PF On Notice Pay Payable

Hi to All,
Is PF deducted on notice pay payable as 3 months salary if the employee is asked to leave the post by employer. Any amendment regarding this please share
Regards

Dear amar
There is no amendment in this issue. if your salary based on CTC concept then your employer ask for that so we will pay other wise no need to pay

Dear Malik Sir,
Is there any amendment regarding the same please forward the same. When i confirm the same with one of PF consultant he told that it will be deducted and not asked me to forward amendment. He said If the person is working for 3 months then his regular salary is paid with all statutory deduction and in this condition company is asking employee to leave his job by paying 3 months salary which will be treated as regular .
As im confused please guide me.
And thanks for your suggestion.
Regards
Amar

dear amar
your consultant is stupid.see,if you are paying in lieu of notice and relieving individual than no PF will be deducted.if you are preparing salary for notice period than PF will be deducted and deposited.
regards
js malik

Malik Sir is right.
Understand basic concept - pf is deducted from salary, paying in lieu of notice period is not salary it is compensation (liquidated damages) for breach of contract(various legal judgement are available on this). For compensation PF will not come in picture.
Example:1) If employer terminate the contract of employment and pay salary in lieu of notice period(do not give notice period) to employee then amount paid to employee is compensation and PF will not be deducted.
2) If employer terminate the contract of employment and give proper notice period to employee and while notice period salary given to employee then PF will be deducted.
Sr. pls Correct me if I am wrong.
For more information : http://kuldeeprathore.blogspot.com/2...otice-pay.html

Thanks Mr. Malik and White Eagle
Your posts are always accurate, to the point and highly knowledgeable. There is always some learning involved.
We as members are highly obliged for your contributions.
Regards.