dcpl Started The Discussion:
If an employee is absent (leave without pay) for say 6 days in a month. The gross salary would be reduced at a pro-rata basis accordingly. Due to this the PF contribution for that particular month also goes down. The local PF inspector claims that the PF contribution cannot be lowered. Doesnt make sense, can somebody help?
17th August 2006 From India, Vadodara

Hi,
I dony knowhow come the PF person is saying that it would not go down.
You are absolutely correct as per the Law the PF will be calculated on the
reduced monthly salary.
There is nothing written in any of the books related to PF contribution that the PF will not be reduced if the person id on Leave without pay, Ask him/ her for clarification and by the time take the photocopy of this act from PF Act.
Cheers
Archna
17th August 2006 From India, Delhi
hrg 2
hi
The PF authority claim is not sustainable.
Sec 2[b] defines 'basic wages' .It means all emoluments which are earned by an employee while on duty".
Therefore when an employee is on loss of pay,he does not earn any salary, therefore no contributions are liable to be deducted/paid.
hrg-rajaram
17th August 2006 From United States
As per section 2 (b) Basic Wages means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case.
It is clear that it will be applicable only on earned wages for the month.
It seems the PF inspector is misleading you.
You be firm on your point & if inspector insist, you ask him to give him in writing.
N N Tiwari
17th August 2006 From India, New Delhi
Do'nt ask for writing. These people can write all sort of bullshit. Instead ask for a copy of such notification or schedule that mentions that PF shall not be paid on BASIC paid during that wage period or that it cannot be lowered. That'll solve ur problem.
17th August 2006
Please share if you have any insights for this topic page and be part of our fostered professional community at Cite.Co. Avoid "Thank You" posts to preserve the integrity and readability of this page. Instead, help someone else with your knowledgeable inputs. If you have any related query please start a discussion thread.



 
 
 
 





Anonymous (Don't Display Username)


Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network