POINT AS TO P.F.(PROVIDENT FUND ACT 1952)
Ø Employers contribution 12% of basic earned (Max. 6500-00), out of this 8.33% goes to FPF(family pension fund) and the balance 3.67%(12%-8.33%) goes to provident fund.
Ø Employee’s contribution may go beyond 12%.
Ø Administration charges 1.10% of PF wages.
Ø EDLI charges 0.50% of PF wages.
Ø Inspection charges 0.01% of PF wages.
Ø Payment of challan on monthly basis due date 20th of following month, comprising all above amount.
Ø Return on annually basis and on monthly basis as well.
Ø Employee is covered if PF wages is 6500 /- or less p.m.
Ø Employees includes;
o Employed through contractor.
o Part-time employee, sweeper working twice or thrice in a week, Night watchman, Gardner working for 10 days a month. [Railway employees cooperative banking society ltd. Vs Union of India, 1980 Lab. IC 1212].
o Any person who is employed IN CONNECTION WITH WORK OF ESTABLISHMENT.
Ø Act applies to establishment employing 20 or more persons or specified class of establishment. In underlying 20 or more casual labour shall not be reckoned.
Ø PF wages means all emoluments paid or payable except;
Ø DA, HRA, Bonus, Overtime allowance or Other allowance. In other words PF wages = Basic wages.
Ø Employers contribution 12% of basic earned (Max. 6500-00), out of this 8.33% goes to FPF(family pension fund) and the balance 3.67%(12%-8.33%) goes to provident fund.
Ø Employee’s contribution may go beyond 12%.
Ø Administration charges 1.10% of PF wages.
Ø EDLI charges 0.50% of PF wages.
Ø Inspection charges 0.01% of PF wages.
Ø Payment of challan on monthly basis due date 20th of following month, comprising all above amount.
Ø Return on annually basis and on monthly basis as well.
Ø Employee is covered if PF wages is 6500 /- or less p.m.
Ø Employees includes;
o Employed through contractor.
o Part-time employee, sweeper working twice or thrice in a week, Night watchman, Gardner working for 10 days a month. [Railway employees cooperative banking society ltd. Vs Union of India, 1980 Lab. IC 1212].
o Any person who is employed IN CONNECTION WITH WORK OF ESTABLISHMENT.
Ø Act applies to establishment employing 20 or more persons or specified class of establishment. In underlying 20 or more casual labour shall not be reckoned.
Ø PF wages means all emoluments paid or payable except;
Ø DA, HRA, Bonus, Overtime allowance or Other allowance. In other words PF wages = Basic wages.
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