About PF Queries

About us:

We have been rendering Consultancy Services exclusively in Provident Fund, ESI, Pay Roll Processing Services and Labour Law related matters for the last 32 years. We initially started as a small time enterprise and gradually shifted our focus on full time and dedicated service for our esteemed clients. We have on our rolls reputed Chartered Accountants, Company Secretaries, and other legal experts who deal precisely and offer expert opinions, case laws and provide updated Circulars on contentious issues. We are well acquainted and versatile in dealing Provident Fund matters and offer legal opinions on critical issues such as applicability of the EPF & MP Act 1952 to the Establishment or Factory, eligibility criterion for enrollment of employees and exclusion of employees from the purview of Employees Provident Fund Scheme, 1952, issues regarding enrollment of International Workers and filing of Returns related to International Workers viz. SW1 and SW2 are few to illustrate.  

Our Services:

Employees’ Provident Fund Act 1952:

Registraton of Estt./Factory: We undertake online Registration of Establishment or Factory under Employees’ Provident Fund Act 1952 and assist for documentation process and also assist for post coverage inspection by the EPF Authorities.

Salient Features of our Services on Provident Fund:

·        Generation of e-challan and filing of e-returns for Provident Fund;

·        Upload of Annexure II details; (employees’ personal details) and upload of digital signatures;(Provident Fund)

·        Upload of KYC details of Provident Fund Members and uploading  of  UAN data;

·        Submission of Declaration Form in Form 11 (New) which is redesigned in January 2015, so as to generate Universal Account Numbers to the P.F.Members who joined on or after June 2014;

·        Calculation and payment of Provident Fund and ESI Contributions;

·        Filing of Monthly Returns in Form 5, Form 10; (Previous years Prior to Mar. 2012)

·        Filing of Annual Returns in Form 3-A and 6-A;  (Previous years Prior to Mar.2012)

·        Expertise in filing computerized data as required by the P.F./ESI Department;

·        Will take up filling up of withdrawal forms in respect of outgoing employees and employees those who retire from service;

·        Claims regarding Monthly Pension,widow pension and all other related claims will be filled in accordance with the P.F. Department rules and regulations and necessary help/assistance will be provided till the claims are processed and approved in the department, and ensure the benefits are reached to the claimants;

·        Online Transfer of Provident Fund amounts from previous Estt./Company to the present Estt./Company and necessary assistance/help/correspondence will be undertaken; 

·        Registration of job/work contractors under Provident Fund Act/ESI Act will be undertaken;

·        Offer expert opinion on eligibility criterion for enrollment of employees and exclusion of employees to the EPF Membership;

·       Offer expert opinion on payment of P.F.Contributions on wages/salaries earned by the employees and exclusion of wages/salaries for payment of Provident Fund contributions;

·        We have special focus on enrollment of International Workers. We provide expert opinion on eligibility and enrollment criterion for P.F.Membership, Payment of Contributions for International Workers and filing of special returns in respect of International Workers;

·        All critical issues will be resolved with the department arising out of Payment of P.F.Contributions on wages/salaries, eligibility criterion for employees and exclusion of employees from the purview of EPF Scheme 1952; 


Employees’ Provident Fund Act 1952:


Applicability of EPF Act 1952:


Statutory Coverage:


Section 1(3) (a): The Employees’ Provident Fund Act 1952 applies to every establishment which is a factory engaged in any Industry specified in the

                            Schedule I and in which twenty or more persons are employed; subject to the provisions contained in Section 16.


Section 1(3) (b):  to any other establishment employing twenty or more persons or class of establishments which the Central Government may by notification

                             in the Official Gazette, specify in this behalf; subject to the provisions contained in Section16.

                             Provided that the Central government may, after giving not less than two months’ notice of its intention so to do, by notification in the

                             Official Gazette, apply    the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified

                             in the  notification.

                             Cinema theaters including preview theaters are brought under the purview of the EPF Act 1952, with effect from 01.10.1984,

                             employing 5 and above workers.


Voluntary Coverage: Section1(4) of EPF Act:


If the employer (Management), and majority of employees are willing to come under the provisions of EPF Act 1952, and the conditions under section 1(3) (a) or 1(3) (b) are not applicable to an establishment, such establishment may be brought under purview of EPF Act 1952, by notification in the Official Gazette.

In brief to say that the establishments employing less than 20 employees and the activity of the establishment does not fall under Schedule I (Factory/Industry) 1(3) (a)  or Non Factory Estts. 1(3) (b) of the EPF Act.


Coverage of Employees’ under the EPF Act and Scheme 1952:


Determination– As to who is an employee to be Covered:


The term employee, as defined by the Employees’ Provident Funds Act, does not make any distinction between the regular or casual employee or even those engaged through the contractor hence all the employees working on piece rate basis or through the contractor would be counted for coverage under the Employees’ Provident Fund Act.

