Dear All I would like to know can PF & ESI applicable on the overtime given to workers. Secondly how to calculate the PF & ESI for Deduction on Overtime Regards Vishal Setia
From India, Faridabad
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2From India, Faridabad
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Mr. Vishal,
E.S.I. ON OVERTIME
Whether E.5.1. Contributions are payable on overtime?
There has been differences of opinion of various High Courts on this point. Finally the Supreme Court has held that overtime wages will be liable for deductions for ESI's contributions. The employer is obligated to pay wages when the employee does work beyond his duty hours. This will be, in addition to payment of the wages an employee receives for normal work. In other words, both the remuneration received during the working hours and overtime constitute a composite wages and thereby it is a ‘wage' within the meaning of section 2(22) of the Act. Whatever remuneration, paid or payable for overtime work, forms wages under an implied term of the contract of employment and the remuneration paid therefore forms part of the 'wages' under section 2(22) of the Act. The Supreme Court considered elaborately and held that the Act is welfare legislation and the definition of wages is designedly wide.
Indian Drugs & Pharmaceuticals Ltd. etc. vs. Employees' State Insur· .nce Corporation, 1997 LLR 1 (Supreme Court).
Over time is not wage under PF act (PF wage = Basic + DA only)
All the best
From India, Vijayawada
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E.S.I. ON OVERTIME
Whether E.5.1. Contributions are payable on overtime?
There has been differences of opinion of various High Courts on this point. Finally the Supreme Court has held that overtime wages will be liable for deductions for ESI's contributions. The employer is obligated to pay wages when the employee does work beyond his duty hours. This will be, in addition to payment of the wages an employee receives for normal work. In other words, both the remuneration received during the working hours and overtime constitute a composite wages and thereby it is a ‘wage' within the meaning of section 2(22) of the Act. Whatever remuneration, paid or payable for overtime work, forms wages under an implied term of the contract of employment and the remuneration paid therefore forms part of the 'wages' under section 2(22) of the Act. The Supreme Court considered elaborately and held that the Act is welfare legislation and the definition of wages is designedly wide.
Indian Drugs & Pharmaceuticals Ltd. etc. vs. Employees' State Insur· .nce Corporation, 1997 LLR 1 (Supreme Court).
Over time is not wage under PF act (PF wage = Basic + DA only)
All the best
From India, Vijayawada
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Dear Raghunath Thanks for the clarification but 1. what about the Overtime allounces is it the part of wages under PF. 2. what is under section 7A of PF act regards Vishal Setia
From India, Faridabad
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From India, Faridabad
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Dear All,
An employee in my company has just turned 58 years old, but he is still working in my company until he reaches 60 years of age. Now, please advise me on how to fill the PF Challan because after 58 years, we are unable to submit the amount to the pension fund.
Please suggest.
Akhil Singh
Email: akhil_rathi@yahoo.co.in
Mobile: 9758506343
From India, Aligarh
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An employee in my company has just turned 58 years old, but he is still working in my company until he reaches 60 years of age. Now, please advise me on how to fill the PF Challan because after 58 years, we are unable to submit the amount to the pension fund.
Please suggest.
Akhil Singh
Email: akhil_rathi@yahoo.co.in
Mobile: 9758506343
From India, Aligarh
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Dear friends , P.F Deduction on Basic Salary & ESI on Total Gross salary . Regards, Akhilesh Shukla Officer (P&A)
From Oman
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From Oman
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls