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Thread Started by #punitsatna

what is gross salary means in new ecr format please clarify ?
12th January 2017 From India, Indore
gross wages means total earning of the person, from that employer
12th January 2017
Dear Friend,
There are two important terms in New ECR:
Gross Wages- Gross Salary of the Employee
EPF Wages- Basic + DA amount on which we are going to calculate pf amount
Note: The calculation is based on EPF wages in new ECR
Thanks & Regards,
Juber Ahmad
12th January 2017 From India, Silvassa
With this EPFO people will get an idea as to on what amounts the establishment is paying PF. Since many companies pay PF on Basic salary alone and this practice is not right as per law, the new challan would be a hurdle for them. There will be difference between Gross salary and PF contributing salary and there is high chance that they will require us to clarify the reasons for the big gap. Minor difference is okay because any way HRA which is part of gross salary is not a part of PF qualifying salary.
13th January 2017 From India, Kannur
EPFO is going soon to raise limit to 25000/-
also CLRA ( contract labour) are paid much lower than the payment is generated from principal employer
so the department is collecting data, to pass the benefit to low wages paid employees
13th January 2017
how to create bulk uan no. please attacheh excel file for create bulk file of UAN AND write the how can prepare excel for that and whats heading we will put in it please
13th January 2017 From India, Gurgaon
since the new portal launch, a singal aadhar have not been verified, everytime it bounce back with non connectivity with aadhar portal, and thinking to generate multiple UAN? it will generate errors only
go one by one, and seed mobile, atleast one document aadhar or pan, with bank details, mobile and current gross salary,
bulk loading is possible for new joining members who already have KYC verified UAN, not for freshers
13th January 2017
@sonu this is the error for loading documents every time Line No 1 Unexpected error occured. AADHAAR Service not available.
13th January 2017
Hi punitsatna, gross salary mean, whatever he/she has earned (Basic+DA+HRA+Otehr and ect). Thanks & Regards Ashish Shaw
16th January 2017 From India, Kolkata
i would appreciate a clarification regarding gross wages as per ECR 2.0. Does that include bonus and overtime wage as well ,which is not constant or is not part of monthly emolument?
Thanks and regards,
P Vijayan
17th January 2017 From India, Kochi
gross wages as per EPF ECR 2 = the amount on which basis you clculate the slab of profession tax , or the amount which is to be submitted in form 16 , ( both are same)
17th January 2017
Hi, can any one explain how to calculate gross wages in the attached file. Regards, Nandini
3rd February 2017 From India, Mumbai

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if we calculate bonus and overtime for
for 16 (TDS calculation )
Professional tax
then it also would be taken under gross wages,
remember they are not demanding the contribution on gross wages, but the gross wages summing up for 12 months would match with the wages + salary expense of the establishment,
They are also asking for "excluded employee details" ie no of persons and amount paid to them. (i.e either the persons of 58+ who are not in epf list, or the persons who have not been included in EPF or ESIC since start, due to high paid salary)
this measure is taken to trace out the employers who are showing expense under wages but evading the labor welfare benefits .
3rd February 2017
@NandiniB Please find your file marked for gross wages required for ECR generation
3rd February 2017

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Hi Sharma, Thank you for the reply. PFA the file as my senior person did. Gross wage is different from your calculation to her calculation please explain me. Regards, Nandini
4th February 2017 From India, Mumbai

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There can be different interpretations for gross wages and PF qualifying/ contributing wages when it is a case with regard to an employee whose monthly salary exceeds Rs 15000. An employer is under no compulsion to pay PF on an amount exceeding Rs 15000, though many employers contribute on entire salary or at least entire Basic (plus DA) without restricting it to Rs 15000. This is the case with most of the big companies whereas medium sized companies and small companies would go for restricting it to 12% of Rs 15000.

In the former case, the PF qualifying Gross Salary is Rs 180000 per annum (15000 X 12). Therefore, the first interpretation of gross salary is that it is a salary subject to a maximum of Rs 15000 per month or Rs 180000 per annum. At the same time, if your establishment pays PF without any salary ceiling, then it can be the amount on which PF is deducted. This is the second interpretation and as per this interpretation and continuing the example given by Nandini, the gross salary is Rs 92788 per month or Rs 1113451 per annum.

Now had the employee been in receipt of a salary less than Rs 15000, certainly, his other allowances would also attract PF. That means in the case of an employee whose salary is not more than Rs 15000, the PF qualifying salary is not just Basic salary and DA but it is the gross salary less HRA. That means, PF qualifying salary should include all such allowances which are paid while an employee is on duty or on leave except HRA. There has been a misconception that among us that PF is payable only on Basic salary and dearness allowance. Certainly, it is true that PF is payable only on Basic wages and DA but what is basic salary has been defined very clearly in section 2(b) of the EPF & MP Act as the whole emoluments payable as per contract of employment except HRA. Therefore, basic wages shall include allowances also. With regard to treatment of special allowance, we have a quite number of court verdicts which say that special allowance paid to all the employees should be taken as part of salary whereas if it is paid to a particular employee considering his special skill or some kinds of hardship to which he is exposed to during the course of employment, then such an allowance shall be excluded from salary.

Hope this will clear the doubts of Nadini.

4th February 2017 From India, Kannur
in any term the EPF amount does not differ.
under the basic concept of EPF , they want the data from employer , that as per their Profit and loss account some amount is debited under the head "wages / Salary" and if the amount is reconciled with 12 challans of the year, with gross wages, then they will not bother much.
Please note that after ECR submission they ask for "excluded employee" salary no of persons and amount also.
in gross its the way to reconciliation with the accounts and labor department returns, and to trace out if the establishment has avoided to pay the EPFO dues , which gets payable to the department,
4th February 2017
Hi Madhu and Sharma, I understand the explanation but still i can’t able to make it out how gross wage came Rs.378917/-. Regards, Nandini
6th February 2017 From India, Mumbai
@nandini some columns which is made "0" in your sheet, where i have marked green, may have some value, look into the payslip of the employee, and you will find the facts.
6th February 2017
Dear sir/ madam,
I have one doubt if company provide intensive to employee show we can show in ecr sheet.
Thank's & Regards
Darsh Negi
26th February 2018 From India, Rudrapur
Dear Colleagues,
Hope you are doing well! Please help me with your valuable advice on the below matter
Q1. The query is for those employers who treat the PF dues on basis of Rs. 15000 limit on EPF wages and not the entire amount.
In an example of such employer, if some employee has PF wages defined as say Rs. 50000 /- per month. If such an employee is on Loss of pay for 15 days out of 30 in April, what is the PF deduction and contribution?
- Is it based on the fact that since the employee is paid Rs. 25000 /- for that month (15/30 X 50000), the PF should be 12% of 15000 (lower of 15000 and 25000) i.e. 1800 /- OR
- Should it be computed as PF wages is 15000 (lower of 50000 and 15000) and PF wages pro-rated as per LOP days is 15/30 of Rs. 1800 i.e. Rs. 900?
Q2. The query is for those employers who treat the PF dues on basis of the entire amount.
In an example of such employer, if some employee has PF wages defined as say Rs. 50000 /- per month. If such an employee is on Loss of pay for 15 days out of 30 in April, what should be the EPF wages? 50000 or 25000 or 15000?
15th May 2018 From India, Gurgaon
What is wages defined?
What is lower of ....and ...,
If your employee's PF qualifying salary is Rs 50000, and that employee is on loss of pay leave then the PF will be calculated on that reduced salary calculated on Rs 50000.
On the other hand, if your employee's salary is Rs 50000 but you pay contribution on a maximum of Rs 15000,then your PF qualifying salary is Rs 15000 and if an employee is on LOP then the proportionate reduction for the purpose of computation of PF should be from Rs 15000 and not from Rs 50000.
If you have anything more please post it clearly
21st May 2018 From India, Kannur
I have one doubt , when we talk about Gross Salary or Wages in ECR does it means gross salary of the perticular month? For example, in case of absent salary will be deducted and therefore the gross amount can change according to the attendance.
11th July 2018 From India, Gurgaon
In ECR the gross salary means the actual salary payable for the month.
12th July 2018 From India, Kannur
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