I have a query. If a company opts for PF deduction on actual basic wages, should the company deduct the pension fund on arrears paid?
Example:
PF wages (Basic + DA) for July '13 = 15,000, Pension Fund Contribution = 541
Arrears paid in August 2013 = 2,000
Total wages paid for August = 15,000 + 2,000 (arrears)
As such, the deduction for the pension fund for August should be 541 for the August salary and 167 (2,000 * 8.33/100) for July arrears. Should no pension fund contribution be made for July arrears?
From India, Delhi
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Example:
PF wages (Basic + DA) for July '13 = 15,000, Pension Fund Contribution = 541
Arrears paid in August 2013 = 2,000
Total wages paid for August = 15,000 + 2,000 (arrears)
As such, the deduction for the pension fund for August should be 541 for the August salary and 167 (2,000 * 8.33/100) for July arrears. Should no pension fund contribution be made for July arrears?
From India, Delhi
Acknowledge(0)Amend(0)
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PF Pension fund contribution beyond 58 years of age.pdf