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
Posted 13th January 2009 From India, New Delhi
Hi PF is two side employer & employee EPF EMPLOYERS 12% + EMPLOYEES 3.67% on the basic & ESIC is calulated on the Gross salary
Posted 14th January 2009 From India, Mumbai
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
Posted 14th January 2009 From India, Bangalore
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.

Posted 14th January 2009
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???
Posted 14th January 2009 From India, Raurkela
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
Posted 15th January 2009 From India, Pune
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:
Posted 17th January 2009 From India, Raurkela
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
Posted 28th May 2009 From India, New Delhi
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
Posted 30th May 2009 From India, Raurkela
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.

Posted 30th May 2009 From India, Raurkela
PF cannot be deducted on overtime allowances.

Fore detail information: White Eagle: Provident fund and Overtime Allowances
Posted 6th November 2009 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

Posted 11th July 2010 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.

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)


Ashish K Sharma
Sr. Manager -IR
Posted 26th October 2010 From India, Gurgaon


Found This Useful? +Vote Up This Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
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+  
Copyright © 2016 Cite.Communities (CiteHR.Com) User contributions are owned by the contributor.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network