Dear all,

I want clarification on these topics:

1. Will the employer give the PF contribution if an employee's basic salary is greater than Rs. 15,000 (for both new joiners and existing employees)?
2. What types of leaves are liable under labor law provisions when an employee is in the probation period?
3. Are there any provisions in labor laws regarding the limitation of the number of days for earned leave encashment when an employee resigns from their service?

With regards,
Jitendra Kumar
HR Executive

From India, New Delhi
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Dear Jitendra,

Please find the reply as follows:

1- Will the employer give the PF contribution if the employee's basic salary is greater than Rs. 15,000 (new joiners and non-new joiners)? If the employee's basic salary is over Rs. 15,000 and the employee has never been a member of PF, then PF contribution need not be deducted from the employee and should not be paid by the employer. In any other case, contribution is mandatory. However, regarding the employer's contribution, the employer can restrict it to the limit of Rs. 15,000.

2- What types of leaves are liable under labor law provisions when an employee is in the probation period? It doesn't matter if the employee is on probation or a regular employee; the same laws will apply regarding leaves. Leave policies may vary from state to state, so refer to your state act for specific details.

3- Are there any existing provisions in labor laws regarding the limitation of the number of days for encashing earned leave when an employee resigns from their service? It depends on the company's policy, but it cannot be less than the minimum leave accumulation limit prescribed by the law.

Thank you.


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Dear Sir,

Your statement implies that if an employee's basic salary is increased from Rs. 15,000 to Rs. 17,000 through yearly increments, the employer has the option regarding their PF share contribution. The employer could choose to contribute or not. However, the employee's PF contribution (12%) will continue based on the actual basic salary. Am I correct?

Thank you.

From India, New Delhi
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No, you are misunderstanding me. If the salary limit is increased from 15 - 17 K, that does not mean the employer has an option to not contribute. The only option the employer has is to restrict their contribution amount to Rs. 1800/- only, i.e., they can restrict their contribution up to Rs. 15000, but cannot stop it.

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Dear Sir, Thanks alot for your valueble clearefication on this topic. Regards Jitendra Kumar
From India, New Delhi
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