Hi Everybody,
I have gone through everybody's reply; let me clarify a bit more A/c wise.
A/c 1... 15.67% (12% employee share + 3.67% employer share)
A/c 10... 8.33% (Employer share)
A/c 2... 1.10% of wages (Basic + DA)
A/c 21... 0.5% ---do-----
A/c 22... 0.01% ----do-----(subject to a minimum of Rs. 2/-)
Here I am facing a problem also; please do let me know if anyone can help me in this regard. Can anyone guide me on what wages PF is applicable to? So far, my knowledge says it is on normal wages only as mentioned in the above replies. However, we are being asked by PF Authorities to deposit the Contribution on OT Wages also (wherever paid), both Employees' and Employers' share in arrears with Interest and Damages. They are framing us under Sec 7A, Evasion of wages.
Can anyone help us in this matter? How is OT being calculated for PF Contribution and being framed as Evasion of wages? An early reply will be highly appreciated.
Thanks
Regards,
Harminder Singh
From India, Raurkela
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9I have gone through everybody's reply; let me clarify a bit more A/c wise.
A/c 1... 15.67% (12% employee share + 3.67% employer share)
A/c 10... 8.33% (Employer share)
A/c 2... 1.10% of wages (Basic + DA)
A/c 21... 0.5% ---do-----
A/c 22... 0.01% ----do-----(subject to a minimum of Rs. 2/-)
Here I am facing a problem also; please do let me know if anyone can help me in this regard. Can anyone guide me on what wages PF is applicable to? So far, my knowledge says it is on normal wages only as mentioned in the above replies. However, we are being asked by PF Authorities to deposit the Contribution on OT Wages also (wherever paid), both Employees' and Employers' share in arrears with Interest and Damages. They are framing us under Sec 7A, Evasion of wages.
Can anyone help us in this matter? How is OT being calculated for PF Contribution and being framed as Evasion of wages? An early reply will be highly appreciated.
Thanks
Regards,
Harminder Singh
From India, Raurkela
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Dear Anita,
Please understand the whole process of PF & ESIC by reading the books available in the market. Senior persons will guide you on any matter in your career that can help solve your problems. However, for this, you have to put in extra effort for your basic preparation in any subject.
The answer to your question is that there are deductions of PF & ESIC contributions from employees' salaries. When depositing the share of PF & ESIC via challans, employers' contributions are calculated (for PF 13.61% & ESIC 4.75%) and both the shares (employee & employer) are deposited in the bank. PF is divided into five accounts: A/c1 (3.67% & 12%), A/c2 (1.10%), A/c10 (8.33%), A/c21 (0.5%), and A/c22 (0.01%).
To understand these calculations, you will have to prepare challans of your organization by yourself. Get them checked by your senior or consultant because there are very small details to consider in these calculations.
Vinay Shedge
9850062122
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Please understand the whole process of PF & ESIC by reading the books available in the market. Senior persons will guide you on any matter in your career that can help solve your problems. However, for this, you have to put in extra effort for your basic preparation in any subject.
The answer to your question is that there are deductions of PF & ESIC contributions from employees' salaries. When depositing the share of PF & ESIC via challans, employers' contributions are calculated (for PF 13.61% & ESIC 4.75%) and both the shares (employee & employer) are deposited in the bank. PF is divided into five accounts: A/c1 (3.67% & 12%), A/c2 (1.10%), A/c10 (8.33%), A/c21 (0.5%), and A/c22 (0.01%).
To understand these calculations, you will have to prepare challans of your organization by yourself. Get them checked by your senior or consultant because there are very small details to consider in these calculations.
Vinay Shedge
9850062122
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(Fact Checked)-[response] The PF is applicable on basic wages, dearness allowance, and retaining allowance. Overtime wages are included for PF calculation. (1 Acknowledge point)