Dear all, Under PF Act, what were the items not covered basic wages & Da in PF wages register. Thanks& Regards Balamurugan.
From India, Madras
Acknowledge(0)
Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Hi Mbala,
Your question is not clear. From what I understand, employees drawing a basic salary up to Rs 6500/- are required to contribute to the Provident Fund, while employees earning above Rs 6501/- have the option to become a member of the Provident Fund. The PF amount is deducted based on the basic salary and not on the DA.
Amiya Jena
From India, Jharsuguda
Acknowledge(0)Amend(0)
Your question is not clear. From what I understand, employees drawing a basic salary up to Rs 6500/- are required to contribute to the Provident Fund, while employees earning above Rs 6501/- have the option to become a member of the Provident Fund. The PF amount is deducted based on the basic salary and not on the DA.
Amiya Jena
From India, Jharsuguda
Acknowledge(0)Amend(0)
Dear Jena,
My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10000. Here basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But here other allowances = Rs. 5000/- are exempt from PF contribution or not? If it is exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
Acknowledge(0)Amend(0)
My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10000. Here basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But here other allowances = Rs. 5000/- are exempt from PF contribution or not? If it is exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
Acknowledge(0)Amend(0)
Dear Jena,
My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10,000. Here, basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But, are other allowances = Rs. 5000/- exempt from PF contribution or not? If they are exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
Acknowledge(0)Amend(0)
My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10,000. Here, basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But, are other allowances = Rs. 5000/- exempt from PF contribution or not? If they are exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
Acknowledge(0)Amend(0)
Mr. Bala ! You other allowances i.e. Rs 5000/- is exempted because PF is not calculated on Allowances. Amiya
From India, Jharsuguda
Acknowledge(0)Amend(0)
From India, Jharsuguda
Acknowledge(0)Amend(0)
A company called 'X' has coverage for all their employees under ESI Act & EPF Act as applicable.
A new employee is coming from company 'Y' who is joining for a basic salary of >6500. Should he be covered under the EPF scheme, or can he be exempted from EPF? Are there any legal obligations on the part of the employer of company 'X' to deduct EPF, even though the new employee's salary is >6500?
If the new employee can be exempted from EPF, is there any legal formality to inform the EPF office? What is the format, etc.?
Please clarify.
Ramamoorthy.S
From India, Madras
Acknowledge(0)Amend(0)
A new employee is coming from company 'Y' who is joining for a basic salary of >6500. Should he be covered under the EPF scheme, or can he be exempted from EPF? Are there any legal obligations on the part of the employer of company 'X' to deduct EPF, even though the new employee's salary is >6500?
If the new employee can be exempted from EPF, is there any legal formality to inform the EPF office? What is the format, etc.?
Please clarify.
Ramamoorthy.S
From India, Madras
Acknowledge(0)Amend(0)
Hi Rama,
As you have mentioned that the employee's basic salary is more than Rs. 6500/- and upon joining a new company, they deduct P.F. for all employees, in that case, certainly, the new company will deduct the P.F.
There is Form No. 11, which is to be filled out along with Form No. 2 (Nomination & Declaration form). In Form No. 11, we gather information about whether the new employee was a member of the P.F. in the last company. If the employee was a member of the P.F. in the last company, then it is the obligation of the new company to deduct the P.F. up to Rs. 6500/- (Basic + DA + Retaining Allowance, if any).
Rajiv Singh
From India
Acknowledge(0)Amend(0)
3As you have mentioned that the employee's basic salary is more than Rs. 6500/- and upon joining a new company, they deduct P.F. for all employees, in that case, certainly, the new company will deduct the P.F.
There is Form No. 11, which is to be filled out along with Form No. 2 (Nomination & Declaration form). In Form No. 11, we gather information about whether the new employee was a member of the P.F. in the last company. If the employee was a member of the P.F. in the last company, then it is the obligation of the new company to deduct the P.F. up to Rs. 6500/- (Basic + DA + Retaining Allowance, if any).
Rajiv Singh
From India
Acknowledge(0)Amend(0)
Balamurugan,
P.F. is calculated based on Basic + D.A. If your salary (Basic & D.A.) increases above Rs 6500, you must calculate P.F. at 12% of Rs 6500 only, as per the P.F. act. However, the employer may choose to pay the full amount if desired.
With Regards,
Pradip
From India, Calcutta
Acknowledge(0)Amend(0)
P.F. is calculated based on Basic + D.A. If your salary (Basic & D.A.) increases above Rs 6500, you must calculate P.F. at 12% of Rs 6500 only, as per the P.F. act. However, the employer may choose to pay the full amount if desired.
With Regards,
Pradip
From India, Calcutta
Acknowledge(0)Amend(0)
hi frends... I want to understand the payroll system and what r the contents of payroll... and how it implement in a particular organisations? Pls do needful
From India, Vadodara
Acknowledge(0)Amend(0)
From India, Vadodara
Acknowledge(0)Amend(0)
Hi,
I want to have clarification on this: A person working in my factory, drawing a daily salary of 500-600 (special fabrication work). The same person will not be available for all the days I require. Persons may change. Similarly, I have 4 persons in my factory who work approximately 18-20 days per month. My factory is registered under the PF act where all regular workers are covered under ESI & EPF. Should I have to cover these temporary workers also under the PF act?
My doubt as above is because their monthly salary per person is arrived at 15000/- individually and paid on their days present basis. Since the monthly salary is Rs. 15000/-, which is above 6500/-, is it necessary for me to include them in PF? Or is there any exemption procedure for them alone?
Please clarify.
Ramamoorthy.S
From India, Madras
Acknowledge(0)Amend(0)
I want to have clarification on this: A person working in my factory, drawing a daily salary of 500-600 (special fabrication work). The same person will not be available for all the days I require. Persons may change. Similarly, I have 4 persons in my factory who work approximately 18-20 days per month. My factory is registered under the PF act where all regular workers are covered under ESI & EPF. Should I have to cover these temporary workers also under the PF act?
My doubt as above is because their monthly salary per person is arrived at 15000/- individually and paid on their days present basis. Since the monthly salary is Rs. 15000/-, which is above 6500/-, is it necessary for me to include them in PF? Or is there any exemption procedure for them alone?
Please clarify.
Ramamoorthy.S
From India, Madras
Acknowledge(0)Amend(0)
Dear All,
Basic salary means basic + DA, and PF is deductible on the basic salary. No other allowances come under the PF arena. The maximum cap is 6500/- of the basic salary. In case any employee receives an increment and post-increment, their basic salary is greater than 6500/-, the employee would have two options: to contribute on the whole basic salary or advise the employer to deduct the PF on the basic salary up to 6500/- amount.
From United States
Acknowledge(0)Amend(0)
Basic salary means basic + DA, and PF is deductible on the basic salary. No other allowances come under the PF arena. The maximum cap is 6500/- of the basic salary. In case any employee receives an increment and post-increment, their basic salary is greater than 6500/-, the employee would have two options: to contribute on the whole basic salary or advise the employer to deduct the PF on the basic salary up to 6500/- amount.
From United States
Acknowledge(0)Amend(0)
Dear all,
A worker is earning Rs. 225/- per day, and for a month he receives Rs. 5850/- per month for 26 working days.
Here we are treating the gross salary into two parts i.e. 60% of the total salary treating as basic & DA. The remaining total 40% of the salary is treated as HRA & other allowances.
60% of the total salary i.e. Basic & DA is considered for PF calculation. 100% of the total salary is considered for ESI calculation.
a) Is this method correct or wrong?
b) According to minimum wages, should the total salary be considered for PF calculation?
Thanks,
Balamurugan
From India, Madras
Acknowledge(0)Amend(0)
A worker is earning Rs. 225/- per day, and for a month he receives Rs. 5850/- per month for 26 working days.
Here we are treating the gross salary into two parts i.e. 60% of the total salary treating as basic & DA. The remaining total 40% of the salary is treated as HRA & other allowances.
60% of the total salary i.e. Basic & DA is considered for PF calculation. 100% of the total salary is considered for ESI calculation.
a) Is this method correct or wrong?
b) According to minimum wages, should the total salary be considered for PF calculation?
Thanks,
Balamurugan
From India, Madras
Acknowledge(0)Amend(0)
hi, Here we have to considered only Basic where other allowances will not comes under basic. Hence PF wages Rs.5000 only DASU.B
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear All,
Currently, we are deducting PF contributions for full Basic + DA (below 6500/- and above) at 12%. However, we are now planning to deduct only for Basic + DA up to 6500/- (above 6500/- Basic + DA ceiling to 6500/- only). Are there any legal obligations regarding this change?
Please advise me on this matter.
Regards,
Ashoka M S
From India, Bangalore
Acknowledge(0)Amend(0)
Currently, we are deducting PF contributions for full Basic + DA (below 6500/- and above) at 12%. However, we are now planning to deduct only for Basic + DA up to 6500/- (above 6500/- Basic + DA ceiling to 6500/- only). Are there any legal obligations regarding this change?
Please advise me on this matter.
Regards,
Ashoka M S
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Bala,
Please go through the recent judgments given by Madras High Court and Madhya Pradesh High Court regarding the inclusion of components into Basic Wages. This would clear your queries. As per earlier and existing practice, only Basic and DA are considered for the calculation of PF contribution.
Regards,
David
From India, Lanjigarh
Acknowledge(0)Amend(0)
Please go through the recent judgments given by Madras High Court and Madhya Pradesh High Court regarding the inclusion of components into Basic Wages. This would clear your queries. As per earlier and existing practice, only Basic and DA are considered for the calculation of PF contribution.
Regards,
David
From India, Lanjigarh
Acknowledge(0)Amend(0)
Dear Mr. David, This is not ruling till date. There are appeal against this. Please correct if I am wrong. Regards, Rahul Bagale
From Korea
Acknowledge(0)Amend(0)
From Korea
Acknowledge(0)Amend(0)
Hi,
Could anyone please let me know about the applicability of ESI to a construction company?
As per my knowledge, ESI is not applicable to construction workers working at the site. However, some ESI inspectors are stating that ESI is applicable to site workers who are involved in activities like painting, electrical work, etc. According to the ESI inspector's observation, they are saying that ESI is not applicable to civil workers only working at the site.
Could you please provide me with any notifications regarding this matter?
Regards, Shyam
From India, Mumbai
Acknowledge(0)Amend(0)
Could anyone please let me know about the applicability of ESI to a construction company?
As per my knowledge, ESI is not applicable to construction workers working at the site. However, some ESI inspectors are stating that ESI is applicable to site workers who are involved in activities like painting, electrical work, etc. According to the ESI inspector's observation, they are saying that ESI is not applicable to civil workers only working at the site.
Could you please provide me with any notifications regarding this matter?
Regards, Shyam
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Seniors,
Example: This is my salary structure working in SW Company:
- Basic: 3575 (55.00%)
- HRA: 1300 (20.00%)
- Conveyance: 488 (7.50%)
- Educational: 162 (2.50%)
- Medical: 325 (5.00%)
- Professional Development: 325 (5.00%)
- LTC: 325 (5.00%)
Total: 6500 (100.00%)
Currently, the employer is deducting PF on Basic, i.e., 12% on 3575 is Rs. 429. The new provided fund rule is expected to affect HRA. Could you please advise on this?
Regards,
Praveen
From India, Hyderabad
Acknowledge(0)Amend(0)
Example: This is my salary structure working in SW Company:
- Basic: 3575 (55.00%)
- HRA: 1300 (20.00%)
- Conveyance: 488 (7.50%)
- Educational: 162 (2.50%)
- Medical: 325 (5.00%)
- Professional Development: 325 (5.00%)
- LTC: 325 (5.00%)
Total: 6500 (100.00%)
Currently, the employer is deducting PF on Basic, i.e., 12% on 3575 is Rs. 429. The new provided fund rule is expected to affect HRA. Could you please advise on this?
Regards,
Praveen
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi,
The recent court judgments are favorable towards establishing fair social security, as there is a perception that PF should be deducted on 12% of basic salary. To minimize implications, many companies have kept the basic salary as low as 1000 INR, thus contributing minimally to social security.
Both court judgments are very positive for ensuring a strong social security system. The judgment can be summarized as whatever your breakup is, PF should be deducted at least on the PF base (Basic + Spl Allowance) of the minimum wages of the state and category (skilled/semiskilled/unskilled).
There are rumors that the PF exemption limit may be raised to 10000 INR initially, bringing it in line with the ESIC cutoff.
Shibu Krishnan
From India, Pune
Acknowledge(0)Amend(0)
The recent court judgments are favorable towards establishing fair social security, as there is a perception that PF should be deducted on 12% of basic salary. To minimize implications, many companies have kept the basic salary as low as 1000 INR, thus contributing minimally to social security.
Both court judgments are very positive for ensuring a strong social security system. The judgment can be summarized as whatever your breakup is, PF should be deducted at least on the PF base (Basic + Spl Allowance) of the minimum wages of the state and category (skilled/semiskilled/unskilled).
There are rumors that the PF exemption limit may be raised to 10000 INR initially, bringing it in line with the ESIC cutoff.
Shibu Krishnan
From India, Pune
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Provident Fund - Excluded Employee - Definition.pdf