Dear Sir / Madam
My firm has recently crossed 20 employees strength and has taken registration under EPF
I am working in the accounts section and I am responsible for preparing salary statement and deducting ESIC. Since we have registered for EPF my responsibility will also include deduction of PF from employees salary.
Before under taking the same I want to be clear about the concepts of PF. My Main doubts are as follows
1. What shall constitute salary as per EPF? The salary structure of my firm is comprised of basic salary plus commission on sales (this is paid to sales staff and it is contingent on monthly sales volume.
Should PF be deducted only on basic or should it be deducted on the basic salry plus commission amount? Presently for deducting Staff ESIC Contribution, we are considering the salary as Basic salary plus commission amount. Please advise as to which method is correct for arriving at salary for the purpose of ESIC and PF
2. Since My employer is now registered under EPF, when a new employee joins (who is already a member of EPF), should my employer compulsorily deduct Pf even if the new joinees salary is above Rs.15,000? Also, if a new employee (who is not a member of EPF previously) joins with a salary above 15,000, is it up to the employer to decide whether or not to grant PF to the new joinee (if the new joinee decides he/she wants to join PF).
3. Presently, my employer allows 2 earned leave per month. Any un-availed earned leave at the end of the month is added to the salary and paid to the employee. Should the earned leave encashment amount be added to the PF salary?
4. Some staff in my firm get conveyance allowance and sales persons are given cash reimbursements of the actual travelling expenses incurred. Should either of these be included for PF salary calculation?
Best Regards
John
My firm has recently crossed 20 employees strength and has taken registration under EPF
I am working in the accounts section and I am responsible for preparing salary statement and deducting ESIC. Since we have registered for EPF my responsibility will also include deduction of PF from employees salary.
Before under taking the same I want to be clear about the concepts of PF. My Main doubts are as follows
1. What shall constitute salary as per EPF? The salary structure of my firm is comprised of basic salary plus commission on sales (this is paid to sales staff and it is contingent on monthly sales volume.
Should PF be deducted only on basic or should it be deducted on the basic salry plus commission amount? Presently for deducting Staff ESIC Contribution, we are considering the salary as Basic salary plus commission amount. Please advise as to which method is correct for arriving at salary for the purpose of ESIC and PF
2. Since My employer is now registered under EPF, when a new employee joins (who is already a member of EPF), should my employer compulsorily deduct Pf even if the new joinees salary is above Rs.15,000? Also, if a new employee (who is not a member of EPF previously) joins with a salary above 15,000, is it up to the employer to decide whether or not to grant PF to the new joinee (if the new joinee decides he/she wants to join PF).
3. Presently, my employer allows 2 earned leave per month. Any un-availed earned leave at the end of the month is added to the salary and paid to the employee. Should the earned leave encashment amount be added to the PF salary?
4. Some staff in my firm get conveyance allowance and sales persons are given cash reimbursements of the actual travelling expenses incurred. Should either of these be included for PF salary calculation?
Best Regards
John