Is Professional Tax Deducted During Maternity Leave for Contract Employees?

Dear Seniors, I have one query that needs to be resolved as soon as possible. Please help me in getting out of this. One of our employees is on a contract, and she went on maternity leave for 3 months. We are not covered under ESI coverage and have less than 10 employees, but still, management has given Rs 5000 as a medical benefit. Since she is absent for all these 3 months, she doesn't receive any kind of pay other than Rs 5000.

Question on Professional Tax Deduction

My question is: Is her monthly payment subject to Professional Tax deduction or not?

I also want to know if the PT is like this. For Rs 5000 - 6000, it is Rs 60. For Rs 6000 - 7500, it is Rs 80.

Then, if an employee works for the whole month and gets Rs 7500, Rs 80 should be deducted as PT. But what if he is not present for some days and his salary is Rs 5500, how much PT should be deducted? Is it Rs 60 or Rs 80?

Please excuse me for the second question as Professional Tax would be deducted on Gross Pay and Gross pay would be before any deductions so an employee, even if he is absent, then also his PT will be calculated on 7500.

Now please answer my 1st question.

Dear Bha,

If the person falls in the tax bracket, definitely you have to pay the PT.

Regards,
Carmel

Thank you, Carmel. She falls under the tax bracket because she receives 11000 PM. However, as she is on maternity leave, she will not receive any pay due to loss of pay for the whole month. Instead, she is paid 5000 as a medical benefit. Now, which pay should we consider, 5000 or 11000?

Hi Bhandhavi,

Please confirm if the Medical Benefit of 5000/- is a part of the Gross Salary of 11000/-? In such case, the P tax would be deducted as per the slab of 11,000/-.

Thanks,
Sangeeta

Hi atoz,

No, it is not a part of the gross salary. It is a benefit given to her at the management's discretion and is not in accordance with the rules.

Thank you, but in my opinion, medical benefits are offered out of gratitude and are not related to her salary. Her salary is $11,000, and since she was not present for the whole month, the entire amount is being deducted due to Loss of Pay (LOP). Professional Tax (PT) is calculated on the gross amount before deductions, so PT should be deducted, right? Please correct me if I am wrong.

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Thank you.

Dear all,

During maternity leave, is salary not paid to the employee? Is it not a paid leave? Please clear my doubt.

Regards,
Shaoli