I would like to ask all one Question on 26 vs 28/30/31.
We have an employee having Basic+DA as Rs. 15,500/- in his Salary. So he is Exempted from PF Act.
This Salary we are paying him for 30 Days.
So we can say that he is paid Rs. 517/day. (Rs. 15,500/30)
Now if an PF Inspector asks me that as per Minimum Wage Act, his salary should be calculated on 26 days, so according to my Payroll, he is paid Rs. 13,442/- for 26 days (Rs. 517 X 26 Days). And thus his PF should be deducted because he is falling under Rs. 15,000/- for 26 days.
What should I be doing on this?
I would conclude that any salary should be calculated on 26 basis only.
I have gone through many judgments also on this subject but nothing is clearly conclusive.
In Labour Offices, PF-ESI Department, all suggest to calculate on 26 days concept only.
It is wrong practice in most of the companies, which we being New Generation HR, should rectify.
THIS IS MY PERSONAL OPINION
Some one said in this post above giving example of Tamil Nadu S&E that his salary should not be deducted for weekly off days. What I concluded that Govt meant by saying this that he should not be considered ABSENT on such day. And if you divide by 26 and don't put his ABSENT then automatically it becomes his present and wages won't be deducted.
We have an employee having Basic+DA as Rs. 15,500/- in his Salary. So he is Exempted from PF Act.
This Salary we are paying him for 30 Days.
So we can say that he is paid Rs. 517/day. (Rs. 15,500/30)
Now if an PF Inspector asks me that as per Minimum Wage Act, his salary should be calculated on 26 days, so according to my Payroll, he is paid Rs. 13,442/- for 26 days (Rs. 517 X 26 Days). And thus his PF should be deducted because he is falling under Rs. 15,000/- for 26 days.
What should I be doing on this?
I would conclude that any salary should be calculated on 26 basis only.
I have gone through many judgments also on this subject but nothing is clearly conclusive.
In Labour Offices, PF-ESI Department, all suggest to calculate on 26 days concept only.
It is wrong practice in most of the companies, which we being New Generation HR, should rectify.
THIS IS MY PERSONAL OPINION
Some one said in this post above giving example of Tamil Nadu S&E that his salary should not be deducted for weekly off days. What I concluded that Govt meant by saying this that he should not be considered ABSENT on such day. And if you divide by 26 and don't put his ABSENT then automatically it becomes his present and wages won't be deducted.