Statutory deductions on Full and Final settlement (F&F)- necessary to deduct ESI, PF & PT from the F&F amount?

If in any case, the F&F is processing after one or two-month delay, then is it really necessary to deduct ESI, PF & PT from the F&F amount, and if yes then please share the best industry practices process...

PF, ESI, PT etc. are mandaory deductions for the period which an employee worked. Whether you pay the money today or settle later, it has to be deducted and deposited to concerned statutory agencies.

Dear Manoj,
Yes, it is mandatory to deduct PF, ESIC and PT in F&F also. Eventhough you are processing final F&B after 1 or 2 months you need to process the due salary in the same month along with your normal employees in salary register. Thus you will be able to comply with all the statutory deductions. Also, still if you found any deduction is due then you can deduct from F&F amount of ask the employee to pay the shortfall. Hope this will resolve your query.