An employer remits arrears and regular contributions of PF in a month. The arrears were paid for the previous 20 months. When an employee retires from employment, the pensionable salary is taken as an average of 60 months PF salary.
My question is if this arrear of PF wages is taken for the average pensionable salary? EPF regional office says they cannot account for it as the employer remitted the arrears in a single challan. They say if the employer submits the arrears through 20 separate challans, then only the PF arrear wages can be taken for the pensionable salary.
Madhu Sir, please give me clarification on this. It is very urgent as some retired employees are waiting for their pension.
From India, Bengaluru
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My question is if this arrear of PF wages is taken for the average pensionable salary? EPF regional office says they cannot account for it as the employer remitted the arrears in a single challan. They say if the employer submits the arrears through 20 separate challans, then only the PF arrear wages can be taken for the pensionable salary.
Madhu Sir, please give me clarification on this. It is very urgent as some retired employees are waiting for their pension.
From India, Bengaluru
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In the scenario described, the issue revolves around whether the arrears of PF wages can be considered for calculating the average pensionable salary for EPF pension computation. Here's a practical response to address this concern:
1. EPF Regulations: According to EPF regulations, the pensionable salary is typically calculated based on the average of the last 60 months' PF salary. However, the treatment of arrears in this calculation can vary based on how they were remitted to the EPF office.
2. EPF Office Guidelines: The EPF regional office's stance that the arrears cannot be accounted for because they were remitted in a single challan is a common practice. This means that unless the arrears are submitted through separate challans for each month, they may not be considered for pensionable salary calculation.
3. Employer Action: To ensure that the arrears are factored into the pensionable salary calculation, the employer may need to follow the EPF office's requirement of submitting separate challans for each month's arrears payment. This process aligns with EPF guidelines and facilitates accurate pension computation.
4. Urgency: Given the urgency due to retired employees awaiting their pensions, it is crucial for the employer to promptly address this issue by engaging with the EPF office to rectify the arrears submission process. Timely compliance with EPF regulations will help expedite the pension disbursement process for retired employees.
5. Communication with EPF Office: Employers should communicate with the EPF regional office in Bengaluru, India, to seek clarification on the specific steps required to ensure that the arrears are appropriately considered for pension calculation. Clear communication and adherence to EPF guidelines are key to resolving this matter efficiently.
By following the EPF office's guidelines and taking necessary steps to rectify the arrears submission process, employers can ensure that retired employees receive their pensions accurately and without delays.
From India, Gurugram
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351. EPF Regulations: According to EPF regulations, the pensionable salary is typically calculated based on the average of the last 60 months' PF salary. However, the treatment of arrears in this calculation can vary based on how they were remitted to the EPF office.
2. EPF Office Guidelines: The EPF regional office's stance that the arrears cannot be accounted for because they were remitted in a single challan is a common practice. This means that unless the arrears are submitted through separate challans for each month, they may not be considered for pensionable salary calculation.
3. Employer Action: To ensure that the arrears are factored into the pensionable salary calculation, the employer may need to follow the EPF office's requirement of submitting separate challans for each month's arrears payment. This process aligns with EPF guidelines and facilitates accurate pension computation.
4. Urgency: Given the urgency due to retired employees awaiting their pensions, it is crucial for the employer to promptly address this issue by engaging with the EPF office to rectify the arrears submission process. Timely compliance with EPF regulations will help expedite the pension disbursement process for retired employees.
5. Communication with EPF Office: Employers should communicate with the EPF regional office in Bengaluru, India, to seek clarification on the specific steps required to ensure that the arrears are appropriately considered for pension calculation. Clear communication and adherence to EPF guidelines are key to resolving this matter efficiently.
By following the EPF office's guidelines and taking necessary steps to rectify the arrears submission process, employers can ensure that retired employees receive their pensions accurately and without delays.
From India, Gurugram
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