Dear All,
As per EPFO, how much overtime is authorized per day/monthly? Are there any parameters to consider while verifying the salary sheet? Secondly, if the employer pays double for the overtime hours, it is exempted from EPF contribution. For a Building Construction Company, is there anything special regarding overtime components?
MK Verma
From India, Ahmadabad
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9As per EPFO, how much overtime is authorized per day/monthly? Are there any parameters to consider while verifying the salary sheet? Secondly, if the employer pays double for the overtime hours, it is exempted from EPF contribution. For a Building Construction Company, is there anything special regarding overtime components?
MK Verma
From India, Ahmadabad
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As far as my knowledge is concerned; it should not exceed 50 OT hours in a month
From India, Visakhapatnam
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From India, Visakhapatnam
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Dear Verma ji, EPFO has no concern with overtime. PF is not deducted on overtime. Exemption i.e. exclusion from PF is on rate of Basic plus DA component for eight hours working.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Verma
For purpose of EPF contribution the “Pay” includes basic wages with [dearness allowance, retaining
allowance (if any)], and cash value of food concessions admissible thereon.
As mentioned by Korgaonkarji there is no question of having any concern for OT for this purpose.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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For purpose of EPF contribution the “Pay” includes basic wages with [dearness allowance, retaining
allowance (if any)], and cash value of food concessions admissible thereon.
As mentioned by Korgaonkarji there is no question of having any concern for OT for this purpose.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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Dear Mr. Verma,
Firstly, overtime is not related to EPF; there is no deduction/contribution for overtime payment.
Secondly, overtime is governed by the Factory Act, 1948, not the EPF Act, 1952. It should not exceed 50 hours in a three-month period.
This is for your information.
Regards,
Kapil Rathore
MBA - HR, Labour/Factory Law
Mobile: 09039381496
From India, Bhopal
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Firstly, overtime is not related to EPF; there is no deduction/contribution for overtime payment.
Secondly, overtime is governed by the Factory Act, 1948, not the EPF Act, 1952. It should not exceed 50 hours in a three-month period.
This is for your information.
Regards,
Kapil Rathore
MBA - HR, Labour/Factory Law
Mobile: 09039381496
From India, Bhopal
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Korgaonkar K A is right that EPF is only concern with basic+da+food conc.(if any) rather that any of the allowances. thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
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From India, Ghaziabad
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Dear Sh. Vermaji,
There are no stipulations regarding overtime work in the EPF Act. PF contributions are not payable on overtime earnings. Overtime regulations can be found in the Minimum Wages Act, Factories Act, Shop & Establishment Act, etc., but the EPF Act does not specifically address overtime.
Regarding your query about the provisions of overtime components for a Building Construction Company, there are no limitations on overtime work under the BOCW Act. However, the Act stipulates that when a building worker exceeds nine hours in a day or works more than forty-eight hours in a week, they are entitled to wages at double the ordinary rate for the additional hours worked.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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There are no stipulations regarding overtime work in the EPF Act. PF contributions are not payable on overtime earnings. Overtime regulations can be found in the Minimum Wages Act, Factories Act, Shop & Establishment Act, etc., but the EPF Act does not specifically address overtime.
Regarding your query about the provisions of overtime components for a Building Construction Company, there are no limitations on overtime work under the BOCW Act. However, the Act stipulates that when a building worker exceeds nine hours in a day or works more than forty-eight hours in a week, they are entitled to wages at double the ordinary rate for the additional hours worked.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Dear Verma As per Factories Act, OT maximum limit is 50 hours per quarter and it doesn\'t attract PF contribution from the employer. Thanks & Regards, A Ravichandran
From India, Chennai
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From India, Chennai
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But if Overtime is not being paid double rate in that case epf contribution is required? those are epf member. Secondly daily 5 to 6 hours overtime is authorized. MK Verma
From India, Ahmadabad
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From India, Ahmadabad
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Dear Mr. Verma, Mr. A. Ravichandran is very much right. As per Factories Act only 50 hours over time is allowed in a quarter. rgds, Madan, Delhi
From India, Delhi
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From India, Delhi
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as per my knowledge now there is a little amendment in EPF Act. i.e epf limit for deduction is 6500/- in which all the allowances has also been calculated.
