PF deduction while employee is on notice period? - CiteHR
Mahr
Head - Human Resources
Apex Management
Labour Laws Consultants
Gurramsatya
Manager - Hr
+1 Other

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hello everyone I am working in one of the service industry in HR. I want to know about PF deduction while employee is on notice period. plz revert. Your valuable guidance will helpful to me.
Thanks & Regards
yash karale

Hi Yashavant, If you questions is whether PF will be deducted while you serve the notice period, then it is YES.
Hi Yashavant it varies from companies to companies. Few companies do not pay PF for notice period as they consider it low productivity perioud. But generally this is a payable to companies.
Regard
Nauman Ahmad
CEO & Founder
PeopleQlik
Cloud HR | Payroll | HRMS | HCM Software in Saudi Arabia

Dear Mr. Yash Karale, If employee is under epf act then it is compulsory to deduct the pf till last working day.
Dear Mr Karale,
If your question relates to notice period wages, then absolutely, EPF contribution is payable treating his wage as "earned wage".
However, no EPF is payable on Notice pay which is paid in lieu of notice, for which please refer to Definitions of Basic Wages under section 2(b) of the EPF & MP Act 1952 which clearly says : "basic wages" means all emoluments which are earned by an employee while on duty or on leave or holidays with wages........ As such the notice pay is not a earned wage and EPF contribution is not payable.
P K Sharma

Hi All,
I have a query regarding PF.
I work for a construction industry. Here availability of labour is a difficult task. We pay them in cash as they are:
1. Casual & Migratory Workers
2. Most of them don't have Bank Accounts or any photo ID for opening bank accounts
3. They work under Labour Contractor.
PF authorities are issuing notice and forcing us to enrol these casual workers under EPF or else servicing us notices. According to them, even if a worker worked for a day, PF needs to be deducted.
While making it compulsion, workers are threatening to leave the work. We are in great trouble. After convincing, we could get the ids of couple of workers who were having Aadhar and Address Proof. And obviously, we are paying that above the committed amount (from our pockets)
Recently, I heard that if a person has worked for more than 60 days, then only they should be made member of PF. I am not sure how far it is true.
Kindly Advise.
Satya

Mr Satya,
Your concern may be right at your end but as the provisions of the EPF Act are applicable, you are liable to deduct and deposit the EPF whether the worker has worked for a day or so and PF authorities rightly forcing you to enroll casuals as member of EPF.
There KYC like aadhar, bank account etc. are compulsorily required to be obtained by you and your assumption of treating workers as exempted who works upto 60 days is wrong.
P K Sharma

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