Understanding PT, PF, and ESIC Deductions in Maharashtra: What's Applicable for Live and FNF Employees?

Hi all,

I want to know on which Allowances PT, PF, and ESIC deductions are applicable and not applicable in Maharashtra state for both Live and FNF employees. Please help.

Thanks in advance.

Regards, Amar

Provident Fund is to be deducted and contributed on Basic salary and Dearness Allowances only. ESI is to be taken on gross salary including Basic, DA, HRA, Conveyance, and other allowances which are paid in an interval of not more than two months. That is to say, if you have the practice of paying incentives/bonus on a monthly basis, that should also be taken as salary for ESI purposes. This means only reimbursements like travelling expenses and LTA are exempt from ESI.

For Profession Tax, the total income received by an employee through any means such as salary, bonus, etc., during the half-year will qualify. I didn't understand what Live and FNF employees are.

Regards, Madhu.T.K

Dear Sir,

Thank you for the information.

"Live employees" refer to those currently working, while "FNF" (Full and Final Settlement) pertains to employees who have quit.

I would like to inquire whether leave encashment, calculated based on the basic salary, should be considered for PF, PT, and ESIC deductions for both active and former employees when salaries are paid.

Regards,
Amar

For leave encashment, PF and ESI are not required to be deducted. While making F&F, PF and ESI till the date of working shall be deducted from the salary (till the date of settlement). As far as Profession Tax is concerned, you must have a record of it. If you have not deducted PT on a monthly basis, deduct the PT in full according to the slab when Full and Final Settlement is made.

Regards,
Madhu.T.K

Dear Sir,

If, at the time of final settlement, only leave encashment payments are made, will PT be deducted on it? (All his salary is paid in the previous month, and only the leave balance is paid in FNF.)

Regards,
Amar

PT is to be recovered from whatever amount is due to him, whether by way of salary or leave encashment. If you do not recover the PT from him, either in cash or as a deduction from dues payable, the company will be liable to pay the amount.

Regards,
Madhu.T.K

PF deduction - 12% of Basic + D.A, Limitation - Rs. 6500 (Basic + D.A)

ESIC - Employee's share - 1.75%

P.Tax - Rs. 5001-10000 = Rs. 175, Rs. 10001 and above = Rs. 200 per month

Do PT get deducted while calculating F-n-F?

The question arises because, for example: if an employee leaves on 19-Aug-10 and joins another company on 20-Aug-10, then the other company will definitely deduct PT. However, the current company from which he has resigned does not know whether he is going to join another company or not. So, during F-n-F, should the employer deduct PT?

If PT gets deducted during F-n-F, then why does the individual suffer deductions of PT twice in the same month?

Please clear the doubt. 🙂

PT due on the salary paid by the first company until the date of his departure will have to be deducted and paid by the first company. The portion of the salary paid by the second company, if it falls within the taxable brackets, should only be paid by the second company. In this scenario, the first company does not need to worry about his earnings after he has left the establishment. Similarly, the second company does not need to investigate whether the first company had deducted the PT or not.

Regards,
Madhu.T.K

hello all
I want to know about these forms which are necessary for PF and ESIC .Could any one tell me about these and if possible show a sample copy of these forms.
• Form 19
• Form 10C
• or Form 13+ Form 2 and Form 11
thanks

Dear Sameer,

It is for those whose income is >= 10,001. For February, it is 300 Rs, and for the rest of the month, it is 200 Rs. (Yearly, it is 2500 Rs).

Atul

Dear Sameer,

It is for those whose income is greater than or equal to 10,001. For February, it is 300 Rs, and for the rest of the month, it is 200 Rs (yearly it is 2500).

Atul

Dear Team, kindly suggest the following query. I am working in the construction industry, such as TATA. I am providing overtime (OT) to drivers along with their salary, which is included in the gross salary. My question is, should Provident Fund (PF) consider OT or not?

ESIC Contribution Rule

Please provide me with the correct writing rule for ESIC in this situation.

Regards, Prasad Apte HR Executive [Phone Number Removed For Privacy Reasons]