Dear vinay, There was a judgement as given by our citehr member earlier (given below),no pf on noticepay. My question is whether is there any other judgement followed by that.
For the benefit of all, I hereby qoute the Bombay High Court Judgement in the matter of "India United Mills Ltd. v. RPFC" that a pyment made in lieu of notice by way of consideration for terminating the contract of employment of a permanent employee does not constitute "basic Wages" under section 2(b) of the PF Act.
The Hon'ble court stated that the expression 'emoluments which are earned by an emplyee while on duty' represents the amounts actually earned by by an employee kduring the period of his employment while he is actually on duty. The payment in question is not a payment earned for duty done. It is not a payment earned while on duty. It is a payment by way of consideration for terminating the contract of employment of a permanent employee without notice. The payments made cannot in any sence be regarded as representing 'emoluments earned while on duty and are not and do not consitute 'basic wages' within the meaning of the definition given in the Employees' Provident Funds Act, 1952, and no percentage thereof is payable by way of provident fund contribution.
Therefore the emoluments towards notce pay do notattract pf.
Hope the above clarification will close the matter for further discussion.
30th September 2011 From India, Madras