Understanding Earned Leave: Does It Affect ESI and PF Contributions?

rajspolice@gmail.com
I am working in a private company as an HR Executive. I need help clarifying the earned leave salary. Is earned leave applicable for ESI and PF?

Regards,
Kanagaraj.
fc.vadodara@nidrahotels.com
Do you pay for earned leave? If yes, then are all statutory payments applicable?
Alphonse
You need not recover PF or ESI from earned leave encashment. It is not considered a salary.

Regards,
Alphonse
rajspolice@gmail.com
Recently, the SSO came from ESI and informed us that earned leave salary is applicable for ESI deduction. Please send any proof or amendments.

Regards,
Kanagaraj
fc.vadodara@nidrahotels.com
If it is encashment, then no ESI/PF is applicable. If the Earned Leave is availed and salary is paid, then yes, of course, ESI/PF is applicable.
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