Taxation And Hr
Korgaonkar K A
Private Consultant On Labour Laws
Sr. Manager Hr & Ir
Chaitanya Kumar K
Asst Manager
+3 Others

Dear All,
As per EPFO how much Overtime is authorized.per day / monthly. Is there any parameter to consider while verifying Salary Sheet.
Secondly if employer pays double for the overtime hours it is exempted from EPF contribution.
For Building Construction Company any thing special regarding overtime components.
MK Verma
22nd April 2013 From India, Ahmadabad
As far as my knowledge is concerned; it should not exceed 50 OT hours in a month
22nd April 2013 From India, Visakhapatnam
Dear Verma ji, EPFO has no concern with overtime. PF is not deducted on overtime. Exemption i.e. exclusion from PF is on rate of Basic plus DA component for eight hours working.
22nd April 2013 From India, Mumbai
Dear Mr. Verma
For purpose of EPF contribution the “Pay” includes basic wages with [dearness allowance, retaining
allowance (if any)], and cash value of food concessions admissible thereon.
As mentioned by Korgaonkarji there is no question of having any concern for OT for this purpose.
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
23rd April 2013 From India, Mumbai
Dear Mr. Verma,
first thing , Over time is not concerned to EPF , there is no deduction/contribution for over time payment.
second thing , overtime is concerned to Factory act.1948 ,not EPF act 1952.
it should not be above 50 hours in three month.
this is for your information,
Kapil Rathore
MBA- HR , Labour/Factory low
Mb. 09039381496
23rd April 2013 From India, Bhopal
Korgaonkar K A is right that EPF is only concern with basic+da+food conc.(if any) rather that any of the allowances. thanks & Regards, From, Sumit Kumar Saxena
23rd April 2013 From India, Ghaziabad
dear Sh Vermaji,
There is no stipulations of overtime working in the EPF Act. The PF contribution is not payable on the overtime earnings. You will find overtime stipulations in Minimum wages Act, Factories Act, Shop & Establishment Act etc. but nothing is said about overtime in the EPF Act. As regards your query with regards to the provisions of overtime components for Building Construction Company in concerned, there is no limitation of overtime working under BOCW Act, however it provides that when a building worker works more than nine hours on any day or more than forty eight hours in any week, he shall be entitled to get wages at double the ordinary rate of wages for the extra hours worked.
BS Kalsi
Member since Aug 2011
23rd April 2013 From India, Mumbai
Dear Verma As per Factories Act, OT maximum limit is 50 hours per quarter and it doesn\'t attract PF contribution from the employer. Thanks & Regards, A Ravichandran
23rd April 2013 From India, Chennai
But if Overtime is not being paid double rate in that case epf contribution is required? those are epf member. Secondly daily 5 to 6 hours overtime is authorized. MK Verma
23rd April 2013 From India, Ahmadabad
Dear Mr. Verma, Mr. A. Ravichandran is very much right. As per Factories Act only 50 hours over time is allowed in a quarter. rgds, Madan, Delhi
24th April 2013 From India, Delhi
as per my knowledge now there is a little amendment in EPF Act. i.e epf limit for deduction is 6500/- in which all the allowances has also been calculated.
24th April 2013 From India, Patiala
Dear Sh Vermaji,
You are getting confused with the PF contributuion on the deductible part of the wages/salary of an employee.Sh Shailesh Parikh has rightly mentioned that for purpose of EPF contribution the “Pay” includes basic wages with [dearness allowance, retaining allowance (if any)], and cash value of food concessions admissible thereon.I have understood your query which contains two parts as how to treat his salary on a particular day when somebody is put on overtime.The PF contribution will be payable on one's ordinary rate of wages on that particular day but not on his overtime wages earned by him.We can't agitate on the stipulations of overtime given in various enactments unless the same are amended through policy frame work of Govt of India.
BS Kalsi
Member since Aug 2011
24th April 2013 From India, Mumbai
It is only applicable wherever total salary including various allowances are either 6500/- or even more but Basic + DA salary shown below 6500/-. For example basic+ da = 4000 + allowances 2500/-. In this case PF deduction making on 4000/-, under this circumstances
what you say is applicable. There are to court judgements, however time being it is not
in enforcement. It is likely to be announce by EPF department, such news was published few days back in News papers.
Pramod Thakar
24th April 2013 From India, Pune
Dear All Members,
I am enclosing herewith a newspaper clipping from Mint dated April 19, 2.013 for the information of the membrers.
The Labour & Employment Ministry, Govt. of India has constitued a Committee which has submitted its report favouring clubbing of all components except HRA, overtime, bonuses and commission to be consider as part of the salary under PF Act. This move will result in employers contributing more to EPF accounts of the employees.The Ministry is also contemplating to facilitate on line transfer and withdrawal of PF accounts of the emolyees in near future.
BS Kalsi
Member since Aug 2011
24th April 2013 From India, Mumbai

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File Type: pdf clubbing of allowances with basic pay under PF Act.pdf (90.6 KB, 188 views)

Mr. Verma
PF is calulated on BASIC+DA+CASH VALUE FOR FOOD and according to factory act 1948 the total working hours in a week including oertime hours should not exceed sixty and the total overtime hours in a quarter should not exceed 50.
30th April 2013 From India
Dear ramit,
Unlike Factories Act, the BOCW Act do not provide any limit of overtime work laid down therein.However, Section 29 of the Act has prescribed the wages for overtime work. It stipulates that where any building worker is required to work on any day in excess of the number of hours constituting a normal working day,he shall be entitled to wages at the rate of twice his ordinary rate of wages.The Delhi Rules provides that no building worker employed in building or other construction work shall be required to work for more than nine hours a day or forty eight hours a week.
BS Kalsi
Member since Aug 2011
29th May 2014 From India, Mumbai
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