hi All,
I have a typical Scenario :
An employee with Basic + DA =6500, his PF deduction in the month of jan was full 780 and employer contri was 541
in the month of feb, he had 5 days of Leave without pay. so his Basic + DA = 5417 and PF deduction was 650. employer contri was 451
now in the month of march, his last month's 5 days Leave without pay got approved and he got the money for that, means his basic+DA for the month of march was 7583, what will be Er.PF deduction in this case???
also should in the month of march, employer contributuion will be limit to 541 or not.
please help
Regards,
Aman
From India, Pune
I have a typical Scenario :
An employee with Basic + DA =6500, his PF deduction in the month of jan was full 780 and employer contri was 541
in the month of feb, he had 5 days of Leave without pay. so his Basic + DA = 5417 and PF deduction was 650. employer contri was 451
now in the month of march, his last month's 5 days Leave without pay got approved and he got the money for that, means his basic+DA for the month of march was 7583, what will be Er.PF deduction in this case???
also should in the month of march, employer contributuion will be limit to 541 or not.
please help
Regards,
Aman
From India, Pune
Dear Mr. Aman,
Normally the deduction of salary on account of LWP should not be again granted afterwards. Since salary is being prepared on the basis of attendance of an employee marked in the muster roll. Incase the same is sanctioned afterwards it will create a problem in salary preparation either you have tamper the muster roll or the salary master data in the pay-roll package. Please keep in mind that once the attendance for a particular month is freezed the same should not be tampered. Moreover you can't justify the increase in basic or DA for a particular month. Hence, this is not legally acceptable.
However, you can show the increased figure in Form-3A as you have already paid extra salary for 5 days in the month of March.
regards,
manoranjan
From India, Delhi
Normally the deduction of salary on account of LWP should not be again granted afterwards. Since salary is being prepared on the basis of attendance of an employee marked in the muster roll. Incase the same is sanctioned afterwards it will create a problem in salary preparation either you have tamper the muster roll or the salary master data in the pay-roll package. Please keep in mind that once the attendance for a particular month is freezed the same should not be tampered. Moreover you can't justify the increase in basic or DA for a particular month. Hence, this is not legally acceptable.
However, you can show the increased figure in Form-3A as you have already paid extra salary for 5 days in the month of March.
regards,
manoranjan
From India, Delhi
If employee's salary is Rs 6500 and his contribution to PF is Rs 780, the employer's contribution should also be Rs 780 but of this Rs 541 will go to Pension Fund and the rest Rs 239 will go to PF.
Now, if in any month leave is not approved and loss of pay for 5 days are involved, the salary paid will be less and accordingly the contribution will also be less, like that in the instant case, it is Rs 650. And if the leave is regularised later on (there is no illegality in paying salary withheld for want of approval or explanation from the employee in the subsequent month) and salary paid crosses the limit, the employer can deduct PF on such increased salary (ie, salary + arrears of salary) and there is nothing wrong in depositing the contribution as:
EPF - 910 (12% of 7583) + 278
EPS - 632 (8.33% of 7583)
In the annual return EPS account will tally with figure taken at the rate of Rs 6500.
Invariably, if you do not think that Pension fund should not exceed Rs 541 at any cost ( I do not think that a month there will be any problem since on reconcilation the amount will tally) then you can deposit as:
EPF - 910 + 369 ( difference between EPS and total contribution)
EPS 541.
Regards,
Madhu.T.K
From India, Kannur
4250Now, if in any month leave is not approved and loss of pay for 5 days are involved, the salary paid will be less and accordingly the contribution will also be less, like that in the instant case, it is Rs 650. And if the leave is regularised later on (there is no illegality in paying salary withheld for want of approval or explanation from the employee in the subsequent month) and salary paid crosses the limit, the employer can deduct PF on such increased salary (ie, salary + arrears of salary) and there is nothing wrong in depositing the contribution as:
EPF - 910 (12% of 7583) + 278
EPS - 632 (8.33% of 7583)
In the annual return EPS account will tally with figure taken at the rate of Rs 6500.
Invariably, if you do not think that Pension fund should not exceed Rs 541 at any cost ( I do not think that a month there will be any problem since on reconcilation the amount will tally) then you can deposit as:
EPF - 910 + 369 ( difference between EPS and total contribution)
EPS 541.
Regards,
Madhu.T.K
From India, Kannur
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PROVIDENT FUND CALCULATION.xls
PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf