Dear All,
The PF office has issued guidelines regarding the definition of Basic wages. Contributions will now be based on Basic wages plus all allowances. Be prepared to take on additional liability for PF contributions.
Regards,
Vinod Bidwaik
From India, Pune
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131The PF office has issued guidelines regarding the definition of Basic wages. Contributions will now be based on Basic wages plus all allowances. Be prepared to take on additional liability for PF contributions.
Regards,
Vinod Bidwaik
From India, Pune
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Madhu, PFA the circular from EPF..(Ref point no 12) Regards Madhan
From India, Delhi
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From India, Delhi
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Dear Madhan, Please define, is this have any impact on para 26A of PF scheme. Regards, Pushkar Bisht
From India, Delhi
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From India, Delhi
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Thank you for the valuable information.
With warm regards,
Faruk Shaikh
Assistant Manager - Human Resources
Span Diagnostics Limited | Plot No. 336-338-340, Road No. 3, GIDC, Sachin - 394 230, Surat, Gujarat, India
Phone: +91-261-239 7712 | Fax: +91-261-239 7719 | Website: [Span Diagnostics Ltd.](http://www.span.co.in) | Email: [hr.er@span.co.in](mailto:hr.er@span.co.in)
From India, Mumbai
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With warm regards,
Faruk Shaikh
Assistant Manager - Human Resources
Span Diagnostics Limited | Plot No. 336-338-340, Road No. 3, GIDC, Sachin - 394 230, Surat, Gujarat, India
Phone: +91-261-239 7712 | Fax: +91-261-239 7719 | Website: [Span Diagnostics Ltd.](http://www.span.co.in) | Email: [hr.er@span.co.in](mailto:hr.er@span.co.in)
From India, Mumbai
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(b) “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, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments 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
But in the notification only Discussion about Commission & any other similar allowance. Means if company are paying House rent allowance, Overtime allowance , it will be not come under PF deduction, If company give any other allowance than it will be come unde PF deduction.
Am I right ? Please reply
Regards
Mukund
From India, Delhi
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case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments 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
But in the notification only Discussion about Commission & any other similar allowance. Means if company are paying House rent allowance, Overtime allowance , it will be not come under PF deduction, If company give any other allowance than it will be come unde PF deduction.
Am I right ? Please reply
Regards
Mukund
From India, Delhi
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Even though the circular intends to include various allowances within the definition of basic wages under Sec. 2(b), the contributions will be computed on the wage limit of Rs. 6500/- per month only. Hence, it may have no sweeping effect from the employer's point of view. However, HRA, O.T, commission, and bonus will stand excluded.
B. Saikumar
HR & Labor Law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & Labor Law Advisor
Mumbai
From India, Mumbai
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Dear All,
There is a proposal to increase the ceiling amount from Rs. 6500/- to Rs. 10,000/- and with a minimum pension of Rs. 1,000/-. However, the latest circular does not mention the increase in the ceiling amount. This means that if the basic amount is more than Rs. 6500/-, then the latest circular does not have any impact. If the basic amount is less than Rs. 6500/-, then the allowances as noted in the latest circular will be considered up to a ceiling of Rs. 6500/- only to arrive at the PF amount.
Rgds V. Padmanabha HR Manager
From India, Bangalore
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There is a proposal to increase the ceiling amount from Rs. 6500/- to Rs. 10,000/- and with a minimum pension of Rs. 1,000/-. However, the latest circular does not mention the increase in the ceiling amount. This means that if the basic amount is more than Rs. 6500/-, then the latest circular does not have any impact. If the basic amount is less than Rs. 6500/-, then the allowances as noted in the latest circular will be considered up to a ceiling of Rs. 6500/- only to arrive at the PF amount.
Rgds V. Padmanabha HR Manager
From India, Bangalore
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Thank you for sharing the EPF Circular. Can anyone tell from which date (approximately) it is effective? As per the circular, there is an enquiry report to be submitted by the RPFC for consideration of the Compliance Officers.
From India, Hyderabad
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From India, Hyderabad
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Dear Pushkar,
The consideration of Basic Wages shall have all allowances clubbed in, which are being paid on a monthly basis, but if not exceeding the ceiling limit i.e., 6500. Does this mean the ceiling is still the same, i.e., 780 on 6500?
In addition, please clarify if this is applicable to all types of industries and companies.
Thanks and Regards,
Shubha Gupta
HR Manager
Robosoft Solutions Pvt. Ltd.
From India, Calcutta
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The consideration of Basic Wages shall have all allowances clubbed in, which are being paid on a monthly basis, but if not exceeding the ceiling limit i.e., 6500. Does this mean the ceiling is still the same, i.e., 780 on 6500?
In addition, please clarify if this is applicable to all types of industries and companies.
Thanks and Regards,
Shubha Gupta
HR Manager
Robosoft Solutions Pvt. Ltd.
From India, Calcutta
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf