In
a bid to deal with issue of splitting of wages by employers,
retirement fund body EPFO has asked its over 120 field formations to
inspect firms which are deducting PF on 50 per cent or less of total
wages. The employers often split wages into different allowances to
reduce their PF liability and also increase the take home pay of
their workers. The provident fund is deducted as percentage of basic
wages. At present 12 per cent of basic wages is deducted as
employees' contribution towards social security schemes run by the
Employees' Provident Fund Organisation (EPFO) and an equal amount is
contributed by employers. "All officers in-charge of field
offices are directed to get such establishments inspected where PF
contributions has been deducted on 50 per cent or less of total
wages," an office order said. According to the order, the
exercise of inspecting the firms deducting PF on 50 per cent or less
of total wages, must be completed by August 31. The EPFO headquarters
have asked the field formations to submit a report in this regard by
September 7. EPFO pointed out, "instance have come to notice
where total wages of employees' are splitted by employers to the
extent that PF liability is reduced up to 50 per cent of total
wages." It observed in the order that "many employers split
total wages payable to their employees into several allowances in
such a way that the said allowances are covered under the category of
exclusions provided under Section 2 (b) (EPF & MP Act
1952)....encouraging subterfuge of splitting of wages to exclude the
PF liability." As per Section 2 (b) of Employees' Provident Fund
& Miscellaneous Provisions Act 1952, the basic wages for the
purpose of PF deduction includes all emoluments which are earned by
an employees while on duty. However, the clause provides that basic
wages excludes the cash value of food concession, dearness allowance,
house rent allowance, overtime allowance, bonus, commission or any
other similar allowance payable and any presents given by employer to
employees. Earlier in November 2012, EPFO has issued a notification
for clubbing of wages but that was put in abeyance later on. However,
a review committee, constituted to look into the nitty-gritty of
clubbing of allowances with basic pay for PF deductions, had
supported the idea for enhancing the social security benefit under
the schemes run by the EPFO. The notification issued on November 30,
2012, had said: "All such allowances which are ordinarily,
necessarily and uniformly paid to the employees are to be treated as
the basic wages".
Subscribe to:
Post Comments (Atom)
ఉపాధి, వేతన వృద్ధి రెండింటిలోనూ బెంగళూరే టాప్
నూతన ఉపాధి అవకాశాల కల్పన, వేతన వృద్ధి రెండింటిలోనూ దేశంలోని నగరాలన్నింటిలోనూ బెంగళూరు అగ్రస్థానంలో నిలిచింది. చెన్నై, ఢిల్లీ తర్...
-
మార్కెట్ విలువలో బిఎస్ఇ కొత్త రికార్డు బొంబాయి స్టాక్ ఎక్స్ఛేంజిలో (బిఎస్ఇ) లిస్టింగ్ అయిన కంపెనీల ఉమ్మడి మార్కెట్ విలువ మంగళవారం (202...
-
దేశంలో సుజుకి మోటార్ కార్పొరేషన్ (ఎస్ఎంసి) మూడు కోట్ల కార్ల ఉత్పత్తి మైలురాయిని దాటింది. అయితే తన మాతృదేశంలో ఈ మైలురాయిని సాధించిన సమయం...
-
ఈ ఏడాది దేశంలో సీనియర్ ఎగ్జిక్యూటివ్ స్థాయిలో వేతనాల వృద్ధి 20 శాతం వరకు ఉంటుందని అంచనా. ప్రతిభను వెన్నుతట్టి ప్రోత్సహించడం, ఇన్న...
No comments:
Post a Comment