Is It Necessary to Deduct PF and ESIC When Paying Notice Period for Immediate Employee Relief?

Dear Seniors, At times, it happens that when a person resigns by serving the complete notice, companies or the manager decide to relieve the person immediately with full pay of the notice period. Generally, it happens when there are high chances of the employee turning into a negative force after resignation or not working with the same enthusiasm as earlier, or the handover of the job does not require more than one or two days.

As the person is leaving today, his DOL will be today, but he will be paid for the full notice period. In that case, is it compulsory to deduct statutory amounts on notice pay like PF and ESIC?

Regards, Saunee

Depends on management. If the management considers it as additional salary, then YES. If management considers it as ad-hoc compensation, then it would not be part of the salary, and no such deduction is made.