Weather the employee in maternity Leave, establishment has to pay the EPF (Employee and Employer ) Contribution?
From India, Hyderabad
From India, Hyderabad
Dear Colleague,
PF contribution is payable on Basic Wages, DA, and Retaining Allowance. When we see the definition of " basic wages" it means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages .........paid or payable etc....
Hence if the employee is not covered under ESI (in which case the benefits are settled by ESI) and employer is making leave salary during maternity, then PF contribution is applicable. You may further check with the PF Enforcement Officer concerned for more clarity.
2(2) “basic wages” means all emoluments which are earned by an employee while on duty or 4[on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include—
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;
Take Care,
Dr P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
305PF contribution is payable on Basic Wages, DA, and Retaining Allowance. When we see the definition of " basic wages" it means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages .........paid or payable etc....
Hence if the employee is not covered under ESI (in which case the benefits are settled by ESI) and employer is making leave salary during maternity, then PF contribution is applicable. You may further check with the PF Enforcement Officer concerned for more clarity.
2(2) “basic wages” means all emoluments which are earned by an employee while on duty or 4[on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include—
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;
Take Care,
Dr P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
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EPF - Pension contribution is zero WHY.jpg
EPF Form ASR For Represent Payment.pdf