Dear Neelam,
The payment made for notice pay with full & final payments shall not attract the P. F. Contribution. As per wage definition of Employees Provident Fund & Misc. Provision Act -1952, the wage means Basic wages, dearness Allow. and any retaining allow. which is earned during the course of employement.
Since Notice pay is not being earned and paid as per the term of employemnt. therefore it is not earned wages as per act and will not attracts P.F. Cotribution.
For your future reference, it is well settled practice that the no employer deduct P.F. contribution on payment for Notice Period as it is not covered under wage definition.
Thanks
Mohd. Arif Khan
9891497178
The payment made for notice pay with full & final payments shall not attract the P. F. Contribution. As per wage definition of Employees Provident Fund & Misc. Provision Act -1952, the wage means Basic wages, dearness Allow. and any retaining allow. which is earned during the course of employement.
Since Notice pay is not being earned and paid as per the term of employemnt. therefore it is not earned wages as per act and will not attracts P.F. Cotribution.
For your future reference, it is well settled practice that the no employer deduct P.F. contribution on payment for Notice Period as it is not covered under wage definition.
Thanks
Mohd. Arif Khan
9891497178