Friends,
Can anybody clarify whether we have to deduct PF on EL encashed at the time of resignation of the employee?
What will be the rate of contribution?
We had a policy to encash EL for a minimum of 35 days.
Regards,
Nikhil
From India, Delhi
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3Can anybody clarify whether we have to deduct PF on EL encashed at the time of resignation of the employee?
What will be the rate of contribution?
We had a policy to encash EL for a minimum of 35 days.
Regards,
Nikhil
From India, Delhi
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Dear Nikhil Greetings As per the attached judgement copy there is no need to recover PF for leave encashment as observed by our Madras high court. Cheers Trisha HR Professional
From India, New Delhi
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From India, New Delhi
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Dear Trisha,
Thank you for sharing valuable information. We have been required to contribute to PF on leave encashment all these years. This decision may prove beneficial for us.
Thank you once again.
Best regards,
Vishwanath
From India, Bangalore
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Thank you for sharing valuable information. We have been required to contribute to PF on leave encashment all these years. This decision may prove beneficial for us.
Thank you once again.
Best regards,
Vishwanath
From India, Bangalore
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Unless the Supreme Court gives the judgment, no judgment can be treated as law. The High Court may issue judgments in some circumstances, but they will not be treated as law. Please note that, as per statutory law, you have to deduct PF on leave encashment. The rate of contribution will be the same, at 12%.
Regards,
Ashutosh Chaturvedi
From India, Mumbai
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Regards,
Ashutosh Chaturvedi
From India, Mumbai
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NO PF Contribution on Leave Encashment - SC judgment-Clarif ication by EPFO.pdf
Taxability of leave encashment on resignation.doc