Supreme Court Ruling: How Does It Affect Leave Encashment and Your EPF?

Dear Friends,

Please see the attachment. The Supreme Court has now formally declared that Leave Encashment amount is not considered a basic wage for the deduction of PF.

Hi,

Can you please explain the leave encashment? Is PF deducted at the time of leave encashment?

Regards,
Leena Paulose

Dear Leena,

Please read carefully the document attached by Kumar HP; you will get the answer to your query.

Thank you.

Dear Friends,

Please see attachment. The Supreme Court has now formally declared that Leave Encashment amount is not considered as basic wage for the deduction of PF. Please provide me with a scanned copy of your attachment as it is not clear.

Regards,
Ilangovan A

Dear,

It is a landmark ruling.

With Regards

V. Sounder Rajan

E-mail: rajanassociates@eth.net

The amendment has been made in the PF scheme. One thing to note is that the amount of contribution towards Leave Encashment can be adjusted against future remittances. Has anybody done that?