Re: Statutory Dedcuctions

Dear Forum Members,
whether Statutory dedcuctions like PF /ESI/PT is applicable for if any compensation paid to the employees
Thanks,
Rajesh N

If by compensation payable you mean retrenchment compensation, then ESI or EPF need not be deducted since it is not earned by the employee by working in the company. At the same time, since it is an income in the hands of the employee, profession tax which is paid on the income and not on the 'salary' of the employee, should be deducted from the amount of retrenchment compensation.
Regards,
Madhu.T.K

Dear Madhu Sir,
Namaskaram.
My query is Can EL/PL be nullified by the emploer?
A maximum of 45 can be accumilated and above that can be encashed.
1.If an employee doesn't wish to encash them, can he encash all the ELs accumilated during F&F.
2. Can Employer cancel any ELs above 45?
3. If the employee has not taken any ELs, can he claim for encashment in the next year(if the ELs accumilated are above 45). What is the proceduer,if any?

Depending upon the policy of the company he can do so. As per law there is a limit to the number of ELs which can be accumulated and the same varies from establishment to establishment depending upon whether the establishment falls under Factories Act, Mines Act, Plantations Labour Act or Shops and Commercial Establishments Act.
Regards,
Madhu.T.K