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 the 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 (lower of 15,000 and 25,000), i.e., Rs. 1,800 OR
- Should it be computed as PF wages are 15,000 (lower of 50,000 and 15,000) and PF wages pro-rated as per LOP days is 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 for your assistance in clarifying these matters. Your input is greatly appreciated.
Best regards,
[Your Name]
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 the 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 (lower of 15,000 and 25,000), i.e., Rs. 1,800 OR
- Should it be computed as PF wages are 15,000 (lower of 50,000 and 15,000) and PF wages pro-rated as per LOP days is 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 for your assistance in clarifying these matters. Your input is greatly appreciated.
Best regards,
[Your Name]
From India, Gurgaon
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What is wages defined?
What is the lower of ... and ...?
If your employee's PF qualifying salary is Rs 50,000, and that employee is on loss of pay leave, then the PF will be calculated on the reduced salary based on Rs 50,000. On the other hand, if your employee's salary is Rs 50,000, but you contribute a maximum of Rs 15,000, then your PF qualifying salary is Rs 15,000. If an employee is on LOP, the proportionate reduction for the purpose of computing PF should be from Rs 15,000 and not from Rs 50,000.
If you have any additional information, please post it clearly.
From India, Kannur
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4768What is the lower of ... and ...?
If your employee's PF qualifying salary is Rs 50,000, and that employee is on loss of pay leave, then the PF will be calculated on the reduced salary based on Rs 50,000. On the other hand, if your employee's salary is Rs 50,000, but you contribute a maximum of Rs 15,000, then your PF qualifying salary is Rs 15,000. If an employee is on LOP, the proportionate reduction for the purpose of computing PF should be from Rs 15,000 and not from Rs 50,000.
If you have any additional information, please post it clearly.
From India, Kannur
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Hi,
I have one doubt: when we talk about Gross Salary or Wages in ECR, does it mean the gross salary of the particular month? For example, in case of absence, salary will be deducted, and therefore the gross amount can change according to the attendance.
From India, Gurgaon
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I have one doubt: when we talk about Gross Salary or Wages in ECR, does it mean the gross salary of the particular month? For example, in case of absence, salary will be deducted, and therefore the gross amount can change according to the attendance.
From India, Gurgaon
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In ECR the gross salary means the actual salary payable for the month.
From India, Kannur
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From India, Kannur
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Hi,
As per the PF Act, except for HRA, all other components should be taken into consideration for PF wage. If the wage exceeds the PF ceiling, i.e., Rs. 15,000, only pay for the PF ceiling (15,000 * 12% = 18000). In the case of loss of pay (LOP), pay for earned wages.
From India, Madras
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As per the PF Act, except for HRA, all other components should be taken into consideration for PF wage. If the wage exceeds the PF ceiling, i.e., Rs. 15,000, only pay for the PF ceiling (15,000 * 12% = 18000). In the case of loss of pay (LOP), pay for earned wages.
From India, Madras
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Gross Salary(1).xls