Pf/esi calculation doubt???
This query is : Resolved
27 October 2012
hello,
I have doubt that whether payment made to laborers for the overtime payment allowance are taken for the calculation of PF/ESI or not??
and if Chokidar is recruited as permenanant employee of the firm/concern then , whether the salary pay to him is convered under PF/ESI laws or not??
I have doubt that whether payment made to laborers for the overtime payment allowance are taken for the calculation of PF/ESI or not??
and if Chokidar is recruited as permenanant employee of the firm/concern then , whether the salary pay to him is convered under PF/ESI laws or not??
28 October 2012
Hi
Overtime Allowance is considered for ESIC only and no PF is payable since PF is Calculated on Basic, DA & CCA.
When He is taken as permanent then PF/ESI will be applicable as it will be applicable to other permanent employee.
Rgds//Vaibhav
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Overtime Allowance is considered for ESIC only and no PF is payable since PF is Calculated on Basic, DA & CCA.
When He is taken as permanent then PF/ESI will be applicable as it will be applicable to other permanent employee.
Rgds//Vaibhav
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27 February 2014
Overtime is not a regular and continuous
payment, but it is of an occasional nature. If
overtime is also taken for wage limit for
coverage of an employee, he may be going out
of coverage for some time and again coming
within the orbit of the scheme, when overtime is
not there. This frequent interruption from the
scheme deprives him of the benefits admissible
under the scheme even after making payment of
contribution for part of a contribution period. To
ensure continued security and protection,
overtime is excluded for determining the wage
ceiling for coverage of an employee. However,
it is included for payment of contribution to
cover the risk during the period he was on
overtime work, and to enable him to draw the
cash benefits at an enhanced rate, as by adding
overtime wages to his average daily wages, he is
fitted in to the next higher slab in the Standard
Benefit table in Rule 54 for claiming cash
benefits.
payment, but it is of an occasional nature. If
overtime is also taken for wage limit for
coverage of an employee, he may be going out
of coverage for some time and again coming
within the orbit of the scheme, when overtime is
not there. This frequent interruption from the
scheme deprives him of the benefits admissible
under the scheme even after making payment of
contribution for part of a contribution period. To
ensure continued security and protection,
overtime is excluded for determining the wage
ceiling for coverage of an employee. However,
it is included for payment of contribution to
cover the risk during the period he was on
overtime work, and to enable him to draw the
cash benefits at an enhanced rate, as by adding
overtime wages to his average daily wages, he is
fitted in to the next higher slab in the Standard
Benefit table in Rule 54 for claiming cash
benefits.
27 February 2014
The following items are taken in to account for
computation of wages for payment of ESIC
contribution.
a) Basic Pay, Wages, Salary;
b) D.A./HRA/CCA/Overtime/officiating
allowance /Night shift allowance/efficiency allowance/Heat, Gas, Dust allowance/Education
allowance/Food & Tea allowance/conveyance
allowance;
c) Wages/salary/pay for weekly off and public
holidays;
d) Commission paid to sales staff;
e) Subsistence allowance paid to an employee
during the period of suspension;
f) Attendance Bonus or incentive or exgratia in
lieu of Attendance Bonus or production
incentive;
g) Regular Honorarium or salary or
remuneration paid to a Director;
h) Collection Batta paid to running staff. i)
i)Actual payments made towards leave Salary ,
lay off compensation, or wages for strike period.
computation of wages for payment of ESIC
contribution.
a) Basic Pay, Wages, Salary;
b) D.A./HRA/CCA/Overtime/officiating
allowance /Night shift allowance/efficiency allowance/Heat, Gas, Dust allowance/Education
allowance/Food & Tea allowance/conveyance
allowance;
c) Wages/salary/pay for weekly off and public
holidays;
d) Commission paid to sales staff;
e) Subsistence allowance paid to an employee
during the period of suspension;
f) Attendance Bonus or incentive or exgratia in
lieu of Attendance Bonus or production
incentive;
g) Regular Honorarium or salary or
remuneration paid to a Director;
h) Collection Batta paid to running staff. i)
i)Actual payments made towards leave Salary ,
lay off compensation, or wages for strike period.
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