I have some questions:
1. What is the contribution in the Labour Welfare Fund from the employer and employee? When, where, and how does the contribution have to be submitted?
2. What are the slabs of Professional Tax?
3. What is the total contribution of the employer in PF?
4. What is the exact formula for Gratuity?
From India, Mumbai
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21. What is the contribution in the Labour Welfare Fund from the employer and employee? When, where, and how does the contribution have to be submitted?
2. What are the slabs of Professional Tax?
3. What is the total contribution of the employer in PF?
4. What is the exact formula for Gratuity?
From India, Mumbai
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Dear Mr. Nitin,
Good morning.
For your query, I can answer for 2 only:
1. The percentage of employer contribution of PF is 12% of the basic ceiling wages @ Rs. 6500/- p.m.
2. For gratuity calculation, the formula is: Basic/26 * 15 * number of years served.
With best wishes,
R Shanti
From India, Mumbai
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Good morning.
For your query, I can answer for 2 only:
1. The percentage of employer contribution of PF is 12% of the basic ceiling wages @ Rs. 6500/- p.m.
2. For gratuity calculation, the formula is: Basic/26 * 15 * number of years served.
With best wishes,
R Shanti
From India, Mumbai
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Hi,
Please find below the updated tax slabs:
0 to 5000 - 0/-
5001 to 6000 - 60/-
6001 to 10000 - 80/-
10001 to 15000 - 100/-
15001 to 20000 - 150/-
Above 20001 - 200/-
Regards,
Janardhan
From India, Hyderabad
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Please find below the updated tax slabs:
0 to 5000 - 0/-
5001 to 6000 - 60/-
6001 to 10000 - 80/-
10001 to 15000 - 100/-
15001 to 20000 - 150/-
Above 20001 - 200/-
Regards,
Janardhan
From India, Hyderabad
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Labour Welfare Fund and Profession Tax are state subjects and, therefore, they may vary from state to state. In the case of the Labour Welfare Fund, there are various welfare funds, and the rates applicable to each fund, depending on the industry, will change.
For the calculation of EPF contribution, not only the basic salary but also dearness allowance should be taken into account. Similarly, gratuity is calculated based on the last drawn salary, which should include the dearness allowance paid. No amount should be deducted from the salary payable to an employee towards gratuity since it is a payment solely by the employer.
Regards, Madhu.T.K
From India, Kannur
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For the calculation of EPF contribution, not only the basic salary but also dearness allowance should be taken into account. Similarly, gratuity is calculated based on the last drawn salary, which should include the dearness allowance paid. No amount should be deducted from the salary payable to an employee towards gratuity since it is a payment solely by the employer.
Regards, Madhu.T.K
From India, Kannur
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Dear Mr. Nitin hello employees contribution is 12 % in p.f. of basic salary rs. 6500/- last Basic of employee/26*15*no of years served. formula for gratuity thanks rds Dinesh
From India, Gurgaon
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From India, Gurgaon
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As per your email request, PT slabs differ from state to state. PF is set at 12% on a basic of 6500. After this, PF is optional, and Gratuity is calculated based on the existing BASIC at the time of leaving (basic/26*15*number of years). ESI rates are Employer 4.75% and Employee 1.75%.
Regards,
Raghu
From India, Bhopal
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Regards,
Raghu
From India, Bhopal
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Dear sir, I want to know that whats benefit is to be taken by LWF as a employee.If every month lwf in deduct from my salary can it be return?
From India, Noida
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From India, Noida
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Dear All, I want to know- 1. what is the benefit of Professional tax. 2. Is professional tax is applicable where is LWF.
From India, Delhi
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From India, Delhi
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Difference Between Profession Tax and Labour Welfare Fund
Profession Tax and Labour Welfare Fund are two different things. The former is a tax on income/revenue that an employee or professional should pay to the local administration (Panchayat/Municipality/Corporation). Being a tax, we cannot expect any direct benefit from it besides the development activities that the local administration undertakes for the area and the direct deduction of the amount of profession tax paid from the income of the employee/professional when computing their income tax.
On the other hand, a welfare fund is a contribution towards a fund for the benefit of workers who contribute to it. Since the contribution is a small amount, the benefits will also be limited. However, there are schemes for scholarships for children of the members, medical aid, and in some funds like the Kerala Shops and Commercial Establishment Workers Welfare Fund, provisions for pension payments, maternity benefits, and more are also included.
Regards,
Madhu.T.K
From India, Kannur
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Profession Tax and Labour Welfare Fund are two different things. The former is a tax on income/revenue that an employee or professional should pay to the local administration (Panchayat/Municipality/Corporation). Being a tax, we cannot expect any direct benefit from it besides the development activities that the local administration undertakes for the area and the direct deduction of the amount of profession tax paid from the income of the employee/professional when computing their income tax.
On the other hand, a welfare fund is a contribution towards a fund for the benefit of workers who contribute to it. Since the contribution is a small amount, the benefits will also be limited. However, there are schemes for scholarships for children of the members, medical aid, and in some funds like the Kerala Shops and Commercial Establishment Workers Welfare Fund, provisions for pension payments, maternity benefits, and more are also included.
Regards,
Madhu.T.K
From India, Kannur
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Dear reddy, 1.PT slabs were changed by govt. of Andhra pradesh from 04/2013 (state to state PT is change) slabs are 1.15000 to 20000 Rs150 2.20001 above Rs200
From India, Hyderabad
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From India, Hyderabad
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TN Labour Welfare Fund 2018.pdf
Statewise Labour Welfare Fund.xls