One of our employees has taken more leave, so two days are NCP for him. His PF salary will be reduced from ₹15,000 to ₹14,032. Do we need to mention his gross salary after subtracting the salary for two days?
Yes, the salary on which PF is contributed should be proportionately reduced by the number of loss of pay leave days. Then for a PF salary of Rs 15,000, in a month with two days LOP, the PF salary should be shown as Rs 14,032 with 29 days as days worked or 2 NCPs.
Always consider the PF salary, and if there is a loss of pay, consider cutting the PF salary proportionate to the LOP days.
Regards,
MVK
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute