Industrial Relations And Labour Laws
Legal Advisor Compliance And Benefit
Accounts & Finance & Hr
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,
12th January 2017 From India, Silvassa
13th January 2017 From India, Kannur
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
Thanks and regards,
17th January 2017 From India, Kochi
for 16 (TDS calculation )
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
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
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 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
As per the PF Act except HRA all other components to be taken into consideration for PF wage. if the wage exceeds the PF Ceiling ie Rs 15000 pay only for pf ceiling .(15000 *12 % = 18000) in case of lop pay for earned wages.
4th July 2019 From India, Madras