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Epf account

Rakesh (NA) (59 Points)

16 August 2019

Is it that an individual have to have an EPF account and also a credit in EPF account to work as a consultant in an organization?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182124 Points)
Replied 16 August 2019

Not necessarily..

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Rakesh (NA) (59 Points)
Replied 18 August 2019

Is it that an employer must create an EPF account for a permanent employee of their own organization?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182124 Points)
Replied 18 August 2019

1. PF registration is applicable for all establishment which employs 20 or more persons, subject to certain circumstances and exemptions.

2. It is obligatory that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. As per the guidelines in EPF, employee, whose ‘basic pay’ is more than Rs. 15,000 per month, at the time of joining, is not requried to make PF contributions.

3. An employee who is drawing a pay of more than Rs 15,000 can still become a member and make PF contributions, with the consent of the Employer and Assistant PF Commissioner.

4. The PF contribution paid by the employer is 12% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee.

5. In case of establishments which engage less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is restricted to 10%.

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Rakesh (NA) (59 Points)
Replied 18 August 2019

It was heard that an employer asked the parent company of the consultants who are deputed as consultants in their premises from a parent organization about the details of the PF of those consultants as that employer got some communication from the labour department so that they communicate the PF details back to the labour department. What can this matter then as you stated that PF is must for basic pay lesser than Rs. 15000 ?

Is this limit of Rs. 15000 per month is of basic pay for private organization or it is (basic pay + HRA) for private organizations in this context of that PF is a must for employees if it is less than Rs. 15000 per month?

Is there any limit for consultants also such that if a consultant earns less than a value PF is must for a consultant?

Thank you for your replies.

Regards,

Rakesh (NA) (59 Points)
Replied 20 August 2019

Hello Dhirajlal Rambhia
Can you please answer to my last queries in this Topic?

Thank you for your previous replies.

Regards

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182124 Points)
Replied 20 August 2019

There can be many aspect of the query; but as for your understanding ...... you have no direct employer-employee relation in your present assignment, and hence most of the labour act compliance are not applicable in such case.

Rakesh (NA) (59 Points)
Replied 21 August 2019

It was heard that by CLA an employer must create an EPF account for an employee and contribute to that employee EPF amount even if the basic salary of the employee is more than Rs. 15000 per month. Is this true?

Thank you for your reply.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182124 Points)
Replied 21 August 2019

No. Unless employer has enabled all other employees for such facility.

Rakesh (NA) (59 Points)
Replied 23 August 2019

Is this an employee will have to create an EPF account and contribute to that new EPF account once the employee joins a new employer and earns basic salary more than Rs. 15000 oer month with new employer since he/she was contributing to EPF with earlier employer?