| dcpl Started The Discussion: If an employee is absent (leave without pay) for say 6 days in a month. The gross salary would be reduced at a pro-rata basis accordingly. Due to this the PF contribution for that particular month also goes down. The local PF inspector claims that the PF contribution cannot be lowered. Doesnt make sense, can somebody help?
[ archnahr ] (Senior Member)
Hi, I dony knowhow come the PF person is saying that it would not go down. You are absolutely correct as per the Law the PF will be calculated on the reduced monthly salary. There is nothing written in any of the books related to PF contribution that the PF will not be reduced if the person id on Leave without pay, Ask him/ her for clarification and by the time take the photocopy of this act from PF Act. Cheers Archna
[ hrg ] (Senior Member)
hi The PF authority claim is not sustainable. Sec 2[b] defines 'basic wages' .It means all emoluments which are earned by an employee while on duty". Therefore when an employee is on loss of pay,he does not earn any salary, therefore no contributions are liable to be deducted/paid. hrg-rajaram
[ nn_tiwari ] (Contributing Member)
As per section 2 (b) Basic Wages means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case. It is clear that it will be applicable only on earned wages for the month. It seems the PF inspector is misleading you. You be firm on your point & if inspector insist, you ask him to give him in writing. N N Tiwari
[ Anonymous ] (Guest)
Do'nt ask for writing. These people can write all sort of bullshit. Instead ask for a copy of such notification or schedule that mentions that PF shall not be paid on BASIC paid during that wage period or that it cannot be lowered. That'll solve ur problem.
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