If staff is laid off due to economic crisis - but pays the staff in lieu of notice period (3 months salary)are we liable to pay PF for the 3 months or only for the month in which exit is processed ?
ex: an employee's gross salary is Rs.20000/ month - during layoff we are paying them Rs. 60,000 and deducting PF only for one month. Similarly, company is also employer PF contribution for one month. Is this correct?
From India, Bengaluru
Dear Member, EPF Contn-Employee & Employer is Payable only on Salary Earned.Notice Payment does not attract EPF Contribution.While framing question, Pl apply your mind.Layoff Payment/Notice Payment/Relieved/Exit? you are not sure
From India, New Delhi