Dear All,
Please consider the fact,
firstly we are paying x amount against notice (in case of employer fire the employee) and we are recovering x amount in case employee leaves the organisation.
such amount does not come under the defination of SALARY /WAGES.
No pf to be deducted.
Secondly calculation of notice pay it can be one month to three months depending upon the strength of organisation.
Regards
Dabas
From India, Delhi
5Please consider the fact,
firstly we are paying x amount against notice (in case of employer fire the employee) and we are recovering x amount in case employee leaves the organisation.
such amount does not come under the defination of SALARY /WAGES.
No pf to be deducted.
Secondly calculation of notice pay it can be one month to three months depending upon the strength of organisation.
Regards
Dabas
From India, Delhi
Dear All, Can i get the Mumbai high court Judgement copy regarding this discussion. Regards Amar
From India, Mumbai
From India, Mumbai
Dear Senior, Please help me to in this matter as our management is asking for the mumbai high court judgement for "pf deduction on notice pay" Regards Amar
From India, Mumbai
From India, Mumbai
Dear Sonia,
No need to deduct PF on notice pay. The EPF contribution attract only on the earned wages, not on such ex-gratia payments. Such payments are not earned but being paid as per the contract of service or terms of emplyment.
Therefore, PF will not be deducted on Notice Pay. Moreover, please read the definition of wages in section 2 (b) under The EPF & Misc. Provisions Act-1952. It is clearly stated on earned wages while on duty or on leave.
Notice period payment does not qualify as a wages or earned wages.
So, Never deduct PF on notice pay.
Thanks
Arif Khan
9891578605
No need to deduct PF on notice pay. The EPF contribution attract only on the earned wages, not on such ex-gratia payments. Such payments are not earned but being paid as per the contract of service or terms of emplyment.
Therefore, PF will not be deducted on Notice Pay. Moreover, please read the definition of wages in section 2 (b) under The EPF & Misc. Provisions Act-1952. It is clearly stated on earned wages while on duty or on leave.
Notice period payment does not qualify as a wages or earned wages.
So, Never deduct PF on notice pay.
Thanks
Arif Khan
9891578605
Dear All,
Please clarify above mentioned subject issue. In one of our Client Organization employer had Terminated the employee with a Three Months Notice period and with Basic Pay for Three Months luie. For this three months Period Basic salary we have to deduct Provident Fund Contribution of employee or not ?
If we deduct the Contribution from employee how we can show the last working day (for theree months termination period) as per provident fund act.
Resards
Sudheer
From India, Bangalore
Please clarify above mentioned subject issue. In one of our Client Organization employer had Terminated the employee with a Three Months Notice period and with Basic Pay for Three Months luie. For this three months Period Basic salary we have to deduct Provident Fund Contribution of employee or not ?
If we deduct the Contribution from employee how we can show the last working day (for theree months termination period) as per provident fund act.
Resards
Sudheer
From India, Bangalore
Dear Friends,
As per EPF Act-1952, Sec-2(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer.
Above section clearly specify that employee getting wages directly or indirectly from employer, why PF will nit Deduct from Notice Pay.
Thanks & Regards,
Manas Ranjan Pal
HYDERABAD
Mob: 9052800665
From India, Hyderabad
As per EPF Act-1952, Sec-2(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer.
Above section clearly specify that employee getting wages directly or indirectly from employer, why PF will nit Deduct from Notice Pay.
Thanks & Regards,
Manas Ranjan Pal
HYDERABAD
Mob: 9052800665
From India, Hyderabad
Dear Srinu,
If your Basic+DA is above 15,000/- then you can be exempted from PF contribution otherwise it's mandatory to contribute the 12% of your Earned (Basic +DA) .
Regards,
Vipin Singh
9923570399
From India, Mumbai
If your Basic+DA is above 15,000/- then you can be exempted from PF contribution otherwise it's mandatory to contribute the 12% of your Earned (Basic +DA) .
Regards,
Vipin Singh
9923570399
From India, Mumbai
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PF notice to establishments 28082019.pdf
Pf notice.jpg
Notice pay recovery certificate.doc