Suppose an employee has a basic salary of 500,000/= and is present for 1 day, so their payable basic salary is more than 15,000. Now, the Provident Fund (PF) deduction is 1,800, which is fine, but there is confusion about the Non-Contributory Payroll (NCP) days. Should I consider the NCP days as 1 or 30/31 since we are deducting PF with a ceiling of 15,000? Please help. Thanks in advance.
From India, Mumbai
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Dear Tarun,

NCP days are not mentioned in the PF Challan. NCP days have to be mentioned in the ECR against the respective member's name. The number of days for which the member was not paid salary should be noted in the NCP column.

NCP stands for Non-Contributory Pay Days/Loss of Pay Days.

From India, New Delhi
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Dear Srinath, i agree with you completely. my problem is should i mentioned 29 days in ECR file or 0, because it will impact the retirement benefits of employee.
From India, Mumbai
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Dear Mr. Tarun,

I regret that you have not understood my reply in the proper perspective. The way you have framed the question is unclear. Suppose an employee has a basic salary of 5,00,000/= and is present for 1 day, then their payable basic should be more than 15,000. NCP needs to be mentioned for 1 day out of the total days in the month.

Regarding PF, the contribution is 1800, which is clear. However, I am confused about the NCP days. The maximum contribution for EPS is presently Rs15,000/- per month. As per your example, it seems there will be no impact on the pension.

Is this a hypothetical question? Please revert if you still have any queries. NCP days are required for EPF as well to determine the length of membership.

Thank you.

From India, New Delhi
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Sir,

If one person works for 5 days in a particular month, then what are the NCP days we have to put in our ECR? Suppose the month is 30 days, then our NCP calculation is 30 days - 5 working days = 25 days or 26 days - 5 working days = 21 days. Please explain.

From India, Bhubaneswar
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Dear Friend,

NCP means Non-Contributory Pay details to be mentioned in terms of days from the perspective of EPS contribution. The number of days for which an employee has not earned salary in a particular month has to be entered in ECR. For how many days an employee has worked is not the criteria. For how many days an employee has not earned salary in a particular month.

Hope this clarification will suffice.

From India, New Delhi
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Employee NCP days are 15 for August. I have given a gross wage of Rs 2,708/-. My question now is, what will be the per day minimum wage calculation from the PF department for this case? Will it be 2708/(31-15) = 180.533 or 2708/(27-15) = 225.666 or something else?
From India
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