PF & ESI Deduction For OT

Dear All,
Thanks alot for your valuable reply.
Also please clarify that any one getting salary less than Rs. 10000/- we deduct the ESI from their salary. incase he getting the salary more than Rs. 10000/- (along with OT) any compulsion to pay the ESI. (sometimes the OT amount will vary every month.)
Please clarify in this........
Regards,
Mathangi .S

I do not agree with the above suggestion. As per the provisions of Sec. 6 of PF Act, it is leviable on Basic wages, Dearness Allowance and Retaining Allowance. Basic wage is defined under section 2(b) of the PF Act. According to that one , basic wage means all emoluments which are earned by an employee while on duty or on leave with wages but does not include house rent allowance, overtime allowance , bonus, commission or any other similar allowance payable to an employee. Hence all the allowances are not exempted. Now a days the PF Inspectiors are insisting contributions on conveyance allowance, washing allowance and special allowances also. Plz check up with the enforcement Officer on the above point.