Pf applicabilty
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 January 2015
CO. HAVING 100 EMPLOYEES OUT OF WHICH 90 EMPLOYEE'S BASIC SALARY IS LESS THAN 15000 AND 10 EMPLOYEE'S BASIC SALARY IS MORE THAN 15000.
WHAT IS THE PF IMPLICATION ON COMPANY.
1. CO. WILL DEDUCT PF ONLY FOR 90 EMPLOYEES HAVING BASIC SALARY LESS THAN 15000.
2. CO. WILL DEDUCT PF FOR ALL EMPLOYEES.
WHAT IS THE PF IMPLICATION ON COMPANY.
1. CO. WILL DEDUCT PF ONLY FOR 90 EMPLOYEES HAVING BASIC SALARY LESS THAN 15000.
2. CO. WILL DEDUCT PF FOR ALL EMPLOYEES.
Guest
Guest
(Expert)
02 January 2015
Yes company is liable to deduct & contribute to PF in your case..you are only liable for the employees having less then 15000 basic wage.However you can voluntarily contribute to the employees having more then 15000 basic wage.And the very important thing you need to consider is here basis wage doesn't mean basic salary so dont get confused with basic salary.
The definition of ‘Basic Wages’ has been defined under Section
2(b) of the EPF & MP Act, 1952 as below:
Section 2(b) “basic wages” means all emoluments which are earned by an employee
while on duty or on leave or on holidays with wages in either case in accordance
with the terms of the contract of employment and which are paid or payable in cash
to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name
called paid to an employee on account of a rise in the cost of living), houserent
allowance, overtime allowance, bonus, commission or any other
similar allowance payable to the employee in respect of his employment or
of work done in such employment;
iii. any presents made by the employer;
From the above definition it is clear that all the emoluments which
are earned by an employee other than those specifically excluded components
given under clause i, ii & iii, would be the basic wages for the purposes of
contribution under the Act. All the components viz basic wages, dearness
allowance and retaining allowance specified in Sec 6 have been explained at
Sec 2(b) and Sec 6 categorically without leaving any room for ambiguity.
The definition of ‘Basic Wages’ has been defined under Section
2(b) of the EPF & MP Act, 1952 as below:
Section 2(b) “basic wages” means all emoluments which are earned by an employee
while on duty or on leave or on holidays with wages in either case in accordance
with the terms of the contract of employment and which are paid or payable in cash
to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name
called paid to an employee on account of a rise in the cost of living), houserent
allowance, overtime allowance, bonus, commission or any other
similar allowance payable to the employee in respect of his employment or
of work done in such employment;
iii. any presents made by the employer;
From the above definition it is clear that all the emoluments which
are earned by an employee other than those specifically excluded components
given under clause i, ii & iii, would be the basic wages for the purposes of
contribution under the Act. All the components viz basic wages, dearness
allowance and retaining allowance specified in Sec 6 have been explained at
Sec 2(b) and Sec 6 categorically without leaving any room for ambiguity.
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