one of our freind is working in government corporation he has received arrears of Rs.20000/- per month for april18 may18 and june 18 totally Rs.60,000/- should he pay the provident fund on the arrears and when he has to pay. please inform me so that i can convey it to him more
Yes , you have to pay on arrears also received provided the amount is basic pay and not any allowances. Generally, as u said it is govt dept., they compulsory deduct on arrears of pf. Let him check that. If not deducted u can ask employer to deduct on this so that u will get equal contribution from employer also. more
calculating the arrears of any period of service all the deductions already deducted from the arrears part by the employer then arrears amount given to employees more
If contribution for those months upto maximum threshold limit of salary had already been deducted / deposited with employer's contribution, it may not be required; more
PF is to be deducted by employer while disbursing amount as arrears. However, it is to be seen what is the nomenclature being used for such payment. If it is delayed increment, PF will become applicable as per provisions and employer is responsible for deduction. more
Being government corporation most likely employers contribution shall be limited to 8.33% or any higher limit as applicable and that too may be limited to Rs.6500 or any other maximum fixed amount. VPF may be exercised to minimise tax liability provided tax exemption is applicable and acceptable to employer. more
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By Satvik Singh
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