Mrs. Arora
1

Greeting to All Seniors, Please update is Salary arrear affect my PF account. Also Leave Encashment would affect PF deduction. Kindly update Regards Ruchi
From India, Delhi
ravi5554
427

Hi, Ruchi, PF deduction only includes(Basic+DA+retention allowances) accept this there is no component will effect to PF.
From India, Mumbai
tushar.swar
206

Dear Mrs. Arora,
Yes, PF & ESIC shall be effect on Arrears salary..
If in case, last month you got paid less due to any circumstances, & your company paid you for those days in this month, then those days PF, ESIC (If applicable) PF & ESIC shall be attract on those days salary & same way the employer need to contribution on the same.
The difference amount of PF & ESIC need to pay in prescribe month along with your respective month salary.
There is nothing any deduction shall be attract on Leave Encasement.
If you can elaborate the case, it would be better understanding & members also advise you in appropriate way.

From India, Mumbai
sibabrata.majumdar
80

Dear Friend,
With regard to your first query , yes, PF contribution will be payable on arrear salary / wages only on Basic,DA &Retention Allowance other than other allowances .
As regards your second query , no , PF contribution will not be payable on leave enchantment.
Hope it clears your doubt.

From India, Calcutta
Adoni Suguresh
150

Dear Sir,
I am making here little correction. The deduction of Provident Fund definitely will attract with the salary arrears and leave encasement also . These two are nothing but the part of the salary. Now the question comes whether these payments are included in the monthly salary sheet or to be paid separately If these are included in the monthly salary sheet and then PF ceiling to be taken care. If not showing in the salary sheet and is being shown in supplementary pay sheet .and again you have to take care of PF ceiling.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

From India, Bidar
ravi5554
427

Hi,
Adoni,
I am making here little correction. The deduction of Provident Fund definitely will attract with the salary arrears and leave encasement also . These two are nothing but the part of the salary. Now the question comes whether these payments are included in the monthly salary sheet or to be paid separately If these are included in the monthly salary sheet and then PF ceiling to be taken care. If not showing in the salary sheet and is being shown in supplementary pay sheet .and again you have to take care of PF ceiling.
I need clarification on leave encasement as you said, can you provide the clause or any section regarding that leave encasement attracts PF.

From India, Mumbai
ms.basu99@gmail.com
Dear Ruchi
your Arrers salary is Effective on your Pf Account & arrers salary is Deduction With PF & ESIC both
but Leave Enchashment will not be Effective on Your PF & ESIC, PF having particulora slabs Basic+DA but leave Enchament is depend on your company policies & it is considere in NCP Days thatsway it is not dedected.
Regards
Basavaraj
HR Excutive

From India
pon1965
604

Ignore my previous post. as per the supreme court order dated 12.03.2009, manipal academy vs CPFC case, PF is not required on leave encashment.
From India, Lucknow
Hetal Maroliwala
Hi, I do no think you should be facing trouble with PF if you have company close also will be paid to full This both is separate thing Thanks Regards Admin.Manager-Hetal M, Mobile No:9819390616
From India, Mumbai
Adoni Suguresh
150

Dear Sir,
I shall be thankful to you if you would kindly place the Supreme Court order on PF deductions on leave encashment in case of manipal acadamy vs CPFC for the information of all readers, If I remember correct in the year 2004 manipal vs RPFC was awarded the judgement that PF contribution is applicable in case of Leave Encashment. I will search for the order. In the mean time I expect Supreme Court Order.
Adoni Suguresh
Labour Laws Consultant

From India, Bidar
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