Provident fund

girish (Querist) 19 June 2015 This query is : Resolved
What should be the basic wages and Salary for deducting the PF. Whether it should be the minimum wage rate. Please advise is there any chance for litigation if we deduct PF on wages below minimum wages

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Guest (Expert) 19 June 2015
Mr. Girish,

As an accounts manager, are you supposed to take up the job of HR unit? Let HR do its own functions. Tey are supposed to be well aware about the PF Act and rules.

If HR is incapable to discharge its functions, your company can well afford to hire services of some expert in service laws. Any free advice is not called for by you or your company. However, you are welcome, if you have any personal problem, not related to your official work.

Kumar Doab (Expert) 19 June 2015
Expert Mr.Dhingra has indeed provided valuable advise and it shall indeed help you individually too.

To illustrate further::::An employer would always want that he/she does not offer his neck and there is always someone to take the blame.

The matter may not necessarily move to litigation only as Employee’s/trade Unions/media/Labor office/PF office may also be breathing down the neck………………

Let the HR and legal cell handle it as they are the right personnel/div for such matters.

There are establishments/employers that would want to save every penny and may not want to recruit even one HR person and may want Admin/Accounts to handle it.

There are establishments/employers that would want to save every penny and may not want to recruit even one seasoned and experienced HR person and may recruit a fresher/inexperienced person and then the person taken on board would be roaming in various forums for free advice.

In case of an error the blame is casted on the hapless person.

It is obvious from the query that you are not well versed with these matters and would certainly be giving invitation to unnecessary trouble by accepting dictates of employer in matters that do not pertain to you.

You may advise the employer to contract an able Labor Law Consultant/Service Matters Lawyer/Law firm dealing n Labor Law matters and let the matter be handled by the experts in the field………………………or have experienced HR persons on board.

You are welcome to post your queries.