Even when an establishment is covered under the Act and Scheme, it does not mean that all employees are to be enrolled as members.  Any person employed to do certain work altogether not connected as an employee of the establishment,cannot be considered as an employee of the establishment. A night watchman who looked after several shops in the bazaar and also the establishment in question and received small remuneration from each of them cannot be treated as an employee of the establishment.  However, an accountant writing accounts on contract basis with option to work at his own residence has been held an ‘employee’ thus coverable under the Act.

Managing Director or Director of a Company cannot be an employee to be covered under the Employees’ Provident Funds and Miscellaneous Provisions Act. However, if a Managing Director or Directors of a Company work on part time basis and discharging extra duties apart from functioning of an ordinary Director, they would be employees to be covered under the Act.

Consultant doctors providing services for some hours or so to different establishments without control over them by that establishment would not come under the category of “employees” coverable under section 2(f) of the EPF & MP Act 1952.

Casual or temporary labourers, if not connected with the normal or regular work of the establishment, cannot be counted for establishing total number of employees for covering the establishment under the Act.

 

Wages and Contributions:


Section 2(b) of the EPF & MP Act defines ‘basic wages’ as under:

            Basic wages means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, butdoes not include-

(i)                 the cash value of any food concession;

(ii)              any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;

(iii)            any presents made by the employer.

 

In order to determine as to what is ‘basic wages’ one has not to look outside the Act since it means all emoluments paid or payable in cash to an employee; such emoluments must be earned by an employee-

 

(i)                while on duty, or

(ii)              on leave with wages, and

(iii)            in accordance with the terms of the contract of employment.

 

Basic wages in its definition specifically exclude-

(i)                cash value of any food concession;

(ii)              dearness allowance in cash payment on account of or rise in the cost of living;

(iii)            house rent allowance;

(iv)            bonus;

(v)              commission or any other similar allowances for employment of work done, or

                         any presents made bythe employer. 

 



 




Brief Note on enrollment of International Workers to the Provident Fund:

Fundamental changes to Employees’ Provident Funds and Pension Schemes have been introduced for coverage of International Workers. The amendments as published in the Gazette of India No. 538, dated Oct.1, 2008 have been made relating to Employees’Provident fund by introducing a new category of employees known as“International Workers” who will be required to join these Schemes w.e.f.1.11.2008.

 

Salient Features:

·        The employees qualifying as‘International Wokers’  will contribute to the E.P.F.Schemes and the employers would also required to make an equal contribution.

·        Like Employees’ Provident Funds Act and Schemes, there will be no wage/salary ceiling for International Workers.

·        As such the P.F.Contributions are payable in respect of International Workers on the salary earned in Indian currency with out any wage ceiling but the contributions are payable on Basic plus DA and Food value of concession and retaining allowance if any paid. 

·        There is no ceiling for payment of EPS contributions.  The EPS Contributions are payable @ 8.33% on total wages (Basic plus DA) without ceiling of Rs. 15,000/-

·        The EDLI Contributions/EDLI Admn.Ch. in A/c. No. XXI and XXII are payable on wage ceiling of Rs. 15000/-.

·        The notification exempts International Workers from those countries with which India has signed Social Security Agreements, commonly known as Totalisation Agreements, and who have been contributing to their home country social security Schemes. The entire objective of such agreements is to ensure a level playing field for mobile assignees.  These agreements aim to protect the interests of Indian professionals by securing exemption from social security contributions in case of certain short term assignments in the host country.

·        The Indian employees on short term International assignments (period specified in each agreement), who are contributing to the Indian P.F.Scheme, would not be required to contribute to the social security schemes in the respective host countries.

 

 

 

Para 83: Special provision in respect of International Workers:

Para 69:  Circumstances in which accumulations in the fund are payable to an International worker:

(1)  An International Worker may withdraw the full amount standing to his credit in the Fund:

i)                   On retirement from service in the establishment at any time after attaining age of 58 years;

ii)                 On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by the Medical Officer of the establishment, or where an establishment has no regular medical Officer, by a registered medical practitioner designated by the establishment.

 

2.   Only those employees covered by a SSA will be eligible for withdrawal benefit under the EPS, 1995, who have not rendered the eligible service (i.e. 10 years) even after including the totalisation benefit if any as may be provided in the said agreement. In all other cases of IWs not covered under SSA, withdrawal benefit under the EPS, 1995 will not be available.



ESI Act 1948:

Registration of Estt./Factory: We undertake online registration of Establishment or Factory under Employees’ State Insurance Act 1948 and assist for documentation process and also assist for post coverage inspection by the ESI authorities.

Salient Features of our Services on ESI:

·        Generation of e-challan and filing of e-returns for ESI;

·        Upload of employees details for generation of ESI Cards;

·        Undertaking of Branch Code Registration under ESI  for new branches opened in all over India;

·        Issue of Permanent ESI Cards/Pehchan Cards for the subscribers of ESI

·        Advise on availing medical benefits to the ESI beneficiaries;

·        Update of employer’s details on ESIC Portal for subsequent changes in management or other details such as change of address, Mobile No., email Id. Etc.

·        All critical issues will be resolved with the department arising out of Payment of ESI Contributions on wages/salaries, eligibility criterion for employees and exclusion of employees from the purview of ESI Act 1948;