PF cannot be deducted on overtime allowances.
Fore detail information: White Eagle: Provident fund and Overtime Allowances
From India, Hyderabad
22Fore detail information: White Eagle: Provident fund and Overtime Allowances
From India, Hyderabad
Dear All
I want to tell u that PF deduction is applicable on ot amount also
Accordinbg to section 2 1952 Act If u have no written permission of chief inspector of factriate then u will have to pay PF cont on whole ot amount
Shalu
From India, Delhi
I want to tell u that PF deduction is applicable on ot amount also
Accordinbg to section 2 1952 Act If u have no written permission of chief inspector of factriate then u will have to pay PF cont on whole ot amount
Shalu
From India, Delhi
Dear Mr. Harminder,
The Section 6 of The Employees Provident Fund and Miscellaneous Provisions Act 1952, the contribution which shall be paid by the employer to the fund shall be of the basic wages and dearness allowance and retaining allowance. The law is silent in matter relevance with the minimum wages act’s basic amount and also silent on the fact the basic should be as per minimum wages act because the central act never refers the state act on the other hand state act or rules may refers to the central act.
Section 2 (b) of employees provident Funds & Misc Provisions Act 1952 defines as defines as “ Basic Wages” means all emoluments which are earned by an employee while on duty or on leave or on holiday with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but doesn’t include
i) The cash value of any food concession
ii) Any dearness allowance that is to say, all cash payment by whatever name called paid to an employee on account of rise in the cost of living, house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment.
iii) Any present made by the employer
In above case you can clearly view that the above section just gives meaning of the basic wages it doesn’t make any relevance with the minimum wages act basic. More over it doesn’t give any minimum limit or maximum limit of basic wages. It also excluded the other allowances for considering the basic wages even it doesn’t enlighten us about what should be the basic wages for time rated worker and piece rated worker. Employees Provident Fund & Misc Provisions Act 1952 is silent in above all matter therefore judgment given by either high court or apex court in this regard from time to time purely depends on the terms of condition, agreements made between worker and management as per settlement as per award given by the labour court and as mutually agreed in the appointment letter. Therefore courts put focus on the changes made from time to time on such agreement and assess the affected areas in different law and relevant parties.
Example
1. Bridge & Roof Co (I) Ltd V Union of India 1962 II LLJ 490.
2. Burmah- Shell oil storage & distributing Co.Ltd Vs R.P.F.C Delhi 1981 II LLJ 86
3. Shree Changadeo Sugar Mills Vs Union Of India 2001. I Clr 701 (S.C)
4. K.Ramnathan Chettiar Jewellers, Madurai V Regional Commissioner, Employees Provident Fund, madurai, 1998 II LLJ 945 (Mad.H.C)
5. Ponni Sugar & Chemicals Ltd . Pallipalayam, Erode Vs Cauvery Sugar & Chemicals Ltd. 2001 II LLJ 1201 (Mad – D.B)
Regards,
Ashish K Sharma
Sr. Manager -IR
From India, Gurgaon
The Section 6 of The Employees Provident Fund and Miscellaneous Provisions Act 1952, the contribution which shall be paid by the employer to the fund shall be of the basic wages and dearness allowance and retaining allowance. The law is silent in matter relevance with the minimum wages act’s basic amount and also silent on the fact the basic should be as per minimum wages act because the central act never refers the state act on the other hand state act or rules may refers to the central act.
Section 2 (b) of employees provident Funds & Misc Provisions Act 1952 defines as defines as “ Basic Wages” means all emoluments which are earned by an employee while on duty or on leave or on holiday with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but doesn’t include
i) The cash value of any food concession
ii) Any dearness allowance that is to say, all cash payment by whatever name called paid to an employee on account of rise in the cost of living, house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment.
iii) Any present made by the employer
In above case you can clearly view that the above section just gives meaning of the basic wages it doesn’t make any relevance with the minimum wages act basic. More over it doesn’t give any minimum limit or maximum limit of basic wages. It also excluded the other allowances for considering the basic wages even it doesn’t enlighten us about what should be the basic wages for time rated worker and piece rated worker. Employees Provident Fund & Misc Provisions Act 1952 is silent in above all matter therefore judgment given by either high court or apex court in this regard from time to time purely depends on the terms of condition, agreements made between worker and management as per settlement as per award given by the labour court and as mutually agreed in the appointment letter. Therefore courts put focus on the changes made from time to time on such agreement and assess the affected areas in different law and relevant parties.
Example
1. Bridge & Roof Co (I) Ltd V Union of India 1962 II LLJ 490.
2. Burmah- Shell oil storage & distributing Co.Ltd Vs R.P.F.C Delhi 1981 II LLJ 86
3. Shree Changadeo Sugar Mills Vs Union Of India 2001. I Clr 701 (S.C)
4. K.Ramnathan Chettiar Jewellers, Madurai V Regional Commissioner, Employees Provident Fund, madurai, 1998 II LLJ 945 (Mad.H.C)
5. Ponni Sugar & Chemicals Ltd . Pallipalayam, Erode Vs Cauvery Sugar & Chemicals Ltd. 2001 II LLJ 1201 (Mad – D.B)
Regards,
Ashish K Sharma
Sr. Manager -IR
From India, Gurgaon
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