Dear Sirs,
I'm not sure if the attandance bonus, ot and travel allowance that we pay to our factory workers will be covered under PF & ESI.
At the moment, only the salary that we pay to our workers is being covered under ESI and PF. For the overtime, travel allownace and attendance bonus that we pay them in the separately without salary we are not deducting pf and ESI.
Please advise if this is right? Looking forward to your valuable feedbacks.
Thanks,
RK
From India, Madras
3I'm not sure if the attandance bonus, ot and travel allowance that we pay to our factory workers will be covered under PF & ESI.
At the moment, only the salary that we pay to our workers is being covered under ESI and PF. For the overtime, travel allownace and attendance bonus that we pay them in the separately without salary we are not deducting pf and ESI.
Please advise if this is right? Looking forward to your valuable feedbacks.
Thanks,
RK
From India, Madras
Dear Sir,
Thank you for your valuable feedback.
I understand from your reply that OT and attendance bonus should also be included while deducting the 1.75% from the employee side but not travell allowance.
Any of these three to be added while deducting PF 12% fom employee side?
Please help.
Thanks,
Rk
From India, Madras
Thank you for your valuable feedback.
I understand from your reply that OT and attendance bonus should also be included while deducting the 1.75% from the employee side but not travell allowance.
Any of these three to be added while deducting PF 12% fom employee side?
Please help.
Thanks,
Rk
From India, Madras
As per factory's act 1948 section 59 (2), PF also to be deducted on overtime paid to the employees as this is a part of the salary. This has been cleared by a recent judgement of the madras high court as well.
From India, New Delhi
From India, New Delhi
Thank You Harpreet ji, In my knowladge Basic And DA is the base of PF calculation. I donot know about the over time. Can you provide the jugment copy about the same. Mukesh Kumar
From India, Bareli
From India, Bareli
no it is not applicable on bonus or any travel allowance paid extra. This is to be deducted only on basic salary or Overtime paid. The percentage of the basic salary should be calculated on basic for pf calculation on overtime.
For eg: if my salary is 10000 out of which 6000 is my basic salary which is 60%. I have done an overtime for which I would be getting Rs. 500. On 500 you should calculate basic part of 60% which is 300. On this 300 rupees you need to deduct pf of 12% which is Rs. 36
From India, New Delhi
For eg: if my salary is 10000 out of which 6000 is my basic salary which is 60%. I have done an overtime for which I would be getting Rs. 500. On 500 you should calculate basic part of 60% which is 300. On this 300 rupees you need to deduct pf of 12% which is Rs. 36
From India, New Delhi
The PF deduction will be calculated Basic + DA . If you paid in quarterly attendance allowance the payment is not covered under ESI P. Xavier Raj
From India, Pondicherry
From India, Pondicherry
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
Coverage of Construction Labour under PF letter of 15 O-page-001.jpg