Will Pf Be Applicable On Back Wages? - PDF Download

Hello All,
We had made a revision for some employees on April 2012. All the employees were paid the revised salary except one of the employees who got missed out. After 10 months we realize this mistake, so we are paying the arrears for the 10 months to him this month, and the revised salary too.
I need to know if we also need to pay PF/ESI for him for the revised salary for the 10 months?
Thanks, all inputs will be appreciated a lot.

For PF You have to pay arrears
For ESI No Need to pay arrears
Pls refer the attachment

In your case, there is no revision of wages from retrospective effect in case of the employee who is missed out but you have inadvertently omitted his case who otherwise should have been paid revised salary with effect from April 2012. Thus it i s a case of lapse on your part and hence in my view, it cannot qualify for exemption. You may have to pay the ESI contribution for the period of ten months also.
B.Saikumar
Mumbai

Hi sai,
I think it is retrospective effective. Because they are revising the salary w.e.f 01 april.

Hi Prasad

what I understand from the post is that the company revised the salary in April 2012 and all but one, were paid the revised salary in and from April 2012.Therefore, the company did not raise the issue of arrears in other cases but only in one case who was inadvertently omitted.He too should have got revised salary from April 2012 but for the lapse on the part of the company..If the revised salaries are paid on subsequent date or now to all employees, then the revision can be termed as retrospective. Therefore the payment of arrears to the employee, that was missed out on account of the lapse of the company, in my view cannot be strictly called revision with retrospective effect. If so there will be discrepancy in the quantum of contribution paid. In case of all others, the company might have paid contribution on the revised salary and in one case they will not pay on revised salary for 10 months.However the queriest should clarify to clear the confusion.

B.saikumar

HR & Labour Law advisor

Mumbai

we have to pay the PF to the employee.
if the basic has increased than the increased PF need to be given to the employee for the 10 onths

Hi
is it necessary that PF will be deducted from the Basic Sal. Can this be skipped??

Yes, you need to pay ESI on arrears as you revised the salary not government.
ESI is exempted on arrears, if govt. revised the wages from back date.

Hello ALL,
If i will give increments to my all employees to from April 2012 due to reason FORGOT than why should i exempted from PF & ESI?, definately i will add those amounts on arrears than why should i gets the benefit?
We have to pay the PF & ESI on arrears.
Please do the needful if i am wrong
Thanking you,
Regards,
Ashish

Yes, EPF should be compulsorily deducted and added manually in the EPF returns software but FPF is not compulsury because it is beyond Rs.6,500/- the benefit of factor will be lost