Dear All,

I am working in a Manufacturing Company. Recently, one employee joined on 12th Feb 2011 in my company. I calculated and paid his 18-day salary. Now, the company G.M. told me that his Date of Joining was 1st Feb 2011. Now, I have to pay his remaining salary. My question is: should I deduct PF from his arrears amount? His 18-day salary was below 10,000, but if I pay the rest of the salary, then his gross amount will exceed 10,000. So, his Professional Tax will also change (the company is in Maharashtra). What should I do? Please help me.

Awaiting your response.

With Regards,
Vineet

"Everything is possible only when you can DO IT"

From India, Yavatmal
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Anonymous
Dear Vinnet,

As you know, PF is always deducted from the basic salary. From arrears, you cannot deduct the PF amount; the arrear part is always added after the processed salary. Suppose the salary is processed for only 28 days (in a 31-day month), then PF is deducted from the basic salary, regardless of the salary breakdown percentage applied in your company.

|DAYS|BASIC|HRA|CONV|SITE|EDU|SPECIAL|AR SAL|GROSS|PF|
|---|---|---|---|---|---|---|---|---|---|
|28|5,121.29|2,617.55|1,478.58|-|435.35|960.13|-|10,612.90|(615.00)|

Thanks & Regards,
Anil Singh
H.R. Officer
B.L. Kashyap & Sons Ltd.

From India, Mumbai
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Dear Anil Kumar, But arrears is also a part of salary then how we can not deduct PF from Salary? Plz clear my doubt. With Regards, Vineet.
From India, Yavatmal
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Anonymous
Dear Vineet,

As you know, PF is always deducted from the Basic Salary (12%) if the basic salary is less than 6500 Rs. The arrears part is always added after your monthly processed salary. For example, if my gross salary is 11750 Rs per month and as per my company, my basic salary is 5670 Rs, then my PF will be deducted 680 Rs only from my fully processed salary for 30 days.

Regards,
Anil Singh

From India, Mumbai
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