We have employees working of Piece rated, how to calculate No.of days and PF & ESIC deductions on the Piece wages earned. Kindly suggest suitable solutions on this.
Thanks in advance..
Regards,
K.SAIKISHORE
From India
51Thanks in advance..
Regards,
K.SAIKISHORE
From India
Hi ,
If i am Not wrong you have to follow the below procedure :
If you have piece rated employees it means you are paying them
on per piece basis and raising a bill as per the total piece produced
in a month. So on this bill the 60% will be the labour charge and on
this 60% you have to deduct PF and ESI as per rules .
Regards
Rajeev Dixit
From India, Bangalore
If i am Not wrong you have to follow the below procedure :
If you have piece rated employees it means you are paying them
on per piece basis and raising a bill as per the total piece produced
in a month. So on this bill the 60% will be the labour charge and on
this 60% you have to deduct PF and ESI as per rules .
Regards
Rajeev Dixit
From India, Bangalore
Thanks Rajeev,
Here we have a problem of calculating number of days worked..
While uploading in online we have to show the working days in ESI & PF. Our employees are working of target based. Each employee has to complete 2000 records for which we pay 2rupees for each record. The employee may complete the target in a week or in a month. Wages are paid to him only at the end of every month by processing payroll.
Regards,
K.SAIKISHORE
From India
Here we have a problem of calculating number of days worked..
While uploading in online we have to show the working days in ESI & PF. Our employees are working of target based. Each employee has to complete 2000 records for which we pay 2rupees for each record. The employee may complete the target in a week or in a month. Wages are paid to him only at the end of every month by processing payroll.
Regards,
K.SAIKISHORE
From India
Dear Mr. 
,
Please click Piece Rate Systems, for the ESI and PF of piece rated employees the monthly earnings had to be considered.
EPF: If an employee earns Rs. 6500 or below the exempted limit of Rs. 6500/- then he can be enrolled for PF. Besides if the monthly earnings increases above the exempted limit he should still be a member in PF.
ESI: If the employees earnings falls below the exempted limit of Rs. 15000/- then he is said to be insured by the ESIC under ESI scheme. In such case of any increase in his monthly earnings above the limit he can then not required to be an ESI IP. You can calculate as [Wages earned during a complete wage period / the number of days for which the employee worked and multiply the product by 26]
From India, Visakhapatnam
Please click Piece Rate Systems, for the ESI and PF of piece rated employees the monthly earnings had to be considered.
EPF: If an employee earns Rs. 6500 or below the exempted limit of Rs. 6500/- then he can be enrolled for PF. Besides if the monthly earnings increases above the exempted limit he should still be a member in PF.
ESI: If the employees earnings falls below the exempted limit of Rs. 15000/- then he is said to be insured by the ESIC under ESI scheme. In such case of any increase in his monthly earnings above the limit he can then not required to be an ESI IP. You can calculate as [Wages earned during a complete wage period / the number of days for which the employee worked and multiply the product by 26]
From India, Visakhapatnam
Dear Sharmila Das
Can you pls explain the below condition.
Employee is given target of completing 2000 records for Rs.2 each.
One Employee has completed the target in 25days and earned Rs.4000/-
Second Employee has completed the target in 10days and earned Rs.4000/-
So, how many days to be considered in above both cases.
Pls guide.
Regards,
K.SAIKISHROE
From India
Can you pls explain the below condition.
Employee is given target of completing 2000 records for Rs.2 each.
One Employee has completed the target in 25days and earned Rs.4000/-
Second Employee has completed the target in 10days and earned Rs.4000/-
So, how many days to be considered in above both cases.
Pls guide.
Regards,
K.SAIKISHROE
From India
Dear Mr. Sai Kishore,
The calculation always depends on the wage period and wage amount acquired for peice rated employees at the end of each month, no matter whatever the target is. The actual days considered should be 25 and 10 respectively. For instance,
2000*2= 4000 (wage earned)/ 25 = 160 Rs. for that 25 days
160*26 actual days = 4160/- will be his waged earned for that month
Similarly,
2000*2 = 4000/10 = 400Rs.for 10 days
400* 26 = 10400/- will the wages earned for that month.
From India, Visakhapatnam
The calculation always depends on the wage period and wage amount acquired for peice rated employees at the end of each month, no matter whatever the target is. The actual days considered should be 25 and 10 respectively. For instance,
2000*2= 4000 (wage earned)/ 25 = 160 Rs. for that 25 days
160*26 actual days = 4160/- will be his waged earned for that month
Similarly,
2000*2 = 4000/10 = 400Rs.for 10 days
400* 26 = 10400/- will the wages earned for that month.
