Please help to let me understand if we need to pay PF Contribution on VDA or HRA. I am a contractor working with Voltas Hyderabad, Telangana State. The compliance officer asked me to pay PF on the basic earnings + VDA. While I don't have VDA in my Payroll. I have HRA in my Payroll. Please guide what is the correct rules of paying PF.
From India, Mumbai
From India, Mumbai
Dear Wasique,
PF contribution has to be made on Basic+VDA as suggested by Compliance officer.
VDA or DA should be included in payroll or else ensure you pay minimum wage in your organization if the components are not considered, the amount of minimum wage has to be ensured.
Always it is advisable to pay as per Minimum Wage Act with the structure designed as mentioned in the Statutory enactments.
Go through the PF act for the exact definition of wages, it states the wage includes Basic+DA.
From India, Hyderabad
199PF contribution has to be made on Basic+VDA as suggested by Compliance officer.
VDA or DA should be included in payroll or else ensure you pay minimum wage in your organization if the components are not considered, the amount of minimum wage has to be ensured.
Always it is advisable to pay as per Minimum Wage Act with the structure designed as mentioned in the Statutory enactments.
Go through the PF act for the exact definition of wages, it states the wage includes Basic+DA.
From India, Hyderabad
Thank you Venkata Sir. Would you provide PF enactment website link where we can find information as suggested by you.
One more thing I have to understand if a labor has 8000/-Rs. Salary per month what should be the VDA should be fixed? Please make me understand by an simple example. Thanks once again.
From India, Mumbai
One more thing I have to understand if a labor has 8000/-Rs. Salary per month what should be the VDA should be fixed? Please make me understand by an simple example. Thanks once again.
From India, Mumbai
Dear Wasique, Please check the Telanagana Minimum wages and the unskilled labour get a basic of Rs.5579/- and rest is VDA. Minimum wage is not Rs.8,000/- but even more than it.
From India, Hyderabad
From India, Hyderabad
Really appreciate your quick and valuable information.
Sir, would provide step by step procedure how to pay arrears to EPF portal. I need to pay now PF Contribution on VDA because I paid contribution only on basic earnings. Kindly guide me.
Thanking you for your cooperation.
Wasique
Hyderabad
From India, Mumbai
Sir, would provide step by step procedure how to pay arrears to EPF portal. I need to pay now PF Contribution on VDA because I paid contribution only on basic earnings. Kindly guide me.
Thanking you for your cooperation.
Wasique
Hyderabad
From India, Mumbai
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E compliance.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls