COVID-19 Lockdown Compensation: Is PF Deduction Required for Daily Wage Workers?

Hello,

Due to the COVID-19 lockdown, our firm is closed. However, the company wants to provide some compensation, which may be equal to a full month or half-month salary, to the staff working on daily wages.

Is the deduction and payment of PF mandatory on such compensation, allowance, or relief?

Yes, Partner,

The deduction and payment of PF would still be mandatory if this is paid as a salary payout. The employees still have the option to proceed on a pandemic advance withdrawal from the PF funds if they need to. This can be either up to 3 months of basic wages or 75% of the accumulated PF fund, whichever is lesser.