From India, Visakhapatnam
Dear Ms.Sharmila
In such case. while filing monthly contributions in ESIC online
do we need to show as below.
Employee one : No.days worked is 25 and wages earned 4160/-
Employee two : No.days worked is 10 and wages earned 10400/-
Regards,
K.SAIKISHORE
From India
In such case. while filing monthly contributions in ESIC online
do we need to show as below.
Employee one : No.days worked is 25 and wages earned 4160/-
Employee two : No.days worked is 10 and wages earned 10400/-
Regards,
K.SAIKISHORE
From India
Dear Sai kishore
Sec.6 of the P.F Act says that contribution shall be paid on the basic wages + dearness allowance e+ retaining allowance, if any + cash value of food concession, if any. Sub Para(3) of Para 29 of the P.F Scheme 1952 says that the contribution shall be paid on the wages as stated above drawn by an employee during the month whether paid on daily or weekly, fortnightly or monthly basis.Thus the above provisions make it clear that contribution shall be calculated on the total wages paid by the employer in a month subject to the wage cap of Rs.6500/-p.m. I observe that though you have been paying the wages to the employees at piece rate but paying them at the end of the month, The wages drawn by each employee cited by you in your example in a month will be Rs.4000/- only. Thus in my view the contribution in both the cases will be paid only on Rs.4000/-per month.The P.F Act does not envisage any prospect of calculating contribution on the earning capacity of an employee in a month but on the basis of the wages actually drawn by them in a month.Members can correct me if I am wrong citing provisions.
B.Saikumar
Mumbai.
From India, Mumbai
Sec.6 of the P.F Act says that contribution shall be paid on the basic wages + dearness allowance e+ retaining allowance, if any + cash value of food concession, if any. Sub Para(3) of Para 29 of the P.F Scheme 1952 says that the contribution shall be paid on the wages as stated above drawn by an employee during the month whether paid on daily or weekly, fortnightly or monthly basis.Thus the above provisions make it clear that contribution shall be calculated on the total wages paid by the employer in a month subject to the wage cap of Rs.6500/-p.m. I observe that though you have been paying the wages to the employees at piece rate but paying them at the end of the month, The wages drawn by each employee cited by you in your example in a month will be Rs.4000/- only. Thus in my view the contribution in both the cases will be paid only on Rs.4000/-per month.The P.F Act does not envisage any prospect of calculating contribution on the earning capacity of an employee in a month but on the basis of the wages actually drawn by them in a month.Members can correct me if I am wrong citing provisions.
B.Saikumar
Mumbai.
From India, Mumbai
Dear Sai Kumar, for sai kishore firm case how to calculate the no. of days for pf online returns regards
From India, Hyderabad
From India, Hyderabad
Dear Prasad
I have only interpreted the provisions of P.F Scheme to avoid confusion in calculation of the contribution.If the contribution is calculated on the basis of the assumption that what each employee would have earned in a month had he worked for 30 days on the basis daily rate of his earnings calculated by dividing his total earnings a by the number of days, it would be only a hypothetical wage but not a wage earned by him while on duty within the meaning of Sec.2(b) of the P.F Act and thus does not firstly fit into the provision sof the Act and it also would result in discrimination as the rate of contributions for the two employees would be different though they recived equal wages in a month.
So far as the doubt of mentioning the number of days in the online procedurein the example given by Saikishore, I am not acquaited with the on line procedure.Let us wait for other memebers to come out for solutions of reconciling the substantive provisions of teh Act and the procedure.
B.Saikumar
HR & Labour Law Procedure
Mumbai
From India, Mumbai
I have only interpreted the provisions of P.F Scheme to avoid confusion in calculation of the contribution.If the contribution is calculated on the basis of the assumption that what each employee would have earned in a month had he worked for 30 days on the basis daily rate of his earnings calculated by dividing his total earnings a by the number of days, it would be only a hypothetical wage but not a wage earned by him while on duty within the meaning of Sec.2(b) of the P.F Act and thus does not firstly fit into the provision sof the Act and it also would result in discrimination as the rate of contributions for the two employees would be different though they recived equal wages in a month.
So far as the doubt of mentioning the number of days in the online procedurein the example given by Saikishore, I am not acquaited with the on line procedure.Let us wait for other memebers to come out for solutions of reconciling the substantive provisions of teh Act and the procedure.
B.Saikumar
HR & Labour Law Procedure
Mumbai
From India, Mumbai
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