If in any case, the F&F is processing after a one or two-month delay, is it really necessary to deduct ESI, PF & PT from the F&F amount? If yes, please share the best industry practices process.
From India, Bhubaneswar
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6From India, Bhubaneswar
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PF, ESI, PT etc. are mandaory deductions for the period which an employee worked. Whether you pay the money today or settle later, it has to be deducted and deposited to concerned statutory agencies.
From India, Bangalore
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From India, Bangalore
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Dear Manoj,
Yes, it is mandatory to deduct PF, ESIC, and PT in F&F as well. Even though you are processing the final settlement after 1 or 2 months, you need to process the due salary in the same month along with your regular employees in the salary register. This way, you will be able to comply with all the statutory deductions. If you find any deductions are still due, you can deduct them from the F&F amount or ask the employee to pay the shortfall. I hope this resolves your query.
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Yes, it is mandatory to deduct PF, ESIC, and PT in F&F as well. Even though you are processing the final settlement after 1 or 2 months, you need to process the due salary in the same month along with your regular employees in the salary register. This way, you will be able to comply with all the statutory deductions. If you find any deductions are still due, you can deduct them from the F&F amount or ask the employee to pay the shortfall. I hope this resolves your query.
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FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip
Full n final settlement.doc