During COVID 19 layoff for 25 days - is it mandatory to deduct ESI/PF for the employees?

ranjithjashi

Dear Team, If a factory giving layoff for 25 days, is it mandatory to deduct ESI/PF for the employees for the layoff period?

Bhartiya Akhil

Dear Ranjithjashi,
Lay off compensation is not a basic wages as defined in PF Act. Workman gets it when he is not working. Or we can say, it is not earned while on duty. Therefore PF is not attract on Lay off compensation.
However, ESI attract on Lay off as per section 2(22) of ESI Act. It is included expressly.

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