PROVIDENT FUND - Is it correct to include City Compensatory Allowance for calculating the PF?

T S A Padmanabhan
Dear All, Is it correct to include City Compensatory Allowance for calculating the PF?
A subordinate's gross salary is Rs.3,900/-; consisting of basic+da+conveyance etc. Is his salary meeting the definition of minimum wages? Should'nt the basic+da only is to be considered as minimum wage?
Will a sweeper who comes and cleans the office daily only for about an hour, and who is not in the pay roll be eligible for ESI. Often he comes along with his wife for cleaning the place.
Are there any case laws on the subject?
T S A Padmanabhan
debtosh
For Pf it is basic and DA but ESI in on gross salary . the sweeper also comes within the coverage of PF and ESI even though he is working for one hour
svsrana
minimum wage can be broken into 2 components only ie. Basic and DA. no further allowances are admissable within the same.
ideally a sweeper should be on par with comapany employees.
The first question is how do you determine the compensation for an hour of work daily.
pls read "Ethical trading initiative" esp the section meant for homeworkers. then check out the work done by Self employed women association, finally the jigsaw puzzle shall fall into place after reading about Govt schemes meant for social inclusion of marginalised communities.
if you have further queries feel free to write.
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athul79
In our organisation, only basic pay and other components of salary like technical allowance, fixed personal allowance, which are counted for dearness allowance calculation are counted for P.F calculation(if you mean the amount of pf contribution to be deducted from the salary).
But such components like D.A, HRA,CONVEYANCE ALLOWANCE CITY COMPENSATORY ALLOWANCE ARE NOT INCLUDED FOR PF CALCULATION.
with regards,
aadhirai
rajeevdixit
Hello friends
PF is deducted ONLY on Basic + DA.( not on CCA etc)
secondly if ESI/PF is deductable for 1 hour daily working employee then how you are going to maintian his attendance ? and in that case then you
have to give him one day leave for every 20 days ? NO i think the sweeper who works just for one hour daily he is not entitled for any PF/ESI .
Regards
Rajeev Dixit
leo2471983
Dear All,
The point raised by Rajeev is very much valid. If we deploy a casual labor for say even 10 days, then how can we maintain all the statutory requirements?? chalans/ registers!!
Currently we are undergoing through the same problem of PF cover over casual labors.
Any body having a broader view on this issue!!
Gireesh_Content_Writer
Hi,
Shouldn't HR come out of the restrictions placed by law and DO MORE for employees than what law forces. This can better motivate employees.
In the meantime read my latest post on Performance Driven Culture.
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M.Manimegalai
Hi, great Morning to all,
1) i want to know the concept of Multi ESI and PF?
2) The annual returns of ESI and PF
3) Arrears handling with PF or ESI Applicable option.
4) Employer code number management
5) How to calculate the EMI in Loan settings
6) The full details format of Leave management
Can any one help out me, Kindly send the answer to my mail id, [
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Thanks and regards,
Megala
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