Please help me understand if we need to pay PF Contribution on VDA or HRA. I am a contractor working with Voltas in Hyderabad, Telangana State. The compliance officer asked me to pay PF on the basic earnings + VDA, but I don't have VDA in my Payroll. Instead, I have HRA in my Payroll. Can you please guide me on the correct rules for paying PF?
From India, Mumbai
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From India, Mumbai
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Dear Wasique,
PF contribution has to be made on Basic+VDA as suggested by the Compliance officer. VDA or DA should be included in the payroll. Otherwise, ensure you pay the minimum wage in your organization. If the components are not considered, the amount of the minimum wage has to be ensured. It is always advisable to pay as per the Minimum Wage Act with the structure designed as mentioned in the Statutory enactments.
Go through the PF act for the exact definition of wages; it states that wages include Basic+DA.
From India, Hyderabad
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211PF contribution has to be made on Basic+VDA as suggested by the Compliance officer. VDA or DA should be included in the payroll. Otherwise, ensure you pay the minimum wage in your organization. If the components are not considered, the amount of the minimum wage has to be ensured. It is always advisable to pay as per the Minimum Wage Act with the structure designed as mentioned in the Statutory enactments.
Go through the PF act for the exact definition of wages; it states that wages include Basic+DA.
From India, Hyderabad
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Thank you, Venkata Sir. Could you please provide the PF enactment website link where we can find information as suggested by you.
One more thing I need to understand is if a laborer has a salary of Rs. 8000 per month, what should the VDA be fixed at? Please help me understand this with a simple example.
Thanks once again.
From India, Mumbai
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One more thing I need to understand is if a laborer has a salary of Rs. 8000 per month, what should the VDA be fixed at? Please help me understand this with a simple example.
Thanks once again.
From India, Mumbai
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Dear Wasique, Please check the Telanagana Minimum wages and the unskilled labour get a basic of Rs.5579/- and rest is VDA. Minimum wage is not Rs.8,000/- but even more than it.
From India, Hyderabad
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From India, Hyderabad
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I really appreciate your quick and valuable information.
Sir, could you please provide a step-by-step procedure on how to pay arrears to the EPF portal? I need to pay the PF contribution on VDA because I have only paid contributions based on basic earnings. Kindly guide me through the process.
Thank you for your cooperation.
Wasique
Hyderabad
From India, Mumbai
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Sir, could you please provide a step-by-step procedure on how to pay arrears to the EPF portal? I need to pay the PF contribution on VDA because I have only paid contributions based on basic earnings. Kindly guide me through the process.
Thank you for your cooperation.
Wasique
Hyderabad
From India, Mumbai
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E compliance.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls