Notice Pay and PF Deduction Issues
The issue is that if you pay notice pay after deducting PF, you cannot exit him immediately but only after 1st May. If the employee joins another company on the 2nd of April or any date prior to May 1st, his date of joining and your date of exit will not match, and that will become an issue later on. Moreover, notice pay is not a salary arising out of employment; it is not earned by the employee through working, and therefore, there is nothing wrong in not paying PF for the notice pay.