Salary Arrears and Benefits: How Should We Handle PF and ESI Deductions?

Dear All, In our company, employees received a salary hike in April 2011, but they received that amount from June 2011 onwards. Additionally, we commenced providing PF and ESI benefits to our employees starting from June 2011.

My Questions Are:

- Do we now need to provide arrears to our employees with PF and ESI deductions, considering there was no PF contribution in April and May?
- Should arrears be calculated based on the Net Salary or Gross Salary?

Please respond urgently to the above queries.

Thank you,
Vaniananth :)

You need to pay arrears with ESI and PF deductions. Why was there no PF in the month of April? Arrears have to be calculated on Gross salary, and you should pay the net salary after PF and ESI deductions.

PF Payment Compliance

PF has to be paid from day one. Why have you not covered it from April? The PF office will question this if they find out your salary payment details from April onwards.