PF deduction on overtime - high court.. CiteHR

sam_kr20 Started The Discussion:

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

aparna khairnar -  Member Since: Sep 2008
Hi PF is two side employer & employee EPF EMPLOYERS 12% + EMPLOYEES 3.67% on the basic & ESIC is calulated on the Gross salary

ajay_shekar -  Member Since: Jan 2009
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

Vinmind -  Member Since: Jul 2006
Dear All,

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.


HSINGH -  Member Since: Jun 2007
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???

Beenair -  Member Since: Dec 2007
Hi All,We calculate OT as below -(Basic + HRA + Adhoc Allow) x 2 x No.of OT hrsIf PF is calculated on Basic then, I believe PF must be applicable on OT also.Request seniors to pls clarify.Regards,Beena

HSINGH -  Member Since: Jun 2007
Originally Posted by lkandpal View Post
PF deduction on overtime should not be deducted.

Lalit Kandpal
As I said earlier that NO PF is deducted on OT Wages , it only when a worker has worked more than 50 Hours of OT in a Quarter , Enforcement Officer insists to deposit PF Contribution on OT Wages. Can anybody clarify, does it comes in the PF act:!:

:?: :confused:

Monica Nagar -  Member Since: Jul 2008
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

HSINGH -  Member Since: Jun 2007
Originally Posted by malikjs View Post
provident fund contribution is not made on OT.
js malik
Dear Malik Jee,

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.


Harminder Singh

HSINGH -  Member Since: Jun 2007
Originally Posted by prabhakarssp View Post
ans is no on ot amount
Dear Prabhakar,
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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