If staff is laid off due to an economic crisis - but pays the staff in lieu of the notice period (3 months' salary), are we liable to pay PF for the 3 months or only for the month in which the exit is processed? For example, an employee's gross salary is Rs. 20,000 per month - during layoff, we are paying them Rs. 60,000 and deducting PF only for one month. Similarly, the company is also making the employer PF contribution for one month. Is this correct?
From India, Bengaluru
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From India, Bengaluru
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What do you mean by lay off? Why are you paying Rs 60000 when the salary is Rs 20000 pr month? Do you mean to say that you have retrenched the workers?
From India, Kannur
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4526From India, Kannur
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Dear Member,
EPF Contribution - Employee & Employer is payable only on the salary earned. Notice payment does not attract EPF contribution. When framing your question, please apply your mind. Is it regarding layoff payment, notice payment, being relieved, or exiting? If you are unsure, please clarify.
From India, New Delhi
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EPF Contribution - Employee & Employer is payable only on the salary earned. Notice payment does not attract EPF contribution. When framing your question, please apply your mind. Is it regarding layoff payment, notice payment, being relieved, or exiting? If you are unsure, please clarify.
From India, New Delhi
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf