Hi,
I am working in the HR Department of a Company based at Gurgaon , I have a query , we have got a notice from PF office under section 7A .
We have submitted all the related documents for the inspection .
In our Organization , as a part of Salary , there is a salary components called "Special Allowance" , now the PF Insepctor is forcing us to give the detailed explanation of the components "Special Allowance" and why we are paying the same or else pay PF contribution on Special Allowance also .
Our company strength is around 100 employees and only 10 employees are less than basic of Rs. 6500 /- ( PF Limit ) , but as a benefit to employees , our Management has taken the decission to deduct the PF ( 12 % ) from the salary of all the employees and also contribute 12 % irrespective of Salary / Designation and we are depositing the PF contribution regulary from the starting .
Now , all our employees ( those whose basic is more than Rs. 6500 /- , around 90 employees ) are ready to give a declaration to the Management and the PF commissioner , that voluntarily they want to withdraw the PF membership and they want Management to include 12 % of Basic i.e Employer Contribution to their inhand salary .( Due to recession , our company has not declared any increment ) , so that their inhand salary will increase .
Can some expert help me , whether it is possible or not .
Even if not fully from next month onwards , can we start contributing on Rs. 6500 /- only irespective of Higher Basic for the existing employees ?
Please suggest ..
Regards
B M Dash
I am working in the HR Department of a Company based at Gurgaon , I have a query , we have got a notice from PF office under section 7A .
We have submitted all the related documents for the inspection .
In our Organization , as a part of Salary , there is a salary components called "Special Allowance" , now the PF Insepctor is forcing us to give the detailed explanation of the components "Special Allowance" and why we are paying the same or else pay PF contribution on Special Allowance also .
Our company strength is around 100 employees and only 10 employees are less than basic of Rs. 6500 /- ( PF Limit ) , but as a benefit to employees , our Management has taken the decission to deduct the PF ( 12 % ) from the salary of all the employees and also contribute 12 % irrespective of Salary / Designation and we are depositing the PF contribution regulary from the starting .
Now , all our employees ( those whose basic is more than Rs. 6500 /- , around 90 employees ) are ready to give a declaration to the Management and the PF commissioner , that voluntarily they want to withdraw the PF membership and they want Management to include 12 % of Basic i.e Employer Contribution to their inhand salary .( Due to recession , our company has not declared any increment ) , so that their inhand salary will increase .
Can some expert help me , whether it is possible or not .
Even if not fully from next month onwards , can we start contributing on Rs. 6500 /- only irespective of Higher Basic for the existing employees ?
Please suggest ..
Regards
B M Dash
CAclubindia
