PF Is Applicable on Overtime salary - employee demanded to show his OT in the bank for loan purposes

We pay the overtime salary in cash and maintain records separately. The question is, one of our employees wants to take a loan from the bank and his monthly earning in the bank is 23,400 rs + overtime is nearly about 10,000 rs and demanded to show his OT in the bank for loan purposes.

What if I mention his OT in the bank? PF is applicable on OT?

Note:- Bank will not accept the Overtime salary letter for Loan purposes.

Hi,

PF not applicable for OT payment.

OT is a variable pay ( which means differ from month to month)and hence Bank will not consider for the purpose of loan eligibility.

You may issue a certify letter to the employee mentioning his DOJ, fixed salary details and also add a word that the employee is eligible for OT payment which is a variable component.