Employees’ Provident Fund – Leave encashment Liability for PF Contribution
Important Notification
Please refer to the August-2005 issue of “Labour Laws On Your E-Mail” wherein the circular reference No. Co-ord/3(4)/clarifications/2882 dated 16th May 2005, issued by the Additional Central Provident Fund Commissioner (Compliance) has been mentioned stating that “leave encashment paid on or after 1.10.1994 comes under the ambit of basic wages for payment of Provident Fund contributions in confirmation with the judgments of various Courts in the country.
Now, in view of the representations made to the Union Labour Ministry and EPF Organisation, setting out various implementation problems and requesting them for implementation of the Notification of PF contributions on leave encashment with a prospective date, the Office of the Central Provident Fund Commissioner has issued a clarification.
The clarification along with Notification from the EPF Organisation (Copy attached) states that the establishments should deduct PF contribution on leave encashment from 1st May 2005 onwards and the claim between 1st October 1994 to 30th April 2005 will be kept in abeyance to be decided by the Central Board of Trustees in the next meeting.
Important Notification
Please refer to the August-2005 issue of “Labour Laws On Your E-Mail” wherein the circular reference No. Co-ord/3(4)/clarifications/2882 dated 16th May 2005, issued by the Additional Central Provident Fund Commissioner (Compliance) has been mentioned stating that “leave encashment paid on or after 1.10.1994 comes under the ambit of basic wages for payment of Provident Fund contributions in confirmation with the judgments of various Courts in the country.
Now, in view of the representations made to the Union Labour Ministry and EPF Organisation, setting out various implementation problems and requesting them for implementation of the Notification of PF contributions on leave encashment with a prospective date, the Office of the Central Provident Fund Commissioner has issued a clarification.
The clarification along with Notification from the EPF Organisation (Copy attached) states that the establishments should deduct PF contribution on leave encashment from 1st May 2005 onwards and the claim between 1st October 1994 to 30th April 2005 will be kept in abeyance to be decided by the Central Board of Trustees in the next meeting.