We made a revision for some employees in April 2012. All the employees were paid the revised salary except for one employee who was missed out. After 10 months, we realized this mistake. Therefore, we are paying the arrears for the 10 months to him this month, along with the revised salary.
Query on PF/ESI Contributions
I need to know if we also need to pay PF/ESI for him for the revised salary for the 10 months.
Thanks. All inputs will be greatly appreciated.
From India, Chennai
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Query on PF/ESI Contributions
I need to know if we also need to pay PF/ESI for him for the revised salary for the 10 months.
Thanks. All inputs will be greatly appreciated.
From India, Chennai
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For PF You have to pay arrears For ESI No Need to pay arrears Pls refer the attachment
From India, Hyderabad
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10From India, Hyderabad
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In your case, there is no revision of wages with retrospective effect for the employee who was missed out. However, you inadvertently omitted his case, and he should have been paid the revised salary effective from April 2012. Thus, it is a lapse on your part, and in my view, it does not qualify for exemption. You may have to pay the ESI contribution for the ten-month period as well.
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Hi sai, I think it is retrospective effective. Because they are revising the salary w.e.f 01 april.
From India, Hyderabad
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From India, Hyderabad
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What I understand from the post is that the company revised the salary in April 2012, and all but one were paid the revised salary from April 2012. Therefore, the company did not raise the issue of arrears in other cases but only in one case that was inadvertently omitted. He too should have received the revised salary from April 2012 but for the lapse on the part of the company. If the revised salaries are paid on a subsequent date or now to all employees, then the revision can be termed as retrospective. Therefore, the payment of arrears to the employee who was missed out on account of the company's lapse, in my view, cannot be strictly called a revision with retrospective effect. If so, there will be a discrepancy in the quantum of contribution paid. In the case of all others, the company might have paid contributions on the revised salary, and in one case, they will not pay on the revised salary for 10 months. However, the querist should clarify to clear the confusion.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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we have to pay the PF to the employee. if the basic has increased than the increased PF need to be given to the employee for the 10 onths
From India, Delhi
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From India, Delhi
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Hi is it necessary that PF will be deducted from the Basic Sal. Can this be skipped??
From India, New Delhi
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From India, New Delhi
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Yes, you need to pay ESI on arrears as you revised the salary not government. ESI is exempted on arrears, if govt. revised the wages from back date.
From India, Kota
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From India, Kota
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If I give increments to all my employees from April 2012 due to a reason I forgot, why should I be exempted from PF & ESI? Definitely, I will add those amounts to arrears, so why should I not get the benefit? We have to pay the PF & ESI on arrears. Please do the needful if I am wrong.
Thanking you,
Regards,
Ashish
From India, Pune
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Thanking you,
Regards,
Ashish
From India, Pune
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Yes, EPF should be compulsorily deducted and added manually in the EPF returns software but FPF is not compulsury because it is beyond Rs.6,500/- the benefit of factor will be lost
From India, Hyderabad
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From India, Hyderabad
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Minimum Wages, ESI & PF.pps
Splitting of minimum wages for PF in abeyance (1).pdf