Please clarify Whether we have taken overtime wages for calculating esi pf or not Thanks& regard hekarthi
From India, Coimbatore
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46From India, Coimbatore
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OT Wages are considered as wages for contribution for ESI,but not considered for excluding from ESI coverage.OT has no relevance for EPF. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Karthi,
It's very simple.
For ESIC - ESIC is calculated on the Gross (So gross includes OT). OT amount is included for calculating ESIC and salary (Gross) above Rs. 15,000/- ESIC not applicable.
For PF - PF is calculated on only Basic + DA. OT amount is not included for calculating PF.
Regards,
B. Anand Kumar
From United Kingdom, London
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It's very simple.
For ESIC - ESIC is calculated on the Gross (So gross includes OT). OT amount is included for calculating ESIC and salary (Gross) above Rs. 15,000/- ESIC not applicable.
For PF - PF is calculated on only Basic + DA. OT amount is not included for calculating PF.
Regards,
B. Anand Kumar
From United Kingdom, London
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Mr. Anand’s conclusion is good. but the PF deduction is also depends on Basic + DA and if it is a bellow ceiling limit then the pf is also attract the contribution.
From India, Bangalore
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From India, Bangalore
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Dear Karthik,
Mr. Varghese Mathew, please permit me to elaborate on your statement:
Wages = Rs. 14,000/- + OT = Rs. 2,000/-
For checking whether the employee is within the ESI purview, consider only wages, which are Rs. 14,000/-. (As this is below the ESI ceiling, he will be under the purview of ESI coverage.)
But while calculating contributions in respect of the employee, you have to remit ESI contributions for Rs. 16,000/- (Wages + OT).
For PF, he has already responded.
M.V. Kannan
From India, Madras
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Mr. Varghese Mathew, please permit me to elaborate on your statement:
Wages = Rs. 14,000/- + OT = Rs. 2,000/-
For checking whether the employee is within the ESI purview, consider only wages, which are Rs. 14,000/-. (As this is below the ESI ceiling, he will be under the purview of ESI coverage.)
But while calculating contributions in respect of the employee, you have to remit ESI contributions for Rs. 16,000/- (Wages + OT).
For PF, he has already responded.
M.V. Kannan
From India, Madras
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Yes if his wages is Rs 14K then he shall be coverable under the Act. and contribution shall calculated on wages plus overtime, but i think subject Rs 15K, not on 16K.
From India, Delhi
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From India, Delhi
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Hi Karthik,
For the calculation of ESIC, Gross Salary means Basic, DA, Conveyance, HRA, Special Allowance, and all fixed components. Apart from the fixed components, if any variable pay is provided like Overtime, Incentive, even this has to be calculated for ESIC. Similarly, if any Leave encashment and One-time Bonus are paid to resigned employees and if ESIC applicability is there, this should not be taken into consideration.
When it comes to PF, Total Wages represent only Basic + DA. Nowhere should PF impact Overtime wages.
Thanks,
Srinivasan
Resolve Business Services
From India, Bangalore
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For the calculation of ESIC, Gross Salary means Basic, DA, Conveyance, HRA, Special Allowance, and all fixed components. Apart from the fixed components, if any variable pay is provided like Overtime, Incentive, even this has to be calculated for ESIC. Similarly, if any Leave encashment and One-time Bonus are paid to resigned employees and if ESIC applicability is there, this should not be taken into consideration.
When it comes to PF, Total Wages represent only Basic + DA. Nowhere should PF impact Overtime wages.
Thanks,
Srinivasan
Resolve Business Services
From India, Bangalore
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