We pay the overtime salary in cash and maintain records separately. The question is, one of our employees wants to take a loan from the bank and his monthly earning in the bank is 23,400 rs + overtime is nearly about 10,000 rs and demanded to show his OT in the bank for loan purposes.
What if I mention his OT in the bank? PF is applicable on OT?
Note:- Bank will not accept the Overtime salary letter for Loan purposes.
From India, Ahmedabad
What if I mention his OT in the bank? PF is applicable on OT?
Note:- Bank will not accept the Overtime salary letter for Loan purposes.
From India, Ahmedabad
Hi,
PF not applicable for OT payment.
OT is a variable pay ( which means differ from month to month)and hence Bank will not consider for the purpose of loan eligibility.
You may issue a certify letter to the employee mentioning his DOJ, fixed salary details and also add a word that the employee is eligible for OT payment which is a variable component.
From India, Madras
586PF not applicable for OT payment.
OT is a variable pay ( which means differ from month to month)and hence Bank will not consider for the purpose of loan eligibility.
You may issue a certify letter to the employee mentioning his DOJ, fixed salary details and also add a word that the employee is eligible for OT payment which is a variable component.
From India, Madras
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PF not applicable on CTC 18.3.2014.pdf