From India, Patiala
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From India, Patiala
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Dear Sh Vermaji,
You are getting confused with the PF contributuion on the deductible part of the wages/salary of an employee.Sh Shailesh Parikh has rightly mentioned that for purpose of EPF contribution the “Pay” includes basic wages with [dearness allowance, retaining allowance (if any)], and cash value of food concessions admissible thereon.I have understood your query which contains two parts as how to treat his salary on a particular day when somebody is put on overtime.The PF contribution will be payable on one's ordinary rate of wages on that particular day but not on his overtime wages earned by him.We can't agitate on the stipulations of overtime given in various enactments unless the same are amended through policy frame work of Govt of India.
BS Kalsi
Member since Aug 2011
attribution https://www.citehr.com/458149-maximu...#ixzz2RMHpPqrv
From India, Mumbai
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You are getting confused with the PF contributuion on the deductible part of the wages/salary of an employee.Sh Shailesh Parikh has rightly mentioned that for purpose of EPF contribution the “Pay” includes basic wages with [dearness allowance, retaining allowance (if any)], and cash value of food concessions admissible thereon.I have understood your query which contains two parts as how to treat his salary on a particular day when somebody is put on overtime.The PF contribution will be payable on one's ordinary rate of wages on that particular day but not on his overtime wages earned by him.We can't agitate on the stipulations of overtime given in various enactments unless the same are amended through policy frame work of Govt of India.
BS Kalsi
Member since Aug 2011
attribution https://www.citehr.com/458149-maximu...#ixzz2RMHpPqrv
From India, Mumbai
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Dear All Members,
I am enclosing herewith a newspaper clipping from Mint dated April 19, 2013 for the information of the members. The Labour & Employment Ministry, Government of India, has constituted a Committee that has submitted its report favoring the clubbing of all components except HRA, overtime, bonuses, and commission to be considered as part of the salary under the PF Act. This move will result in employers contributing more to EPF accounts of the employees. The Ministry is also contemplating to facilitate online transfer and withdrawal of PF accounts of the employees in the near future.
BS Kalsi
Member since August 2011
From India, Mumbai
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I am enclosing herewith a newspaper clipping from Mint dated April 19, 2013 for the information of the members. The Labour & Employment Ministry, Government of India, has constituted a Committee that has submitted its report favoring the clubbing of all components except HRA, overtime, bonuses, and commission to be considered as part of the salary under the PF Act. This move will result in employers contributing more to EPF accounts of the employees. The Ministry is also contemplating to facilitate online transfer and withdrawal of PF accounts of the employees in the near future.
BS Kalsi
Member since August 2011
From India, Mumbai
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Mr. Verma,
PF is calculated on BASIC + DA + CASH VALUE FOR FOOD. According to the Factory Act 1948, the total working hours in a week, including overtime hours, should not exceed sixty, and the total overtime hours in a quarter should not exceed 50.
From India
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PF is calculated on BASIC + DA + CASH VALUE FOR FOOD. According to the Factory Act 1948, the total working hours in a week, including overtime hours, should not exceed sixty, and the total overtime hours in a quarter should not exceed 50.
From India
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Dear Ramit,
Unlike the Factories Act, the BOCW Act does not provide any limit on overtime work laid down therein. However, Section 29 of the Act has prescribed the wages for overtime work. It stipulates that where any building worker is required to work on any day in excess of the number of hours constituting a normal working day, he shall be entitled to wages at the rate of twice his ordinary rate of wages. The Delhi Rules provide that no building worker employed in building or other construction work shall be required to work for more than nine hours a day or forty-eight hours a week.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Unlike the Factories Act, the BOCW Act does not provide any limit on overtime work laid down therein. However, Section 29 of the Act has prescribed the wages for overtime work. It stipulates that where any building worker is required to work on any day in excess of the number of hours constituting a normal working day, he shall be entitled to wages at the rate of twice his ordinary rate of wages. The Delhi Rules provide that no building worker employed in building or other construction work shall be required to work for more than nine hours a day or forty-eight hours a week.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf