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Employer's & employees provident fund

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 August 2011 My client is an Educational Institute (school without govt.grant). To Increase the performance of the employees (teachers), they have elected team leaders , subject head (leaders)etc. who will be paid bonus-incentive.(may be Rs.5000 pm). Every year, there will be a new leader.However if Mr.A is elected as Team leader, he will be paid Rs.60,000/- this year (Rs.5,000/-pm)who may not be team leader next year and will get the agreed pay without the bonus.
Can I treat it as incentive and not deduct PF on the same? or will there be an objection? Please guide
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Preety Parik

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Preety Parik (Expert)
05 August 2011 The additional Pay is in nature of incentive. Instead of per month payment it could be quarterly or six month like.
es, I too, agree that there is no PF deduction on Bonus and Performance Incentives.
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CA. Anoop Gadia

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CA. Anoop Gadia (Expert)
06 August 2011 PF deduct on the basis of basic salary not on incentives.
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