Pf And Esi Computation In Case Of Ugc Pay - PDF Download - CiteHR
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Prghr
Dy Manager Hr
+3 Others

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Dear Professionals,
Scenario : Teacher is employed at a college and pay scale is as follows
UGC Pay : Rs . 30000
General DA (UGC): Rs. 17400
HRA(UGC) Rs. 3000
Medical Allowance (UGC) Rs. 300
College Pay Rs. 740
College DA Rs. 100
Special Allowance Rs. 5000
Queries
1. Whether PF and ESI applicable to the employee since UGC pay scale is much higher than the amount specified for applicability of ESI and PF ?
2. If applicable on what amount college needs to deduct ESI and PF and at what rates ?
3. What is the rate of deduction of PF on UGC pay ?
Your early suggestion will be highly appreciated.
Regards,
BJ
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Dear friends,
ESI is not applicable in this case. Even though PF is also not statutory, it may be remitted with the consent of employee and employer on either ceiling salary or actual salary.
Abbas.P.S
Dear Abbas,
Thanks for your response, but it will be helpful if you give clarification on the amount on which PF needs to be deducted. whether PF is to be deducted on all the components of salary .i.e UGC Pay + College Pay or only on college pay and if it is only college pay whether college DA and Special allowance needs to be included.
Regards,
BJ
Dear BJ, I don’t know much about your pay structure. Generally Basic+DA will be taken into account for PF remittance. Abbas.P.S
Dear all, can pf be withdrawn , paid for just 3 months pls update
Dear Arpan Doshi, Yes, you can withdraw PF; but not the pension contribution. Pension service can be added with future services. Abbas.P.S
Dear Arpan Doshi, Instead of withdrawing your PF amount, you may transfer your PF A/c into your new company’s PF A/c.
Dear All , Our establishment having EPF registration but not used the same since 2005. Now I want to regularize the same account to pay PF for new employee. Please tell me the procedure.
Dear Abbas,
Please refer to my query, as defined in the act basic wages means-
“Basic Wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
 the cash value of any food concession;
 any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
 any presents made by the employer;
Considering the definition and various case laws as given in the attachment, DA and other allowances as defined in the act is specifically excluded from the definition.
Please share your views in this regard.
Regards,
BJ

Attached Files
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Dear BJ,

I shall quote the provision 6 of the EPF & MP act, 1952 as under

" 6. Contributions and matters which may be provided for in Schemes. – The contribution which shall be paid by the employer to the

Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance, if any, for the time being payable to each

of the employees whether employed by him directly or by or through a contractor, and the employee's contribution shall be equal to the

contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding ten percent of his

basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under an

obligation to pay any contribution over and above his contribution payable under this section: "

I have a service of nearly 28 years in EPF. For all the period I have been contributing to PF based on Basic+DA. My experience is my master supported by the above clause.

Abbas.P.S

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