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rk9898
3

Dear Sirs,
I'm not sure if the attandance bonus, ot and travel allowance that we pay to our factory workers will be covered under PF & ESI.
At the moment, only the salary that we pay to our workers is being covered under ESI and PF. For the overtime, travel allownace and attendance bonus that we pay them in the separately without salary we are not deducting pf and ESI.
Please advise if this is right? Looking forward to your valuable feedbacks.
Thanks,
RK

From India, Madras
saiseven
54

Dear Rk
for the purpose ESI, wages includes O.T wages and attendance bonus, if paid as per settlement or paid at intervals of two months but excudes travelling allowance.
B.Saikumar
HR& Labour Law advisor
mumbai

From India, Mumbai
rk9898
3

Dear Sir,
Thank you for your valuable feedback.
I understand from your reply that OT and attendance bonus should also be included while deducting the 1.75% from the employee side but not travell allowance.
Any of these three to be added while deducting PF 12% fom employee side?
Please help.
Thanks,
Rk

From India, Madras
shreya_3
Kindly suggest me that how to write a letter to request from head office for some grace period for any data
From India, Delhi
harpreetwalia
121

As per factory's act 1948 section 59 (2), PF also to be deducted on overtime paid to the employees as this is a part of the salary. This has been cleared by a recent judgement of the madras high court as well.
From India, New Delhi
rk9898
3

Thank you harpreet ji. understand that Pf to be deducted on OT. Is PF also required to be deducted from attendance bonus and travel allowance? please advise. Thanks,
From India, Madras
mukesh saini
12

Thank You Harpreet ji, In my knowladge Basic And DA is the base of PF calculation. I donot know about the over time. Can you provide the jugment copy about the same. Mukesh Kumar
From India, Bareli
harpreetwalia
121

no it is not applicable on bonus or any travel allowance paid extra. This is to be deducted only on basic salary or Overtime paid. The percentage of the basic salary should be calculated on basic for pf calculation on overtime.
For eg: if my salary is 10000 out of which 6000 is my basic salary which is 60%. I have done an overtime for which I would be getting Rs. 500. On 500 you should calculate basic part of 60% which is 300. On this 300 rupees you need to deduct pf of 12% which is Rs. 36

From India, New Delhi
p_xavierraj
11

The PF deduction will be calculated Basic + DA . If you paid in quarterly attendance allowance the payment is not covered under ESI P. Xavier Raj
From India, Pondicherry
mb.swaroop
On over time we should not calculate P.Fund.Only Esic will be deducted. Regards M.B.Swaroop
From India, Hyderabad
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