the PF or not?
AND is it mandatory to Employer to join/cover all other under employees for PF.
I am requesting other experts also, please reply because this is most urgent for me.
Thanks
Querist :
Anonymous
(Querist) 05 December 2011
How Strange and this is unbelievable that not any single person or an expert wants and interested to solve the query of Provident Fund, posted on 2nd Dec.
Many Many Thanks to all Professionals and Experts and other members of Lawyers Club.
prabhakar singh
(Expert) 06 December 2011
Because every thing is not every one's business,yet there are many here who could have guided.It appears to have been overlooked by them.just to highlight it i am posting this remark.
