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
Yes Provident Fund is a contribution by the employee and equal contribution by the employer subject to the Statute, Basic Earning, Voluntary Contribution of employee and Employer.
The statutory deduction depends on the Basic Earn which is 12 % for the employee and equal contribution by the employer, thus now the contribution so decuted i.e 24% is depsoited in 12% (Emp Contribution) + 8.33% (Employer Contribution) in Employee PF account and the rest amount in Pension Fund. In any case employee basis is more than Rs. 6500/- than the Pension Contribution will be mac ceiling to 541 only and the left amount will be deposited in Employee PF account with his Contribution of 12% and 8.33%.
Hope the same is clear.
It has been made quite clear that PF is recovered on Basic wages and DA,
But I have come to know in some cases E.O ( Enforcement Officer ) are forcing to deposit PF on OT, where Employer has has paid more than 50 Hours of OT in a quarter.
It is still doubtful whether to deposit PF on OT or not??????
Can any body clear this???
As it is well known and so far as my knowledge says PF is applicable on normal wages (Basic+DA) only. But we are being framed and asked by PF Authorities to deposit the Contribution on OT Wages also, both Employees/ Employers share in arrears with Interest and Damages.. They are framing us under Sec 7A, Evasion of wages.
Can any one help us in this matter. How OT is being calculated as Evasion of wages? Can you help in citing any Rules where it is stated that NO PF Contribution is applicable on OT.
Can you cite any Rule. As we are directly affected on this clause,
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 the early response.
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