Hi all, what salary should be mentioned during new member PF registration? Is it the fixed basic salary or the earned basic for that particular month?
Example Calculation:
For example, if a worker (i.e., a daily wages paid worker) earns Rs. 609.18 per day, then Rs. 609.18 x 26 = Rs. 15,838.68. In this case, while registering a new UAN for this worker, what EPF salary should be mentioned on the EPF portal?
From India, Warangal
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12Example Calculation:
For example, if a worker (i.e., a daily wages paid worker) earns Rs. 609.18 per day, then Rs. 609.18 x 26 = Rs. 15,838.68. In this case, while registering a new UAN for this worker, what EPF salary should be mentioned on the EPF portal?
From India, Warangal
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When registering a new member for PF (Provident Fund), you need to mention the "Basic Wages" of the employee. Here’s how you determine what salary to mention:
Understanding Basic Wages:
According to the EPF (Employees' Provident Fund) rules, "Basic Wages" refers to all remuneration earned by an employee while on duty, on leave, or on holidays with wages in accordance with the terms of the employment contract and paid or payable in cash to him. It does not include any of the following:
- Overtime earnings
- House rent allowance
- Bonus
- Commission or any other allowance
Calculation for Daily Wage Worker Example:
For a daily wage worker earning Rs. 609.18 per day:
If the worker works 26 days in a month, the total earnings would be Rs. 609.18 x 26 = Rs. 15,838.68.
EPF Salary for Registration:
When registering this worker for PF, you should mention the "Basic Wages" earned during the month. In this case, it would be Rs. 15,838.68 for the specific month.
Important Notes:
- Ensure that the salary mentioned as "Basic Wages" aligns with what the worker actually earned during the month, as per the terms of their employment.
- Exclude any additional components like overtime pay, house rent allowance, or other allowances.
By accurately reporting the Basic Wages, you comply with EPF regulations and ensure that the worker's PF contributions are calculated correctly based on their earnings.
From India, Guwahati
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Understanding Basic Wages:
According to the EPF (Employees' Provident Fund) rules, "Basic Wages" refers to all remuneration earned by an employee while on duty, on leave, or on holidays with wages in accordance with the terms of the employment contract and paid or payable in cash to him. It does not include any of the following:
- Overtime earnings
- House rent allowance
- Bonus
- Commission or any other allowance
Calculation for Daily Wage Worker Example:
For a daily wage worker earning Rs. 609.18 per day:
If the worker works 26 days in a month, the total earnings would be Rs. 609.18 x 26 = Rs. 15,838.68.
EPF Salary for Registration:
When registering this worker for PF, you should mention the "Basic Wages" earned during the month. In this case, it would be Rs. 15,838.68 for the specific month.
Important Notes:
- Ensure that the salary mentioned as "Basic Wages" aligns with what the worker actually earned during the month, as per the terms of their employment.
- Exclude any additional components like overtime pay, house rent allowance, or other allowances.
By accurately reporting the Basic Wages, you comply with EPF regulations and ensure that the worker's PF contributions are calculated correctly based on their earnings.
From India, Guwahati
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