Pf and esi question

Sorry i didnt knew where to post this question, so i m posting it under the VAT section of the forum.

Question

1. Employee and employer share of PF and ESI is calculated on salary payable to the employee on the bais of his attendance during the month? Am i right?

2. If an employee is absent for whole of the month, then does the employer still contributes towards the PF and ESI?

3. If an employee is absent for whole of the month, then employee share of PF and ESI shall be zero? Am i right?

4. If the Basic salary of employee is 10000 and DA forming part of retirement benefits is Rs. 3000. Employee has opted for PF. Now the employer can limit his contribution to Rs. 6500 i.e. 12% of 6500 = Rs. 780? Am i right?

Employee contribution can be 12% of Rs. 13000 i.e. 1560. Am i right?

Now can an employee raise his contribution to PF in percentage terms? I mean can he say to employer that kindly deduct my PF at 20% of my basic + DA?

 

Please guide

Shivani

shivaniadream @ gmail.com

 

 

 

Replies (3)

1. PF is calculated on Basic Salary and Esi is calculated on Gross Salary.

2.Yes attendance is considered while making contributions towards PF and ESi

3. If the Employee is absent for the whole of the month then the Contribution would be zero

4. PF is calculated on Basic Salary + DA so the amoont to be contributed towards PF should be on 13000 and not 6500/-

5. Employer can go for a higher deduction

An employer may discharge their liability to contribute @ 12% of Rs.6500.00 (Basic +D.A.) An employee may request to deduct more than @ 12% from his BASIC+D.A. pay & deposit the same to his EPF account, but employer may not bound/liable to enhance his contribution.

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