avinash-babbi1
15

Dear All,
when you make payment for maternity benefit,should the PF contribution & esi contribution be deducted from the gross salary of the employee for 84 days ?
In my opinion this is not permissible under the provisions of the act,but to make this opinion concrete i would to take note of opinion of you all?
Kindly advise .
Regards,AS

From India, Rohtak
purabi@orchidpharma.com
Dear Avinash,
As per my knowledge, if the female employee is under ESI, she will not get any maternity benefit from the organization, but from the ESIC. In that case, you can not deduct her PF & ESI contribution. But if she is not covered under ESI, you need to pay her salary for maternity leave period(84 days).In that case you have to deduct her PF,PTax (standard deduction) from her gross salary.
Regards,
PSB

From India, Madras
R.N.Khola
363

Dear AS, In my opinion ESI & PF will be deducted on the maternity leaves. Regards, R.N.Khola (Labour Law & Legal Consultants) 09810405361
From India, Delhi
malikjs
167

dear AS
purabi has replied your query logically.if she will get maternity benefit under
maternity benefit act than she is not a member of ESI.so ESI will not be deducted only PF will be deducted.if she is covered under ESIn ,no payment will be made by employer so there will not be any deduction of PF and ESI.
tks
j s malik

From India, Delhi
avinash-babbi1
15

But maternity benefit act says deductions of any form even related to the fund is not permissible ,how come pf & esi deduction can be made? I have raised this here on cite hr because i had word with my payroll manager on this,he says for deduction and the acts it should not be deducted ?
Pl go through the act and comment on this ?

From India, Rohtak
jalasayanan
3

Pls read "deduction in any form" as "Deduction in any form, save as otherwise provided by law"
Deductions in Maternity benefit can happen on two ways.
1. All legal deductions made immediately - if the company is on monthly IT deduction then IT, PF
2. Certain deductions can be deferred till the employee joins - like IT probably, loans, recovery of advances paid.
Idea is to provide enough money for complexities related to maternity but not violation of contributions to be made legally.
Any contribution that are legally stipulated are to made unless specifically excluded.

From India, Madras
Rajesh Sarao
Dear All, Opinions are not law, hence pl do talk about law point only. Whether PF is to be deducted or not. With regards, Rajesh Sarao 9816615455
From India, Velluru
prashant1314
46

1) Salary By Comany - There is no need to deduct PF & ESI for the same . If you are having any Maternity Benefit policy then salary will be paid by the insurance company so no question of deductions of any statutory deductions at all.
2) Salary by ESI - As it is paid by ESI & not by Company no question of any Deductions.
Only employer has to pay Maternity Bonus ( One time ). As this is not per month payment no question of ESI , As this is not basic wages so question of PF at all.
In case of any query please do call Prashant -9850401160

From India, Pune
geetaj@grrpl.com
hi all,
please refer taxmann's STATUTORY MANUAL WITH STUTORY RULES 2006, page 1204, its clearly states that, a women who is not covered under esic is entitled for the payment which inclues basic salary + dearness allowance + hra and incetive bonus. i,e regular monthly salary.
But it does not includes followin:
1) any bonus other than incentive bonus
2) overtime earnings & any deduction or payment on a/c of fines
3) any contirbution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force and
4) any gratuity payable on ther termination of service.
I hope this will clear the doubt.
Regards,
Geeta

From India, Mumbai
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