Reg Statutory Deduction

Hi all, I have a query regarding the statutory deductions. We are deducting PF, ESI, PT from the employee salary according to their respective percentages. In this case if an employee attended his duties for one day he is getting less than zero as net take home, what will be the process in this case shall employee should bear these amount? Please give me your valuable suggestions. Regards Vijay

If an employee attends only one day at office, his salary will be limited to that one day's pay. The deduction will also be reduced proportionately and how can it be less than zero? Suppose monthly salary of an employee is Rs 6000 and he comes to office just one day, the rest of the days being leave without pay his gross salary for that month will be Rs 200 (6000/30) from which PF @ 12% of Rs 200, ESI @ 1.75% of Rs 200 and PT as applicable (it is also based on total income received by the employee) shall be deducted. The net is paid to the employee. How can it be less than zero? Regards, Madhu.T.K

Profession Tax is a state subject and may vary from state to state. Normally, all earnings of the employee while working with an employer stationed at a particular locality are taxable under Profession Tax. Therefore, Pt is taxable on the total salary earned by the employee. Regards, Madhu.T.K

Profetional tax deduct slab wise in Gujarat. Tax deduct on Gross Salary Salary PT 0 to 3000 0 3001 to 5999 20 6000 to 8999 80 9000 to 12000 150 12000< 200 If you have any confusan after read this massage so please mail me on [Login to view] Faruk Shaikh HR/Admin Executive

Mr Madhu is right. PT, IT etc. are statutory deductions the employer has to make irrespective of the provisions of the Payment of Wages Act 1936. But if one works only one day, his tax liability is to that extent only.

Dear memebers, i need to know that in our org LTA , MEDICAL N EX- GRATIO is same as basic and now IAM LTA N MEDIACAL for 6 months after the appraisal of the employees so suppose my calculation says is lta medical (before appraisal)= 6750(lta) 6750 (medical) ex gratio= 13500. After appraisal new sal is : lta- 8500, medical- 8500, ex-gratio= 17000. so this times' lta n medical i have calculated by this method i.e. 6750/12*6+ 8500/12*6= 3375+4250. I understand this method wat i need to know is how do i calculate for 12 months and how do i calculate for the next 6 months...:confused: Plss help!!!! regards :)

Hi Vijay, Regarding the deductions on PF & ESI you may do it as per the statutory % for that employee whereas for PT I need the some details i.e. your place of work (region) for slab rate. Add to that you may also contact the local panchayat or whom you are remitting the PT because region to region it varies, some they are paying on monthly basis & some on half yearly. The better way is to consult panchayat / concerns & do it. Regards, R.Rathina Kumar If an employee attends only one day at office, his salary will be limited to that one day's pay. The deduction will also be reduced proportionately and how can it be less than zero? Suppose monthly salary of an employee is Rs 6000 and he comes to office just one day, the rest of the days being leave without pay his gross salary for that month will be Rs 200 (6000/30) from which PF @ 12% of Rs 200, ESI @ 1.75% of Rs 200 and PT as applicable (it is also based on total income received by the employee) shall be deducted. The net is paid to the employee. How can it be less than zero? Regards, Madhu.T.K[/quote]

dear vijay i want to know the full form of PT. i never heard about pt. please tell me what is the pt

hi alls i am mahender gupta from faridabad haryana. i have confused from some provident fund polices. Government has made a rule that the below the 6 months service the employee is not applicable for the pension fund. But the employer has paid the both share for his employees. is it legal. I want to know that in what rule they amend and where goes this fund. i also want to know that can we challenge this rule in civil court.