Overtime wages ESI & PF

[venkat eswaran]

Dear all,

For overtime wages ESI & PF to be deducted? is it compulsory?

Expecting ur views

Venkat

AI Summary

Debate on Inclusion of Overtime Wages in ESI and PF Deductions; Clarification on Basic Wages Under EPF Act. A discussion was initiated regarding whether overtime wages are subject to deductions for Employees' State Insurance (ESI) and Provident Fund (PF) in India. One participant argued that overtime wages should be considered part of the salary, thus subject to ESI and PF deductions. Another participant countered that PF and ESI apply only to basic salary, not overtime, which is governed by the Factory Act. The definition of 'basic wages' under the Employees' Provident Funds Act was cited, clarifying that overtime is excluded from basic wages. Participants expressed gratitude for the clarification provided.