Dear All, Please suggest ,I have query,
1. Can PF will be deducted from the Overtime amount or not?
2. Which head is excluded from ESIC and maximum limit of amount.
Thanks in advance for your valuable suggestions.
From India, Noida
91. Can PF will be deducted from the Overtime amount or not?
2. Which head is excluded from ESIC and maximum limit of amount.
Thanks in advance for your valuable suggestions.
From India, Noida
Overtime wages will not qualify for EPF deduction.
But for ESI, the overtime wage will be considered as part of wages. ESI is contributed on gross salary. If you have supplied uniform to the employees, then washing allowance can be excluded from it. Similarly, conveyance allowance shall also be excluded from the ESI qualifying wages,
For coverage of ESI, the salary limit (excluding conveyance allowance and washing allowance) is Rs 21000. But once an employee is covered, his wages including the overtime wages shall be considered for deduction of contribution even if the same exceeds Rs 21000. That is to say, if an employee's salary is Rs 18000 and he is a covered employee and he does overtime and his salary for a particular months becomes Rs 22000. Then for that month Rs 22000 should be considered for contribution of ESI.
An employee whose salary exceeds Rs 21000 during any month in the contribution period should be given coverage till that contribution period ends. There are two contribution periods, ie, April to September and October to March. If an employee's salary becomes Rs 22000 in the month of May, then he should contribute to ESI till Sept.
From India, Kannur
But for ESI, the overtime wage will be considered as part of wages. ESI is contributed on gross salary. If you have supplied uniform to the employees, then washing allowance can be excluded from it. Similarly, conveyance allowance shall also be excluded from the ESI qualifying wages,
For coverage of ESI, the salary limit (excluding conveyance allowance and washing allowance) is Rs 21000. But once an employee is covered, his wages including the overtime wages shall be considered for deduction of contribution even if the same exceeds Rs 21000. That is to say, if an employee's salary is Rs 18000 and he is a covered employee and he does overtime and his salary for a particular months becomes Rs 22000. Then for that month Rs 22000 should be considered for contribution of ESI.
An employee whose salary exceeds Rs 21000 during any month in the contribution period should be given coverage till that contribution period ends. There are two contribution periods, ie, April to September and October to March. If an employee's salary becomes Rs 22000 in the month of May, then he should contribute to ESI till Sept.
From India, Kannur
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