Salary and epf
MOHAMED FIROZ
(Querist) 18 June 2013
This query is : Resolved
WE ARE RUNNING A MATRIC SCHOOL WITH MORE THAN 20 STAFF, AND ARE ENROLLED UNDER THE EPF FOR THE PAST 15 YEARS. NEW STAFF HAVE BEEN APPOINTED FROM THE 1st OF THIS JUNE AND THEIR FIXED SALARIES ARE ABOVE Rs. 6500 AND UPTO RS.9000.
IS IT MANDATORY TO ENROLL THEM UNDER EPF?
HOW TO AVOID EPF FROM THE MANAGEMENT SIDE, AND IF NOT HOW BEST TO PAY THE MINIMUM EPF FOR THEM? HOW TO FIX THEIR BASIC PAY AND D.A.?
SOME OF THE ALREADY ENROLLED STAFF HAVE A SALARY OF Rs.7500 AND ABOVE, AND HAVE BEEN CONTRIBUTING FOR THE WHOLE AMOUNT SO FAR.
CAN WE FIX THEIR SALARIES AT Rs. 6500 AS BASIC PAY FROM THIS JUNE AND DEDUCT Rs. 780? CAN WE PAY THE BALANCE AS D.A.?
THE ADMINISTRATOR IS PAID Rs.20000 AND HIS EPF HAS BEEN DEDUCTED ON THE WHOLE AMOUNT FOR THE PAST SEVERAL YEARS.
CAN WE REVISE HIS PAY AS Rs. 6500 + D.A. AND PAY EPF FOR Rs.6500 AND PAY Rs. 13500 AS D.A.? WHAT ARE THE I.T. RULES ON HIS EPF CONTRIBUTION?
MOHAMED FIROZ
Sudhir Kumar, Advocate
(Expert) 19 June 2013
what is the salary report you are giving to Education department and Secondary Board.
Sudhir Kumar, Advocate
(Expert) 19 June 2013
for administrator you are paying full EPF and for teachers you are inventing methods of evasion.
I doubt if this forum is meant for such advise.
Kumar Doab
(Expert) 19 June 2013
Fully agreed with Mr. Sudhir Kumar.
MOHAMED FIROZ
(Querist) 19 June 2013
WE HAVE SO FAR BEEN PAYING THE EPF FOR ALL OUR STAFF ON THEIR ENTIRE SALARY AMOUNT RUNNING TO LAKHS FROM THE MANAGEMENT SIDE AND HAVE SUBMITTED THE REPORT TO ALL CONCERNED DEPARTMENTS AND TO I.T. DEPT ALSO.
WE CAME TO KNOW THAT THE EPF ACT VERY CLEARLY STATES THAT EMPLOYEES RECEIVING MORE THAN Rs. 6500 HAVE THE OPTION TO JOIN THE EPF SCHEME WHICH IMPLIES THAT SUCH EMPLOYEES CAN BE EXEMPTED FROM THE SCHEME IF THEY DESIRE SO OR IF THE MANAGEMENT DESIRES LIKEWISE.
AS SUCH THERE IS NO QUESTION OF EVASION ON OUR PART BUT WE WOULD LIKE TO BE PRUDENT IN PLANNING OUR FUTURE CONTRIBUTIONS VIDE A BIG FALL IN OUR INCOME.
INCIDENTALLY THE SCHOOL IS RUN BY A PUBLIC CHARITABLE SOCIETY ON A LOW FEE TARIFF. PLEASE ANSWER OUR QUERY WITHOUT PREJUDICE TO ANY PRESUMPTION OF BETRAYAL AGAINST OUR SINCERE AND LOYAL STAFF. IT SEEMS THE QUERY HAS GIVEN A WRONG IMPRESSION TO SOME OF THE EXPERTS OF THIS FORUM.
Sudhir Kumar, Advocate
(Expert) 20 June 2013
The PF membership is not choice of the employee.
you are wrong to assume that more than 6500 salary gives any such option.
In case basis wages are above rs 6500 the employer has option to cover the employee (employees has no option. But if employee is already covered (either under this company or in any previous one) he will continue to be covered irrespective of salary being raised to 6500.
your institution being charitably funded or having fall in income has absolutely no relevant to EPF&MP Act. All educational institutions plead so.
Sudhir Kumar, Advocate
(Expert) 20 June 2013
If you really follow the Education deptt orders on the salary structure, you are liable to pay at par with Govt scale which starts from 6500 even for PRT. That does not mean that all teachers will be uncovered.
