Notice Pay Provident Fund

Hi all
I need a help..
following is my salary structure
gross 8125
in hand 7383
pf employer-371
pf employee-371
Now comes question
I have left the company by paying 1 month salary(notice pay) .they recovered the gross salary from my side..that is 8125..Now my question is that.. is pf also to be included in the notice pay..
please help
ronny23

Dear Ronny,

Greetings for the day:)

Normally Basic pay is considered as notice period pay
I can't understand why they are calculating on gross pay

could you please confirm whether it is written in your appointment letter???

And PF is not included in Notice period pay

What if the appointment letter is vague ie it states "3 months salary in lieu..." without mentioning Gross or Basic?

Dear Ms Shikha,

It will be 3 months basic pay as allowance are only payable to you when you working not in other cases
There is no need to mention gross or basic in appointment letter it is always presumed as basic pay

Hi
pf not included in this case,
suppose ur date of leaving service (last day) is 31/01/2010 and u r paying 1 month salary
Rs.8125/- (i.e., notice pay, they r not deducting the pf from ur salary).
Regards
Murthy

well today i called the hr and discussed this matter ..i said that you have taken gross salary from me..which includes the pf ,will you submit the same to my pf account..she said no..
i left the company on 11 feb..which makes my 11 day salary pending..that i have to recover from the company..i as i was discussing the mater about pf she said that your pf would not be submitted .but pf would be given for 11 days salary..
Further i come to know that annually each employee gets a form 3a which tell the detail about the pf amount credited to pf account by employer..i asked about this to my hr she said we never provide any such detail to employee..isnt it strange
and regarding my appointment letter its not mentioned in my appointment letter about the pf stuff
Thanks

Hi Ronny,
the Notice period recovery is only the basic salary any tax components as applicable, however it will absorb PF because PF is a part of Basic Salary ie 12% of your basic sal is PF contribution.
Regds
Bharath

didnt get you..you are saying that its right to take pf as a part of notice pay..?so my company did right by recovering gross salary from me..
further what about form 3a that employer provides to employee..anually which have the pf details as i mentioned in my previous reply

Hi Ronny
Plz find below for ur querry
The expression ‘emoluments’ which are earned by the employee while
onduty, occuring in section 2(b) of the Act represents the amount actually earned by an employee during the period of his employment while he is actually on duty. The payment made in lieu of notice could not in any sense be regarded as expressing ‘emoluments earned while on duty’ and would constitute ‘basic wages’ within the meaning of definition given in section 2(b) of the Employees’ Provident Fund and Miscellaneous Provisions Act.
Reference:
India United Mills Vs Reg.Provident Fund Commissioner, Bombay AIR 1960 Bombay 203; 1969 2 LLJ 733.
Hope the above is suffice
Tks & Regards

Hi
it s not the matter of PF
Bcs for PF deducted on basic pay plus DA
if your gross salary 8125 then PF could not be deducted
bcs you know limit for PF is either 10,000 or above 10,000
You had mentioned your PF deduction but it depend upon
company to company policies .