PF Deduction on VDA Points
Recently, PF authorities visited and asked us to pay PF on VDA points as well. Please confirm whether the PF will be deducted on VDA or not. The authorities did not accept the attachment provided.
URGENT, PLEASE CONFIRM.
Regards,
PBS KUMAR
From India, Kakinada
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592Recently, PF authorities visited and asked us to pay PF on VDA points as well. Please confirm whether the PF will be deducted on VDA or not. The authorities did not accept the attachment provided.
URGENT, PLEASE CONFIRM.
Regards,
PBS KUMAR
From India, Kakinada
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Dear PBS Kumar, Yes, EPF is applicable on Basic+DA. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear Abbas ji, please check my query. I am asking whether Variable Dearness Allowance (VDA), which is related to the CPI number declared by the Labour Department every six months, is applicable to PF or not.
Regards,
PBS KUMAR
From India, Kakinada
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Regards,
PBS KUMAR
From India, Kakinada
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Dear PBS Kumar, Yes, the DA in connection with Consumer Price Index is applicable for PF contribution. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Yes, EPF Contribution will be deduct on Variable Dearness Allowance. Regards Sachin Verma
From India, New Delhi
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From India, New Delhi
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Dear Friends, PLEASE SUPPLY ANY CASE LAW ON VDA IS APPLICABLE FOR PF. Regards, PBS KUMAR
From India, Kakinada
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From India, Kakinada
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Kindly go through Section 29(1) of the EPF Act 1952 (Chapter V).
Contributions
(1) The contributions payable by the employer under the Scheme shall be at the rate of ten percent of the basic wages, dearness allowance (including the cash value of any food concession), and retaining allowance (if any) payable to each employee to whom the Scheme applies. Provided that the above rate of contribution shall be twelve percent in respect of any establishment or class of establishments which the Central Government may specify in the Official Gazette from time to time under the first proviso to subsection (1) of Section 6 of the Act.
Regards,
Abbas. P.S
From India, Bangalore
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Contributions
(1) The contributions payable by the employer under the Scheme shall be at the rate of ten percent of the basic wages, dearness allowance (including the cash value of any food concession), and retaining allowance (if any) payable to each employee to whom the Scheme applies. Provided that the above rate of contribution shall be twelve percent in respect of any establishment or class of establishments which the Central Government may specify in the Official Gazette from time to time under the first proviso to subsection (1) of Section 6 of the Act.
Regards,
Abbas. P.S
From India, Bangalore
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There cannot be any doubt about it, EPF on VDA is very much applicable for both employees' subscription and employers' contribution; of course, the overall ceiling will apply. This is because it is nothing but a part of DA only, though the formula is linked to CPI.
From India, Bangalore
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From India, Bangalore
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Yes, PF should be deducted on Basic + DA.
Generally, the term Basic Salary is inclusive of Actual Basic + Variable Dearness Allowance. The Minimum Wage declared by the Labour Department is also inclusive of Actual Basic + Variable Dearness Allowance.
It means, if the salary of a workman is the same as the minimum wage declared by the Government, then PF will be deducted on the total salary.
From India
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Generally, the term Basic Salary is inclusive of Actual Basic + Variable Dearness Allowance. The Minimum Wage declared by the Labour Department is also inclusive of Actual Basic + Variable Dearness Allowance.
It means, if the salary of a workman is the same as the minimum wage declared by the Government, then PF will be deducted on the total salary.
From India
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