Employer's & employees provident fund
This query is : Resolved
Querist : Anonymous
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
Can I treat it as incentive and not deduct PF on the same? or will there be an objection? Please guide
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.
es, I too, agree that there is no PF deduction on Bonus and Performance Incentives.
CA. Anoop Gadia
(Expert)
06 August 2011
PF deduct on the basis of basic salary not on incentives.
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