Hi, Can anyone send us the notification of PF deduction on Leave Encashment???? its very urgent Regards Satyanarayana
From India, Hyderabad
From India, Hyderabad
Dear Satyanarayana, As desire please find enclosed herewith Notification on " No PF Deduction of Leave Encashment". Regards,
From India, Rewari
From India, Rewari
Hi sathya,
I have an artical pls go through it it may help you bit...
Supreme Court has held on 12 March, 2008 that the money got by an employee from encashing earned leave could not be taken as wages for calculation of provident fund (PF) contributions.
Deciding a bunch of petitions in favor of the employees, a bench comprising Justices Arijit Pasayat and P Sathasivam rejected the stand of regional PF commissioner that the amount received on encashment of earned leave had to be taken into account for the purpose of calculating PF contributions.
The bench allowed the appeals — the lead case being the one filed by Manipal Academy of Higher Education — saying “the inevitable conclusion is that basic wage was never intended to include amounts received for leave encashment”.
It took note of a Mumbai case where an employer was including the amount of leave encashment as emoluments for the purpose of calculating PF dues from the employer as well as employees’ contribution. When the Employees’ Union took up the issue with the commissioner, it was informed that the provision did not provide for deduction of PF on leave encashment.
”Where the wage is universally, necessarily and ordinarily paid to all across the board, such emoluments are basic wages. Conversely, any payment by way of a special incentive or work, is not basic wages,” the court said.
From India, Bangalore
I have an artical pls go through it it may help you bit...
Supreme Court has held on 12 March, 2008 that the money got by an employee from encashing earned leave could not be taken as wages for calculation of provident fund (PF) contributions.
Deciding a bunch of petitions in favor of the employees, a bench comprising Justices Arijit Pasayat and P Sathasivam rejected the stand of regional PF commissioner that the amount received on encashment of earned leave had to be taken into account for the purpose of calculating PF contributions.
The bench allowed the appeals — the lead case being the one filed by Manipal Academy of Higher Education — saying “the inevitable conclusion is that basic wage was never intended to include amounts received for leave encashment”.
It took note of a Mumbai case where an employer was including the amount of leave encashment as emoluments for the purpose of calculating PF dues from the employer as well as employees’ contribution. When the Employees’ Union took up the issue with the commissioner, it was informed that the provision did not provide for deduction of PF on leave encashment.
”Where the wage is universally, necessarily and ordinarily paid to all across the board, such emoluments are basic wages. Conversely, any payment by way of a special incentive or work, is not basic wages,” the court said.
From India, Bangalore
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PF deduction on leave encashment.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf