Dear Sir, But Section-7 Says that pf should deduct on Basic+VDA I am confused
From India, Jaipur
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From India, Jaipur
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Dear Colleagues,
Hope you are doing well! Please help me with your valuable advice on the below matter:
Q1. The query is for those employers who treat the PF dues on the basis of Rs. 15,000 limit on EPF wages and not the entire amount. In an example of such an employer, if some employee has PF wages defined as, say, Rs. 50,000 per month. If such an employee is on Loss of Pay for 15 days out of 30 in April, what is the PF deduction and contribution?
- Is it based on the fact that since the employee is paid Rs. 25,000 for that month (15/30 x 50,000), the PF should be 12% of 15,000 (the lower of 15,000 and 25,000), i.e., Rs. 1,800 OR
- Should it be computed as PF wages are 15,000 (the lower of 50,000 and 15,000), and PF wages prorated as per LOP days are 15/30 of Rs. 1,800, i.e., Rs. 900?
Q2. The query is for those employers who treat the PF dues on the basis of the entire amount. In an example of such an employer, if some employee has PF wages defined as, say, Rs. 50,000 per month. If such an employee is on Loss of Pay for 15 days out of 30 in April, what should be the EPF wages? 50,000 or 25,000 or 15,000?
Thank you.
From India, Gurgaon
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Hope you are doing well! Please help me with your valuable advice on the below matter:
Q1. The query is for those employers who treat the PF dues on the basis of Rs. 15,000 limit on EPF wages and not the entire amount. In an example of such an employer, if some employee has PF wages defined as, say, Rs. 50,000 per month. If such an employee is on Loss of Pay for 15 days out of 30 in April, what is the PF deduction and contribution?
- Is it based on the fact that since the employee is paid Rs. 25,000 for that month (15/30 x 50,000), the PF should be 12% of 15,000 (the lower of 15,000 and 25,000), i.e., Rs. 1,800 OR
- Should it be computed as PF wages are 15,000 (the lower of 50,000 and 15,000), and PF wages prorated as per LOP days are 15/30 of Rs. 1,800, i.e., Rs. 900?
Q2. The query is for those employers who treat the PF dues on the basis of the entire amount. In an example of such an employer, if some employee has PF wages defined as, say, Rs. 50,000 per month. If such an employee is on Loss of Pay for 15 days out of 30 in April, what should be the EPF wages? 50,000 or 25,000 or 15,000?
Thank you.
From India, Gurgaon
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We have started a new business with a team of 7 employees, and we are expecting to have 20 or more employees in the next couple of months. Currently, we do not have a GST registration yet. Could anyone provide information on how the payslip should be structured? Is it possible to avoid ESI deduction and instead provide medical insurance for the employees?
We are planning to calculate the following components in the salary structure: Basic salary, HRA, conveyance allowance, education allowance, employer's contribution to PF, employee's contribution to PF, ESI, and professional tax.
From India, Vijayawada
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We are planning to calculate the following components in the salary structure: Basic salary, HRA, conveyance allowance, education allowance, employer's contribution to PF, employee's contribution to PF, ESI, and professional tax.
From India, Vijayawada
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Dear Colleague,
ESI is not an option, but it is a mandatory requirement if you have employees whose salary is up to 21k. If all your 20 employees earn above 21k, then you may be excluded from ESI coverage. Check with your nearest Local Office to see if your location/area/revenue village is notified for ESI coverage. Then proceed in consultation with the ESI Corporation.
In the case of PF, all employees who earn wages up to 15K should be covered under PF. The deduction for PF should be based on Basic + DA + Retaining allowance, and to reach 15K, any other allowance commonly extended to all employees should also be added.
From India, Chennai
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321ESI is not an option, but it is a mandatory requirement if you have employees whose salary is up to 21k. If all your 20 employees earn above 21k, then you may be excluded from ESI coverage. Check with your nearest Local Office to see if your location/area/revenue village is notified for ESI coverage. Then proceed in consultation with the ESI Corporation.
In the case of PF, all employees who earn wages up to 15K should be covered under PF. The deduction for PF should be based on Basic + DA + Retaining allowance, and to reach 15K, any other allowance commonly extended to all employees should also be added.
From India, Chennai
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