Is Overtime Pay Included in PF Contributions for Contract Workers? Seeking Advice

Dear Sir,

Please advise me if overtime wages are applicable for PF. We have contract laborers, and we are paying overtime as well. However, we are paying PF at 13.61%, which does not include overtime. Please advise me if overtime wages (charges) are applicable for PF.

Regards,
R. Gurumurthi

Hi Gurumurthy,

You are in Silvassa. Which company are you working for? I was there for almost 7 years.

Anyway, regarding your query, PF is not applicable on OT wages. However, ESI is applicable on the OT.

Thanks,
Amit

Dear Sir,

When will we receive the required documents from the labor contractor, such as registration certificate and a copy of the deposit challan? Please advise if we are paying the PF but the party is not. How can we determine if the PF is being paid or not? For example, if my labor contractor supplies labor to more than one company, how can I verify whether my company's PF amount has been deposited or not?

What are the PF-required documents that need to be maintained in the factory of my company in Silvassa D&N.H (U.T)? ESI is not applicable. My company is a newly started company. Are there any exemptions for PF and bonus, or is there a minimum bonus percentage required?

What are the required documents for PF?

Dear Member,

You can ask them to submit the following documents every month:
- PF CONTRIBUTION CHALLAN'S COPY
- WAGES SHEET
- FORM 12-A
- FORM 5
- FORM 10

At the end of the financial year, you may also ask for Form No. 3-A and Form No. 6A. By reviewing the above documents, you can verify whether the contractor is depositing PF regularly or not.

PF is always deducted on Basic Salary plus DA, but ESIC is deducted on each and every allowance except conveyance expenses paid on a daily basis.

Regards

Dear Seth,

As per my knowledge and the PF Act, there is no fixed rate of PF at 13.61% because the PF contribution rate is 12% for the employee and 12% for the employer. Additionally, there are other expenses such as administrative costs and EDLI, making the total contribution rate around 25.61%.

If you require further clarification, feel free to reach out to me via email or on my mobile at 9350578043.

Regards,
ASHOK KUMAR

Hi Ashok,

Yes, I am very clear about the PF percentage, but my reason for asking that question is that our friend Gurumurthi mentioned 13.61%, and that is why I wanted to know. By the way, I am Amith R Murthy, not the Amit Seth who is an active member of Cite HR. Thank you for your reply. I will definitely call you if any clarification is required.

Regards,
Amith R.

Hi All,

I believe 13.61% is included in the CTC, as it comprises of 12% (employee) + 12% (employer) + 1.61% (admin, EDL charges, etc.) also paid by the employer only. They might have included this 1.61% in the CTC as well.

Regards,
Vishnu

PF is not applicable on OVERTIME.

For more information: [White Eagle: Provident fund and Overtime Allowances](http://kuldeeprathore.blogspot.com/2009/11/whether-provident-fund-can-be-deducted.html)

Dear All,

Please let me know if ESI is applicable in Silvassa. Nearby, there are no local offices or hospitals where our factory is located.

Regards,
Mt. Carmel

Why can't you refer to the 1952 PF Act? As per our knowledge, there is no need to deduct. If you have any queries, kindly refer to the labor law book.