TaxTMI 
TaxTMI 
Dear all,
For overtime wages ESI & PF to be deducted? is it compulsory?
Expecting ur views
Venkat
Overtime wages ESI & PF
13 Apr 2016 
8 Replies 
19197 Views Asked by
Overtime wages excluded from basic wages under EPF Act, so provident fund contributions generally not leviable; ESI treatment disputed.
Discussion concluded that the Employees' Provident Funds Act defines basic wages to exclude overtime allowance and similar allowances, so overtime is not included in basic wages for PF calculation and PF contributions are generally not leviable on overtime; forum contributors disagreed about ESI applicability and no definitive statutory resolution for ESI was provided in the thread. (AI Summary)
Discussion concluded that the Employees' Provident Funds Act defines basic wages to exclude overtime allowance and similar allowances, so overtime is not included in basic wages for PF calculation and PF contributions are generally not leviable on overtime; forum contributors disagreed about ESI applicability and no definitive statutory resolution for ESI was provided in the thread. (AI Summary)