Contribution Rate Employee (12%):12% of monthly basic is paid by the employee towards Provident Fund. Employer (13.

61%) :Employee Provident Fund EPF A/c Administrative charges Pension Fund Employee Deposit Link Insurance Administrative charges on EDLI

3.67% of monthly basic 1.10% of monthly basic 8.33% of monthly basic 0.5% of monthly basic 0.01% of monthly basic

Note:In the EPF deposit challan the amounts are to be mentioned in respect as under.

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A/C No.1 EPF [3.67% of employer share & 12% of employee contribution] A/C No.2 Administrative charges [1.1% of salary on which EPF deducted] A/C No.10 FPF [8.33% of employer share of contribution] A/C No.21 EDLI [0.5% of salary on which EPF deductions were made] A/C No.22 Administrative charges on EDLI [0.01% of salary on which EPF deductions were made]. Total amount is to be deposited through single challan in quadruplicate in State Bank of India or State Bank of Patiala or Bank authorized in this behalf of EPF authorities. Bank will keep two copes and return to copies as receipt. One of the above bank receipts is to be attached with EPF monthly return on Form 12A and to be submitted with office of Regional Provident Fund commissioner of your area. Check PF of own Company or that of Contractors:Month wise Statutory Deposits & Returns January Before 15th - P.F. Challan Before 25th P.F Form 5, Form 10 & Form 12-A February Same as January month March Before 15th - P.F. Challan Before 25th P.F Form 5, Form 10 & Form 12-A P.F. Annual Returns in Form 6A & 3A April to December Same as January month Monthly PF Returns Ensure remittance of PF contributions of employees and employers in PF Challan on or before 15th of the following month of salary disbursed. Submit PF Challan along with following documents to concerned PF Office as monthly returns. Form 12 A Consolidate statement of amounts disbursed Form 2 Individual declaration forms in respect of any newly joined employees Form 5 Consolidate list of newly joined employees Form 10 Consolidate list of persons who have resigned/terminated Please ensure that you submit these forms to PF office under cover letter and have an acknowledged copy for you records. Annual Returns

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1. 2. 3. 4.

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Form 3A: Contribution card for specific currency period (Employee wise) Form 6A: Annual Statement of contribution (Company Wise) Employees Provident Fund Form No.10 C & Form 19 Instructions for a member while sending application to Employees Provident Fund Organization.Use the appropriate form for claming Provident Fund Pension, Withdrawal benefit/scheme certificate, Employees Deposit Linked Insurance benefit. As given below:-

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Form 19: To claim final settlement of Provident Fund by a member. Form 20: To claim Provident Fund by nominee/legal heir on death of the deceased member. Form 10-D: To claim pension. (In duplicate : if within state, in triplicate: if other state) if employee is having more than 10 years of service Form 10-C: To claim withdrawal benefit/scheme certificate under Employees Provident Fund Scheme 95 if employee is having less than 10 years of service Form 13: To effect transfer of Provident Fund/Pension from one A/c to another. Employee Provident Fund Organization has introduced a new PF returns software that can be installed by all employers and by keying in data all the required returns can be generated. Check out the link http://www.epfindia.com/Employers_eReturn.htm Specific additional requirements Death Cases:Nominee/legal heir should apply in Form 20/Form 10-D/Form 5IF. If the member has not executed any nomination, application should be supported with certificate of Legal heir/ Succession Certificate from family members issued by Revenue official/sworn in an affidavit by a court of law. Death certificate of the member. Pension Cases:Joint photograph of member/spouse or the claimant should accompany the application. Details of the branch of the specified bank may be given legibly. Date of birth certificates of children. Some Important points regarding the withdrawal of the PF Amount Regarding withdrawal of PF, you have to withdraw the forms from any PF Office and fill these up and send to the respective employers. The Employee & Employers contribution columns have to be left blank. The same will be filled up by the employers and signed by their authorized signatory and deposited to the respective PF office. Well, in the said forms, there is one column, asking the mode of payment. It would be preferable if you choose the option of transferring your PF amount directly to your bank account. The transaction is safe and fast. After Resignation employee can finally withdraw money after 3 months from the date of resignation and for the same, PF form need to be submitted to PF office only after 2 months from the date of resignation. Withdrawing Employee PF amount Now that is more simple than it is usually conceived to be. The first question one needs to ask oneself is that Do you reall y want to withdraw the PF saving or simply transfer it to the new PF account with the new Employer? If the new employer you joined with does not have a PF account or you in fact you decide to while away your time then you still have 2 options!! Option 1 Withdraw the PF amount using the following 2 Forms

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Form 19 For withdrawal of Provident Fund Amount Form 10 C For withdrawal of Pension Amount; But now, if you have already put in more than 10 years of contribution in PF then what you need is Form 10 D instead to withdraw the Pension amount. Option 2 Opt for a scheme certificate in lieu of withdrawal and transfer it to the the PF account of your new employer you wish to join later. Now if you dont wish to opt for any of the above and you only want to transfer your PF account with the new employer, i woul d say that this is a wise decision because there is no saving account in India which gives you a better interest rate than PF and secondly you can later opt for loan for housing, marriage, etc too. Well if this is your decision, then it is Form 13 ( Application for transfer of EPF Account) that you need. Just fill in the said form, get your present employers (authorized signatory) signature and forward the same to your previous employer. The PF amount in your previous employers PF account would get transferred to your present PF account. Click on this link to get to know the balance in your PF Account http://www.epfindia.com/MembBal.html Now if you have already applied for your PF this is where you can check for the claim status -

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http://www.epfindia.com/indiaepf/loginnew.aspx http://www.epfindia.com/ClaimStatus_New.html Inform your separated employees about this link so they dont have to bother you on this.

Promotion Policy by SREE RAMA RAO on DECEMBER 24, 2010

Seniority and merit thus, suffer from certain limitations. To be fair therefore a firm should institute a portion policy that gives due weightage to both seniority and merit. To strike a proper balance between the two. A firm could observe the following points:

1) Establish a fair and equitable basis for promotion i.e. merit or seniority or both. 2) A promotion policy established thus, should provide equal opportunities for promotions in all categories of jobs, department and regions of an organization. 3) It should ensure an open policy in the sense that every eligible employee is considered for promotion rather than a closed system which considers only a particular class of employees. It must tell the employees the various avenues for achieving vertical growth through career camps, charts etc. 4) The norms for judging merit, length of service, potentiality etc must be established beforehand. The relative weightage to be given to merit or seniority or both should also be spelt out clearly. 5) The mode of acquiring new skills, knowledge etc should he specified to all employees so that they can prepare themselves for career advancement 6) Appropriate authority should be entrusted with the responsibility of taking a final decision on promotion. 7) Detailed records of services, performance, etc should be maintained for all employees to avoid charges of favoritism, nepotism etc. 8) It should be consistent in the sense that it is applied uniformly to all employees, irrespective of their background. 9) Promotion policy should contain alternatives to promotion when deserving candidates are not promoted due to lack of vacancies at higher level. These alternatives include up-gradation re-designation, sanctioning of higher pay or increments or allowance assigning new and varied responsibilities to the employees by enriching the job or enlarging the job. 10) A provision for appeal against (alleged) arbitrary actions of management and its review should be there. 11) Promotions initially may be for a trial period as to minimize the mistakes for promotion 12) Promotion policy once it is formulated should be communicated to all employees particularly to the trade union leaders. It should be reviewed periodically based on the experiences and finding of the attitude and morale surveys. Demotion:

Demotion is the downward movement of an employee in the organizational hierarchy with lower status and pay. It is a down grading process where the employees suffers considerable emotional and financial loss in the form of lower rank, power and status lower pay and poor working conditions.

Causes:

There are several factors responsible for demotions:

1) A promotee is unable to meet the challenges posed by a new job (technically superior, administratively complex, involving multifarious responsibilities etc). 2) Due to adverse business conditions, organizations may decide to lay off some and downgrade other jobs 3) Demotions may be used as disciplinary tools against errant employees. Policy:

Demotion may turn employees into mental wrecks. It may have a devastating impact on employee morale. It is an extremely painful action, impairing relationships between people permanently. While effecting demotions, therefore a manager should be extremely careful not to place himself on the wrong side of the fence. A clear cut policy may save the day for him in most cases.

1) A clear list of rules along with punishable offenses should be given to all employees. 2) Any violation should be investigated thoroughly by a competent authority. 3) In case of violations it is better to state the reasons for taking such a punitive step clearly and elaborately. 4) Once violations are proved there should be a consistent and equitable application of the penalty. 5) There should be enough room for review.

Transfer :

TRANSFER POLICY

I. Policy

When it becomes necessary for the company business to transfer employees from one position and/or location to another, it is the policy of the company to place employees in positions where their maximum abilities can be utilized to the mutual benefits of the company and the employee.

II. Practice and Procedure 1. Types of Transfer (1) Transfer from one cost center or location to another.

(2) Transfer from one wage class to another.

(3) Transfer from one classification to another.

2. Transfer Definitions

(1) Temporary Transfer -- reassignment of an employee to a new cost center, location, wage class or classification for a specific period not to exceed 3 months. With temporary transfers, it is normally expected that the employee will be transferred back to the former job status upon completion of the temporary assignment.

(2) Permanent Transfer -- reassignment of an employee to a new cost center, location, wage class or classification for an indefinite period longer than 3 months.

3. Elements to be considered before transfer

An employee is going to be transferred to a position where he/she will have new and/or increased responsibilities and to assure the most effective use of employee abilities, the following factors should be considered when reviewing a transfer:

(1) Demonstrated excellent performance in current and previous work assignments.

(2) Specific qualifications and knowledge which relate to the new position.

(3) Opportunity for the employee to further develop and increase his competence.

(4) Training required or previous working experience available to the new position.

4. Transfers (1)Company-initiated transfers - if there is an employee in whom a supervisor is interested, he should discuss the individual with HR Department and obtain pertinent data regarding the employee's background and present status. If the supervisor is interested in talking with the employee, the supervisor should discuss it with the employee's supervisor before any discussion with the employee. Should the supervisor want to transfer the employee, he should arrange a transfer data. HR has responsibility for coordinating any interview and the subsequent transfer.

(2) Employee-initiated transfers - if an employee desires a transfer, he should discuss the matter with his

supervisor. In case his supervisor concurred the employee's request the supervisor should discuss the transfer matter with HR and concerned Department supervisor and Manager before any action taken or any information leaking out.

5. Processing the Transfer

(1) Responsibility of the concerned Department -

Releasing supervisor, acquiring supervisor and HR Officer should work together to determine the effective date of transfer and other changed status (Title, Salary level and etc.)

The acquiring supervisor will initiate the "Request for Personnel Action" (RFPA), completing all information necessary to make the change. Then he will forward the RFPA to the releasing supervisor for concurrence thru HR Department. Both Department Managers should approve the transfer action with signature on the RFPA. The releasing Manager will notify the employee when to report to his new position or working location after the final approval made by General Manager.

(2)HR Department Responsibilities - HR Department will be responsible for evaluating and reviewing the transfer action to make sure that all proposed personnel actions are in accordance with the existing Company HRM Policy.

6. Wage/Salary adjustment

In principle, no wage/salary adjustment will be considered at the date of the transfer. This adjustment could be reviewed and proposed by the requesting supervisor for the employee who completes the 3- month probation on the new position successfully