Incentives will not attract Pf contribution but incentives paid on a monthly basis will attract ESI. As per ESI act all payments made in an interval of not more than two months shall be treated as part of wages. That means if you pay incentives quarterly, you can exclude it.
Regards,
Madhu.T.K
From India, Kannur
4193Regards,
Madhu.T.K
From India, Kannur
Dear Seniors,
Company XYZ pays Outstation allowance to employees on a monthly basis. Is the payment of Outstation allowance eligible for PF deductions?
Does Outstation allowance fall under the purview of Definition of Basis wages as per EPF Act?
Your point of view will be highly appreciated.
Regards,
Suresh
From India, Bangalore
Company XYZ pays Outstation allowance to employees on a monthly basis. Is the payment of Outstation allowance eligible for PF deductions?
Does Outstation allowance fall under the purview of Definition of Basis wages as per EPF Act?
Your point of view will be highly appreciated.
Regards,
Suresh
From India, Bangalore
Dear Suresh
A employee was covered under the EPF ACT in previous organization when he was getting
basic salary greater than Rs.6500/.When he joins in present organisation,his basic is greater than Rs.6500/- but employee is not willing for PF, BUT EMPLOYERS' must take responsibilities for PF though employee is not interested because, enforcement officer may come for inspection that time he may point put to enroll under PF. That time PF contribution will be accumulated.
For avoiding this, employer insists employee to get certificate from previous employer that he has not contributed any pf for these employee.Any way employer must ascertain this.
With regards
v.subbarao
From India, Madras
A employee was covered under the EPF ACT in previous organization when he was getting
basic salary greater than Rs.6500/.When he joins in present organisation,his basic is greater than Rs.6500/- but employee is not willing for PF, BUT EMPLOYERS' must take responsibilities for PF though employee is not interested because, enforcement officer may come for inspection that time he may point put to enroll under PF. That time PF contribution will be accumulated.
For avoiding this, employer insists employee to get certificate from previous employer that he has not contributed any pf for these employee.Any way employer must ascertain this.
With regards
v.subbarao
From India, Madras
Dear Suresh,
Since outstation allowance is an allowance given to some special category of employees it will fall under special allowance and allowances which are paid to a particular category of employees will not form part of salary for the purpose of PF deduction.
Regards,
Madhu.T.K
From India, Kannur
Since outstation allowance is an allowance given to some special category of employees it will fall under special allowance and allowances which are paid to a particular category of employees will not form part of salary for the purpose of PF deduction.
Regards,
Madhu.T.K
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf