Employee Absent All Month: Should We Still Pay Their EPF Contributions?

Sir, if an employee did not attend for a complete month, how can we calculate his EPF? Can we stop paying his EPF for that particular month, or should we pay it in full? Please clarify this confusion.

No, if your employee worked even for one day, you still need to pay EPF.

Dear Ramasu,

PF contribution will be applicable if you process the salary for the employee. Are you really going to process the salary for an employee who has not attended the office even for a single day? If yes, then PF is payable; otherwise, there is no need to pay the contribution for the associate.

If the salary has not been processed, there is no need to pay PF as well.

Dear Ramasu,

PF contribution is payable on the basis of basic wages, dearness allowance, and retaining allowance (if any) actually drawn during the whole month. An employee may not attend work but be on paid leave, and so their wages are drawn; the PF contribution is to be paid (Clause 29(3) of EPF Scheme). However, if it is unpaid leave or absence without leave, then no wages are drawn, and there will be no liability to pay PF.