Hr Personnel Manager
Deputy Manager Hr
Greetings for the day,
Answer for the query cited below :
1) It is true that minimum wages is the component of basic+da, secondly EPF is applicable on the same .As far as the ceiling of Rs. 6500/- is concern it is only for EPS/EDLI., but the wages fall under that category the deduction should be must. Once anyone become the member of EPF/EPS scheme, the opportunity of the same can't be withdrawn during the service period. Secondly it is solely depend on the employer that he is willing to deduct the EPF on actual basic+da or limited upto the ceiling Rs. 6500/-. If the EPF deduction is on actual basic +da then the EPS/EDLI contribution should be limited upto Rs. 6500/- or limit the same upto RS. 6500/- whatever be the basic.
2) The calculation of OT will be on gross salary instead of Basic+da and should be twice the rate of wages, formula should be Gross salary/26/8 * ot hrs. * 2 .
3) Compution of gartuity should be basic +da (actual) and formula should be basic+da/26 * years of service * 15 and payment of the same should be after completion of 5 yrs. of service.
Thanks & Regards,
Sumit Kumar Saxena
25th March 2014 From India, Ghaziabad
1. my question was My Basic 6200 and DA 3300=total 9500.
So in this case we can exempt from PF or not.Because BASIC + DA Showing more than 6500.
So i am legally compelled or not to deduct pf..
2. Secondly i heard most of time Overtime given on Basic+ DA(Twice of working hours).
Is it company policy that they are giving overtime on gross salary.
25th March 2014 From India, Chandigarh
*PF always calculated on Basic & DA (As you have DA in your salary structure).
So PF will be 12% of (Basic+DA).
exemption from PF:-
If that employee had never been member of EPF, means PF was not deducted in his previous company and his basic is more than 6500 then he has option whether to become a member of EPF or not.
But, if he is already EPF Member then you have to deduct his PF.
Only you have choice to restrict his PF to 780 (i.e 6500* 12%)
25th March 2014 From India, Mumbai
it means that if employee has never been a member of pf earlier...and his starting Basic+DA> 6500...(Basic 6200 and DA 3300)..
As per your suggestion he is exempted from Pf Deduction...It does not matter even his Basic less than 6500...Because his company also giving DA to him....And His BASIC + DA >6500 i.e 9500.....
Am I Right now...
26th March 2014 From India, Chandigarh
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Please contact with me for your EPF withdraw. My mobile no is 09937894045.
2nd April 2014 From India, Gwalior