Industrial Relations And Labour Laws
Sr. Executive Hr
Aashiema Saxena
Assistant Manager - Hr
Private / Accounts Asst.
Personnel Officer
Office Superintendent
+5 Others

Hi All,
I need some clear explaination regarding arrears.My questions are given below:
1.If there is arrear calculation involved in the company, how would PF & ESI deductions on arrears be calculated?
2.How to specify about ESI/PF deducted on arrears in monthly, half yearly & yearly returns?
3.Should we submit PF forms separetly for the Arrears amount or should we give reports for the amount obtained by summing current Basic+DA+arrears on Basic+ Arrears on DA?

Kindly explain with examples.

Thanks in Advance.

21st January 2009 From India, Madras
If you give arrears of salary this month, deduct PF/ ESI at the prescribed rates (12%/1.75%) from the arrears and pay it. The additional PF/ESI so deducted shall be deposited along with regular contributions. In the returns, show the total salary (salary for the month + arrears) as salary for the month and also show the total contribution (usual contribution + additional contribution for the arrears of salary) as contribution for the month. There is nothing wrong if the salary and the contribution for the next month is less than current month. You can put a remark to this effect in the returns.
22nd January 2009 From India, Kannur
Dear Madhu, If we pay the arrears separately and also mentioned separately in the returns form3a. if there is any penalty raise by the govt. Please clarify me. Thanking you
21st May 2010 From India, Coimbatore
There will be no interest or penalty provided the PF for the arrears is paid within 15 days of its payment. You can show the salary arrears and PF contributions thereon separately also. But the form 3 A has only 12 rows to show monthly salary and contributions for 12 months only. Therefore, it is advisable to club the arrears with salary of the month in which it was paid.
21st May 2010 From India, Kannur
Dear Madhu
Thank you for your reply.
We had received one access file which is sent by the pf office which for preparing form 3a and 6a. In this database it have 13 rows. We asked them what is the purpose for 13th row. They replied that is for arrears or any other payment given to the employee.
So we taken that database format and we derived the same format in our payroll program.
Please Give Me the reply.
Thank you once again
22nd May 2010 From India, Coimbatore
In soft copies either in excel or access forms it is possible to add any number of rows to show arrears separately and, therefore, you can prepare it in the same format. Go ahead. Regards, Madhu.T.K
22nd May 2010 From India, Kannur
Dear Madhu Sir,
Today, when PF is submitted online then how to calculate PF on arrear. Suppose One employee basic salary is 6500 and he gets Rs 1000 as a increment. Then what will be the total PF deduction in this case. Will it be 6500*12% + 1000*12% or anything else.
Dinesh Kumar
6th June 2014 From India, New Delhi
If your practice is to give contribution on salary above Rs 6500 also, then it will be 12%on 7500, otherwise it will be restricted to 12%on 6500 only. You need not pay PF on arrears as PF qualifying salary has exceeded Rs 6500.
7th June 2014 From India, Kannur
Madhu Sir,
Please reply asap of the following query:
Suppose, PF limit is only Rs. 6500 and we are deduction on 6500. Now if any employee previous basic salary is 6000 and now his basic salary is increased by 1000 in the month of May 14 which is applicable form the month of April 14. Now his basic salary is Rs. 7000. Then how much PF will be deducted from the salary including arrear of previous month.Will it be 12% of 6500 + (12% of 500 or 12% of 1000). Sir, Please reply asap.
Dinesh Kumar
9th June 2014 From India, New Delhi
Dear Dinesh, In your case you need to pay 12% on Rs. 500 however your company follows wage exceed limit of Rs. 6500/- Regards, Janardan
9th June 2014 From India, Mumbai
If your company restricts PF on Rs 6500, then you can pay like 12% of 6500 + 12% of 500 for the arrears Madhu.T.K
9th June 2014 From India, Kannur
Dear Madhu sir Can you Please tell how to deposit the arrears online, when ever i try to upload the ECR it gives an error Thanks & regards Rahul Kumar
30th August 2014 From India, Rajpura
There are column in ECR format for arrear. Just enter the arrear amount in these column and upload the .txt file. If you any error please send the .xls file. I will correct it. Regards Dinesh Kumar
30th August 2014 From India, New Delhi
thanks for replying
i have that 'E Return Tool version 5.0' and there is one column arrears for this months but i have to file arrears for the month of march & April and i have upload the ECR for those months already, and now how i file /deposit that incremental pay arrears for march April
30th August 2014 From India, Rajpura
Dear Sir,
In the ECR Form, Column N is Emp PF Arrears from past months. Suppose an employee was given an additional Basic amount in any of the past month which will retrospectively carry forward additional PF amount to the current month payroll. In such as case, can the additional PF be shown in Column N? Will the total amount ie Current Month PF + PF Arrears be posted against his name? Do we also have to show the additional basic amount on which additional PF amount has been shown as arrears? If so, in which column is this amount to be shown?
14th February 2015 From India, Hyderabad
Dear All,
I need an assistance in the matter of PF and that is when we have forgot, or due to any reason , to pay or credit the contribution in any PF account, what are the formalities to deposit the arrears amount in that account ? I need this assistance asap. Can anyone help?
1st August 2015 From India, Gandhidham
I have one more question regarding this query, how can an employee see his arrears payment by employers as its not coming in their PF passbook.
4th February 2016 From India, Delhi
Arrears payment will be reflected in the passbook along with regular payment for that month. Madhu.T.K
5th February 2016 From India, Kannur
How to deposit arrear PF online submission for staff wef 01.04.2015. please give us the details as how to go about.
2nd September 2016 From India, Delhi
Hi Friends,
I need a clarification on the New Version ECR 2.0, that there are some fields shown in the new version like Wage Period, Disbursement Date and ECR (or) Arrear.
Now my question is if I am paying the 8 days of Arrear Wages of Sept along with Oct salary disbursement, then i will have to select the Wage Period Oct, Disburesment Date as 1st Nov and ECR type as Arrear (Because it will pick as Arrear of Sept paid in Nov).
In this case, will the Damage and Interet will be applicable for this 8 days arrear PF contribution.
Pls clarify.
A. Krishna Prassad
28th November 2017 From India, Chennai
Hi i got my pf passbook statement but have a doubt how to calculate that ,
There is three different amount
1.employee share -54000
2.employer share-16000
3.pension contribution-34000
What will be the net amount will be paid.
30th November 2017 From India, Hyderabad
Is negative arrears needs to consider while calculating pf???
30th October 2018 From India, Bangalore
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™