Notice Period Dilemma: Should We Deduct PF from Resigned Employee's Salary?

Dear Professionals,

Wishing you a great day ahead! Could anyone please let me know if an employer should deduct PF contributions from an employee's salary for the month in which the employee is under a notice period that has been served by the employee themselves?

Case Study

The employee tendered her resignation on November 1, 2014. We are currently in the process of preparing the salary sheet for November 2014. Should we deduct PF?

Thank you.

Yes, you have to deduct PF from his November 2014 salary, whether it is in full and final settlement or in the salary sheet. The notice period is only for the employer's ease.

An employee who has served the notice of resignation for a future date will continue to be an employee until the date of his employment ends. Therefore, contributions under the EPF & MP Act, 1952, both the employees' share as well as the employers' share, are payable.

Thank you to all, especially to Dr. Brigadier V. Ramanan, whose suggestion is truly remarkable. Dr. V. Ramanan, this wish actually came from the employee's end as she has received a remarkable salary hike, exceeding the EPF ceiling, in her new organization. Since she only has a two-month-old EPF account, she was reluctant to continue with it.

Now everything is clear, and EPF has been deducted.

Thanks once again.