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Hi, What is method of P F Calculation on leave encashment? Option 1. Should we deduct the PF on Basic+DA? Option 2. Should we deduct the PF on Gross Pay? Arjun
Hi Arjun, Naresh is right. It has to be deducted on BAsic+DA subject to ceiling of Rs 6500 if ceiling is being followed. Amit Goyal
Hi, There is no need for deduction of PF on leave encashment. PF is to be deducted only when you pay salary. Regards, Raja
Dear Raja, As per the last amendment now The Leave encashment also attracts PF deductions. This is for your information. Amit Goyal
Dear All,
Plz find attached Scrap pages from "The Charted Accountant" May 2006 issue. You may take the reference of Para 3 stating that Central Provident Fund Commission issued circulars on various dates and finally required the employers to deposit the PF contribution on encashment of leave amount.
Amit Goyal

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File Type: pdf pf_on_leave_encashment_204.pdf (259.0 KB, 515 views)

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