Can anybody clarify whether PF contribution to be deducted on overtime I feel there is no deduction of PF on overtime Please clear my doubts Thanks friends s.s.kumar
From India, New Delhi
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2From India, New Delhi
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Hi PF is two side employer & employee EPF EMPLOYERS 12% + EMPLOYEES 3.67% on the basic & ESIC is calulated on the Gross salary
From India, Mumbai
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From India, Mumbai
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Hi, I hope Ms Sujata gave u clear picture as PF is applicable only to Basic + DA and ESIC is deducted on Gross Salary . Definately PF is not decuctible on OT. Cheers, Ajay
From India, Bangalore
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From India, Bangalore
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Dear All,
Yes, Provident Fund is a contribution by the employee and an equal contribution by the employer, subject to the statute, Basic Earnings, Voluntary Contribution of the employee, and the Employer. The statutory deduction depends on the Basic Earn, which is 12% for the employee and an equal contribution by the employer. Thus, now the contribution deducted, i.e., 24%, is deposited in 12% (Employee Contribution) + 8.33% (Employer Contribution) in the Employee PF account, and the rest amount in the Pension Fund. In any case, if the employee's basis is more than Rs. 6500/-, then the Pension Contribution will be capped at 541 only, and the remaining amount will be deposited in the Employee PF account with their contribution of 12% and 8.33%.
Hope the same is clear.
Regards,
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Yes, Provident Fund is a contribution by the employee and an equal contribution by the employer, subject to the statute, Basic Earnings, Voluntary Contribution of the employee, and the Employer. The statutory deduction depends on the Basic Earn, which is 12% for the employee and an equal contribution by the employer. Thus, now the contribution deducted, i.e., 24%, is deposited in 12% (Employee Contribution) + 8.33% (Employer Contribution) in the Employee PF account, and the rest amount in the Pension Fund. In any case, if the employee's basis is more than Rs. 6500/-, then the Pension Contribution will be capped at 541 only, and the remaining amount will be deposited in the Employee PF account with their contribution of 12% and 8.33%.
Hope the same is clear.
Regards,
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It has been made quite clear that PF is recovered on Basic wages and DA.
However, I have come to know that in some cases, Enforcement Officers (E.O) are forcing employers to deposit PF on overtime (OT) when the employer has paid more than 50 hours of OT in a quarter.
There is still uncertainty about whether to deposit PF on OT or not. Can anybody clarify this?
Regards,
Harminder
From India, Raurkela
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However, I have come to know that in some cases, Enforcement Officers (E.O) are forcing employers to deposit PF on overtime (OT) when the employer has paid more than 50 hours of OT in a quarter.
There is still uncertainty about whether to deposit PF on OT or not. Can anybody clarify this?
Regards,
Harminder
From India, Raurkela
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Hi All,
We calculate OT as follows: (Basic + HRA + Adhoc Allow) x 2 x No. of OT hrs. If PF is calculated on Basic, then I believe PF must be applicable on OT as well. Requesting seniors to please clarify.
Regards,
Beena
From India, Pune
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We calculate OT as follows: (Basic + HRA + Adhoc Allow) x 2 x No. of OT hrs. If PF is calculated on Basic, then I believe PF must be applicable on OT as well. Requesting seniors to please clarify.
Regards,
Beena
From India, Pune
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As I said earlier, NO PF is deducted on OT wages. It is only when a worker has worked more than 50 hours of OT in a quarter that the Enforcement Officer insists on depositing PF contributions on OT wages. Can anybody clarify if this is included in the PF act?
Regards, Harminder
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From India, Raurkela
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Regards, Harminder
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From India, Raurkela
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Hi a small query- say if the quartely overtime is more than 50 hrs then? Will the PF on OT will be applicable? Regards Monica
From India, New Delhi
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From India, New Delhi
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[QUOTE=malikjs;599182]
Dear Malik Jee,
As it is well known and, to the best of my knowledge, PF is applicable on normal wages (Basic+DA) only. However, we are now being instructed by PF Authorities to also deposit the contribution on OT wages. This includes both the employees' and employers' share in arrears, along with interest and damages. We are being accused of evasion of wages under Sec 7A.
Can anyone provide assistance in this matter? How is OT considered as part of wage evasion? Can you provide any rules or regulations that state that no PF contribution is applicable on OT?
Thanks and Regards,
Harminder Singh
From India, Raurkela
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Dear Malik Jee,
As it is well known and, to the best of my knowledge, PF is applicable on normal wages (Basic+DA) only. However, we are now being instructed by PF Authorities to also deposit the contribution on OT wages. This includes both the employees' and employers' share in arrears, along with interest and damages. We are being accused of evasion of wages under Sec 7A.
Can anyone provide assistance in this matter? How is OT considered as part of wage evasion? Can you provide any rules or regulations that state that no PF contribution is applicable on OT?
Thanks and Regards,
Harminder Singh
From India, Raurkela
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Dear Prabhakar,
Can you cite any rule? We are directly affected by this clause as we are being asked to deposit PF on OT wages with arrears, employees/employers share, and are framed under Sec 7A for evasion of wages. I will be thankful for an early response.
Regards,
Harminder
From India, Raurkela
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Can you cite any rule? We are directly affected by this clause as we are being asked to deposit PF on OT wages with arrears, employees/employers share, and are framed under Sec 7A for evasion of wages. I will be thankful for an early response.
Regards,
Harminder
From India, Raurkela
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