In our company, we are making PF payment on a Component of Wrokers Payslip called as " Paid Holiday Allowance"..
This paid Holiday allowance is paid to workers, who are attending duty on Public Holiday declared under act like"August 15 / Vijaya Dasami/Deepawali".
Is it necessary to make Employer Contribution of PF on such component under Act.

From India, New Delhi
Hr Consultant
Rajesh Kumar Dubey
Manager - Hr
+3 Others


paid holiday means part of salary || so all statuary deductions are applicable

The management can not escape by Nominate some Amount / earning as Paid Holiday Allowance. This is the earning and all amount attract PF/ ESI/ TDS/ PT coverage.
From India
You are talking of workers. Is it a factory? You are calling workers on paid holiday for others. As such such workers should be paid overtime wages @ twice the normal rate of wages. OT wages do not attract PF.
Guys first understand the whole scene and then post your comments, lest you may misguide

From India, Mumbai
According to my understanding you have raised two queries 1) PF amount being paid as Paid Holiday Allowance and 2) Paid Holiday benefit.
1) You are required to pay company's contribution on on PF amount being paid as Paid Holiday Allowance.
2) Paid Holiday benefit : In case you are depriving declared holiday to your worker(Vijayadashami, deepavali etc.,), you company has to pay him additional day's wages or in lieu a compensatory holiday for depriving declared holiday whatever the individual opts. However, Overtime payment on paid holiday is to be calculated in case the worker is engaged beyond 9 hours on that particular paid holiday and not otherwise.

From India, Mumbai
I Wish to clarify further.
1. Ours is a Manufacturing Industry of continuous process (Running 24 Hours X7 Days ), hence it is not practically possible to close.
2. Workers, who will attend duty on Paid holidays, will be paid Over Time for the paid holiday and the same is in the name of Paid Holiday Allowance. on which management is paying Profession Tax also considering it as their earning.
Since Over Time is paid in the name of paid Holiday Allowance, is it required to pay Employer Contribution of PF.

From India, New Delhi
Overtime wages (paid as Paid Holidays Allowance) does not attract Employer Contribution of PF. In case you are recovering employee contributions towards PF from OT wages paid as Paid Holiday allowance you have to pay Employer matching contribution for the same.
From India, Mumbai

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