Can you please clarify the EL rules? Let's consider a scenario where an individual has 15 days of EL accrued and leaves the company either by resignation or termination with 10 days of EL remaining unused. Should the person be paid for or be eligible for those 10 days before their departure? Additionally, should EL wages be factored into calculating PF contributions as well?
Please advise.
From India, Kozhikode
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Please advise.
From India, Kozhikode
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The paid leave applies to the privileged leave only. In case your company policy specifies the encashment of leave for earned leave (EL) as well, then it needs to be paid along with the full and final settlement. The PF wages do not include the EL wages.
From India, Bangalore
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From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc