Archive for September, 2009

The SaaS Edge

Posted in General on September 4th, 2009 by Aditya – Comments Off

  • All your data is secure on our ultra reliable servers in Germany. All data is backed up nightly to our servers in the United States. Compare this with your most critical data lying on a rickety old computer in your office. How many times have you had to lose time because of faulty hard disks?
  • You own your data at all times. We help you export your data in the unlikely and unfortunate case that you decide to close your account with us.
  • Access your data ANYTIME, ANYWHERE 24-7 365! No matter where you are and when you need, if you have internet access you have all your information at your fingertips.
  • Increase effectiveness and productivity within your organization by enabling concurrent access to information from multiple branches and locations within your company. Let your employee be effective when they are telecommuting.
  • Lower the Total Cost of Ownership (TCO) by reducing or eliminating capital expenditure on servers and other IT infrastructure your own and maintain and have to pay annual maintenance of.
  • Our interests are vested with yours. Subscription model based payment ensures that we as a vendor work hard for our money month after month. We don’t run away with a pot of cash to leave you in the lurch once the project is implemented. We need to provide good service to your each month to get our payback.
  • New features for free as we implement and improve our service to attract new customers. You benefit from our hard work without ever having to upgrade or install new software. No more migration. It all just works seamless month after month
  • Powerful IT Infrastructure or as it is more popularly called these days, Cloud Computing. We maintain and manage large powerful servers that you would not be economical for you to own because we handle many accounts. We put our intelligence to make the platform scale and be redundant to give you the reliability that you deserve.
  • Extremely low cost of entry with a sliding scale in cost as you scale and grow. Our subscription model is based on the number of employees you manage on a monthly basis. So if you are just starting up, your monthly outflow is very small. As you grow, the per month, per employee cost reduces and your total outflow remains manageable and under control.
  • Focus on your core business and not on non-core supporting aspects. There is no reason to spend precious resources managing non-core areas of your business now that you have professionals taking care of specialized areas.

Provident Fund for Beginnners

Posted in HR Basics on September 4th, 2009 by Aditya – Comments Off


If you are a company that has more than 20 employees then your company must be registered with the ‘Employee Provident Fund Organization, India. If your company strength ever reduces below 20, you must continue to be registered with the Provident Fund.


Under the EPF Act, the employee and employer must contribute towards a pension fund for the benefit of the employee at retirement. The Govt also contributes a smaller amount towards the employee.

Employee’s Contribution

As per current laws, employee must contribute 12% of their basic salary (include Dearness Allowance) towards PF. The employer must also contribute a similar amount towards PF per employee.

The salary applicable for PF is capped at 6500. So, if your basic is 10000, your applicable PF deduction will be 12% of 6500 only (Rs. 780). If your salary is under 6500, then of course it’s 12% of whatever the basic is. For e.g. on a basic salary of 6000, the PF deduction is Rs. 720.

If you join a company at a salary higher than 6500, then you are not compelled to register for PF. However, if your salary grows from below 6500 to about it, you do not get unregistered from PF. You need to continue to have your PF deducted.

Employee are welcome to deposit over and above the minimum mandatory amount specified by PF. This is called Voluntary PF. The employer is however not obliged to match this amount.

Note: Employee’s contribution depends on the wages paid calculated after any loss of pay days during the month. If 50% of your salary is deducted due to absence or leaves, then effectively all relevant contributions are halved as well.

Employee’s PF contribution is tax deductable and as such does not contribute towards Gross earnings. There may be limits to the contribution which is tax deductable.

Employer’s Contribution

Employer also has to pay 0.5% EDLI, 1.1% Admin Charge and 0.01% Inspection Charge.

Employer’s contribution of 12% is split into 2 schemes Employee’s Pension Fund and Provident Fund. 8.33% out of 12% is paid to Employee’s Pension Fund and the remaining to the Provident Fund.

The above rules generally apply to most companies. There might be local exceptions in certain industries, states and sectors.


Each month, every company needs to make certain submission to their nearest EPF office. A summary of those submissions are -

  • Form 12A Consolidated Statement of dues and remittance By 25th of the following month to which the dues relate.
  • Form 5 Return of Employees qualifying for membership to the Employees’ Provident Fund for the first time during every month. Within 15 Days of the following month.
  • Form 10 Return of members leaving service during the month.
  • Payment Challan
  • Form 3A Member’s annual Contribution card : Form showing month wise recoveries towards E.P.F and Pension Fund in respect of a member for one financial year. To be furnished by the employer before 30th April of the following year.
  • Form 6A Consolidated annual contribution statement : This form provides annual contributions of each member of the establishment . A vital form for compiling the annual Provident Fund statement of a subscriber. To be submitted by 30th April.


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