Am working as HR in a pvt firm in Tamil nadu. I would like to know the calculation professional tax. in our organisation we got about 230 employees. Can we deduct PT every month. Also want to know whether the amount can be paid to GOVT every six months. or is there any rules that the amount should not be kept with the employer for 6 months.
As per the new amendment in the EPF act in September 2014, if any employee salary, who was not previously covered under EPF, is more than Rs. 15000 then his whole contribution will go to PF account only.. No contribution will be made towards EPS..
Now, in the case of piece rate wages, since there can be a month in which his wages may come down and he would be under PF coverage anyway, then cover him with with a wages of not exceeding Rs 15000 so that there will be contribution towards Pension fund also. The Act does not make it mandatory that Pf should be contributed on the entire amount earned but it can be restricted to the prescribed percentage (12%) of Rs 15000. Therefore, even if the wages is Rs 17000, you can deduct PF on Rs 15000 and contribute employer's share to PF as well as Pension Fund.
Have you engaged Piece Rate Employee on your Rolls directly or through Contractor?What are the terms & Conditions of Appointment
PF coverage is on Fixed Basic/DA/VDA Per Month