(Querist) 19 June 2009
This query is : Resolved
Employees & Employers Contribution in PF is 12% Of salary. Definition of salary in ACt is Basic Salary & Dearness Allowance. Do Overtime is covered under the definition of salary for the purpose of PF Contribution.
By virtue of the newly amended provisions of Provident Funds (Third Amendment) Scheme, 2008 and Employees’ Pension (Third Amendment) Scheme, 2008, I represent and state as under:-
For the purposes of PF contribution, the following component of salary would need to be considered:
1. Basic wages (all emoluments paid or payable in cash while on duty or on leave or holiday except Dearness Allowance, House Rent Allowance, overtime allowance , bonus, commission or any other similar allowance payable in respect of employment and any presents made by the employer);
1. Dearness Allowance (all cash payments by whatever name called paid to an employee on account of a rise in the cost of living);
2. Retaining allowance; and
3. Cash value of any food concession
Further, there is no cap on the salary up to which the contribution is to be made by the employer as well as the employee.