fabesd Started The Discussion:
Dear CitiHR, Our company is contributing to the PF fund only for employees who are drawing less than 6500/- The remaining employees are not taken in the scheme. Is it compulsary to include employees drawing more than 6500/- and contribute, or its is left to the discreation of the employer. Is there any rule in the PF act. Rgds Fabes
Dear Fabes, As per the Act the employees who are drawing the Basic + DA equal or less then Rs.6500 ,The deduction for such employees towards PF is manadtory and if such person in due course of employment exceeds the limits even then he is eligible to get the PF contribution. If a person at the time of joining the organisation draws the Basic+DA more than the limit.This is total depends on Employers discretion and surly not mandatory. Regards Ashok Kumar 09818646314
Dear all, I work as a third party HR for a retail client.. Can somebody clarify me if PF is reduced on Basic+DA or only Basic salary...??? Further, what are the other options than providing OT to employees viz.. providing dinner, dinner allowances, conveyance etc...?? What all parts of a pay would attract ESI...??? Expecting your earliest response... Thanks & Regards Subhashinee
For EPF it is Basic + DA wages taken for contribution. For determining the eligibility for coverage OT is not taken as part of salary, but if a covered employee earns OT in a month, then ESI contribution to total amount of salary including OT has to be paid. Instead of OT, if you pay any other allowance, like conveyance allowance, you can avoid contribution. But to what extend? If you pay conveyance instead of OT, and when the Factories Inspector calls for details of overtime work done, you are bound to show the amount of OT given, otherwise it is violation of Factories Act. Therefore, always pay as per head only. Regards, Madhu.T.K
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