Dear All,
One of employee has given the resignation and his last working day was 10th April 2007 and I need your help for his full and final settlement
THE FULL AND FINAL SETTLEMENT FOR 10 DAYS IN APRIL
Basic :Rs. 5400.00 for 10 Days Rs. 1800.00
HRA : Rs 3600.00 for 10 Days Rs. 1200.00
Conveyance : Rs.2000 for 10 Days Rs. 667.00
Reset Allowance : Rs. 1000.00 for 10 Days Rs. 333.00
P.F. Deduction ( 10 Days) : Rs. 432.00
Leave Enacshment ( 44 Leaves) : Rs.11700.00
PF Deduction on leave encashment : Rs. 1404.00
Pls. advise me the above calculation is right and why we deduct PF on leave encashment .
One more thing as most of the company annaunce increment in the month April , but still our organization has not annaunce it . Does we have to show increment on Full and Fianl settlement.
Your soonest reply will behighly appreciated.
Regards
Nirmal

From India, New Delhi
Hi Nirmal,
Thanks for sharing this problem. May I know why u deduct the 24% PF from his salary. Pf part of employee is only 12% and u are deducting 24% from his gross salary.24% PF should be deduct from CTC.
Please solve query.
With regards
Prem

From India, New Delhi
Dear Nirmal,

You have come up with a good problem,according to you the details are-

Basic :Rs. 5400.00 for 10 Days Rs. 1800.00

HRA : Rs 3600.00 for 10 Days Rs. 1200.00

Conveyance : Rs.2000 for 10 Days Rs. 667.00

Reset Allowance : Rs. 1000.00 for 10 Days Rs. 333.00

P.F. Deduction ( 10 Days) : Rs. 432.00 but PF will come 216 only.

Leave Enacshment ( 44 Leaves) : Rs.11700.00 Can you clarify more how have you calculated the same.

PF Deduction on leave encashment : Rs. 1404.00,

Here also, it comes 950 only, as you have to deduct PF for 44 days only, so it will be 12% of total basic payable for 44 days i.e 7920, and accordingly PF deduction amount will come 950 only.

No it is not required to provide him with increment too as he has not received any of the increment letter and he must have surved the notice period, i.e he must have given resignation in the last month. So definitely he will not be eligible to avail the same.

And clarify the method you have applied to calculate the Leave encashment.

Regards,

Amit Seth.

From India, Ahmadabad
Dear Mr. Amit ,
Thanks a lot for your quick reply and for valuable advise .
Your calcution( pf for 10 days , leave enachsment and PF on leave enachmetn ) is aboslutely correct .the mathod i am using for leave enacashment is : Basic /30 Days X No. of EL
I would like to infrom you that in our organization whose salry is more than 10000.00 , their PF 12% Employee's Share and 12% employer's sahre deduct from employees salary .In that case PF deduction for 10 days and PF deduction on leave encashment will be applicable .
Second , why we deduct PF on leave encashement pls. guide me in detail.
Regards
Nirmal

From India, New Delhi
Hi Nirmal,
Sorry to reply you late.
As we encash leaves on the basis of basic salary or in some companies it is been paid on the basis of gross salary even. As these are paid leaves and at the time of submission to the PF department the company has to paid the contribution over the same, so for that purpose it is been deducted from their amount also. And it becomes deposited in their PF fund.
Moreover these are the parts of their working days of employment.
Hope now it will be clear with you.
Regards,
Amit Seth.

From India, Ahmadabad
Dear Mr. Amit,
Thanks for your reply.
As I have mentioned earlier that PF Both Employee and Employer contribuiton has been deducted from employee's salary . So, PF deduction on Basic salary and Leave encashment is mantatory for us at the time full & Final settlement.
Second, what about bonus , as the employee has left the company in the month of April ,2007. Should we show Bonus amount as " ADVANE BOUNS " in full and final settlement.
Your soonest reply will highly apprecaited.
Regards
Nirmal

From India, New Delhi
Dear All,
I have recently joined a construction company and unortunately, have never been in ER. I am now told to work on the FFS for an employee who left us couple of weeks back. In the month of June she worked only for 15 days.She had no sick/casual leave to her credit except for 21 PL.As per her appointment letter she is supposed to serve a notice of 1 month which she hasn't. Can you pls guide me on how to go abt her FFS.Its a little urgent.
Rgds,
Jancy

From India, Mumbai

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