In your one example you have shown after adjusting LOP and bifurcating the remuneration- Basic Salary - 12500, HRA - 8333, Conveyance - 4167, Spl.Allowance -1667 , Total - 41667. In your many past post you have opined to pay PF contribution on monthly gross. As per Apex court verdict Feb,2019 and your example of PF contribution should be on 12,500/- is highly contradictory. In the said example the PF contribution should be on Monthly gross - HRA. If the organization intend to pay on 15,000/- it can restrict on that. I have already mentioned the same example to one of my earlier post.
I am not commenting on your other points as it is not appearing to me in the form of logical inputs.
It is better you stay with your belief and let the members decide the right path and if any other learned member is interested to add something , please do the same.
I will stop at this stage to comment further regarding this issue.
Thanks Mr. Madhu T K for all these interactions.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
335I am not commenting on your other points as it is not appearing to me in the form of logical inputs.
It is better you stay with your belief and let the members decide the right path and if any other learned member is interested to add something , please do the same.
I will stop at this stage to comment further regarding this issue.
Thanks Mr. Madhu T K for all these interactions.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Yes, I do agree that PF should be paid on total salary. Still I say the same only. Along with that you should also consider the fact that EPFO has no right to demand contribution on a salary above Rs 15000.
Now coming to the example, when PF is restricted to Rs 15000, that is the PF qualifying salary. It does not mean that when the employee is on Leave Without Pay, the contribution should be on the same amount of salary, ie, Rs 15000 but on earned salary, ie, Rs 12500, in the example.
I repeat that in respect of employees whose gross salary is more than Rs 15000, the same is the PF qualifying salary. There is no mention about how much is the gross salary. When salary is Rs 15000, the loss of pay should be proportionately deducted from that amount only. This is because the gross salary does not come in the picture at all. At the same time, if the ceiling is removed, the gross salary should qualify for PF contributions.
I don't find any contradictory statements.
From India, Kannur
Now coming to the example, when PF is restricted to Rs 15000, that is the PF qualifying salary. It does not mean that when the employee is on Leave Without Pay, the contribution should be on the same amount of salary, ie, Rs 15000 but on earned salary, ie, Rs 12500, in the example.
I repeat that in respect of employees whose gross salary is more than Rs 15000, the same is the PF qualifying salary. There is no mention about how much is the gross salary. When salary is Rs 15000, the loss of pay should be proportionately deducted from that amount only. This is because the gross salary does not come in the picture at all. At the same time, if the ceiling is removed, the gross salary should qualify for PF contributions.
I don't find any contradictory statements.
From India, Kannur
As per my understanding we pay wages as per the attendance therefore the PF should be made (PF wages/30* working days). If PF wages is restricted to 15K then we have to calculate the PF contribution as if his wages is 15K even if his gross salary is more.
As in the referred case the employee has 5 days LOP therefore in the ECR, the NCP (Non contributing period) days will be 5, these 5 days will not be considered for PF contribution. If the leave days are approved then PF will be calculated on full ceiling limit and NCP days will be 0. In that case full ceiling limit will be considered for PF contribution.
From India, Bhubaneswar
As in the referred case the employee has 5 days LOP therefore in the ECR, the NCP (Non contributing period) days will be 5, these 5 days will not be considered for PF contribution. If the leave days are approved then PF will be calculated on full ceiling limit and NCP days will be 0. In that case full ceiling limit will be considered for PF contribution.
From India, Bhubaneswar
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