Vijay Kumar Singh (Asstt Manager HR) 12 March 2010

Not contributing to PF

My friend was working in a company where PF contribution was compulsory. However he chamged is job and there is no contribution to PF by the company. However the company has left it optional for employees to contribute 24 % PF (both emploee and employer share) and adiminstartive charges to be borne by the employer.My questions are:

Is this legal?

Should company pay PF on amount equivalent to min limit of Rs 6500/- and not on balance.

If any employee follows this scheme he is entitled to all the benefits under the PF act?

Can he continue with his old PF a/c or should open new a/c

Regards

Vijay

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3 Replies

V. VASUDEVAN (LEGAL COUNSEL) 13 March 2010

As pointed out by you rightly, the Company should pay the employers' contribution on the amount of Rs.6500 and the employees' contribution only has to be paid by the employee. The original PF account can be continued wherever the employee works.

vasudevan

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Rama mohan Acharya (Manager HR(Legal)) 13 March 2010

If the company is covered under the EPF act, the what the second employer is doing is not correct as per the law.

yes, the employer is liable to contribute the share of PF on Rs6500/-, .

1 Like

Sudhir Kumar, Advocate (Advocate) 21 November 2011

You are not able to explain the facts properly and cannot be given workable advise. PF is compulsory in all companies falling within EPF&MP Act, there is nothing optiona for employee of employer.

It is illegal for employer to shift the employer share to employee. he is still defaulter EPFO can still recover from him adn inthis case entire amount contirbuted by the employee shall be employer's hare.