Dear Seniors, Please confirm if we should deduct PF on over time paid to employees. Also would like to know about ESI. Regards
From India, Chandigarh
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From India, Chandigarh
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No need to pay PF on overtime because nobody merges the overtime amount into the basic amount, so that question doesn't arise. However, you must pay professional tax on all wages, including the overtime amount.
From India, Hyderabad
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191From India, Hyderabad
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ESI is applicable to pay on overtime if it doesn’t exceeds your gross to 15000
From India, Bangalore
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From India, Bangalore
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The payment of overtime is not a part of the wages as defined under the Payment of Wages Act. It is not necessary to include OT wages in the computation of PF contribution.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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Do we not deduct PF also when paying arrear of Minimum Wages. Kindly clarify
From India, Chandigarh
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From India, Chandigarh
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Dear Mrs. Chopra,
If any arrears are being paid against any increase or revision of the salary structure under the definition of Wages, in such a case, PF deduction is a must but not on the arrears payment other than wages.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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If any arrears are being paid against any increase or revision of the salary structure under the definition of Wages, in such a case, PF deduction is a must but not on the arrears payment other than wages.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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Amended Labor Laws.doc
SALARY with out PF Deduction.xls