Hi! Everyone,This is sohail and I want to know that is PF deduction applicable on Leave payment or not? If not then can any body send me the fresh gezzette or notification of it please.Thanx.
From India, Surat
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From India, Surat
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Earlier, PF was applicable on leave encashment as per a circular of the Labour Ministry. Now, after a ruling of the High Court, it has been withdrawn, and PF is not applicable on leave encashment.
This is for your kind information, please.
Thanks & Regards, Avika
From India, New Delhi
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118This is for your kind information, please.
Thanks & Regards, Avika
From India, New Delhi
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Avika you are right, as per the supreme court order dated 12.03.2009, manipal academy vs CPFC case, PF is not required on leave encashment.
From India, Lucknow
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From India, Lucknow
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PF is not deducted on leave encashment.According to ho’ble Supreme court it is not a part of wage
From India, New Delhi
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From India, New Delhi
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Hi all,
As per the Supreme Court judgment dated 12.03.2009 and the clarification provided by the Provident Fund Commissioner on 06.07.2008, it has been stated that PF should not be deducted from Leave encashment wages as it does not constitute the basic wage of the employee.
I have attached the clarification issued by the Regional Provident Fund Commissioner for your immediate reference and records.
Mohan Rao
Manager HR
From India, Visakhapatnam
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As per the Supreme Court judgment dated 12.03.2009 and the clarification provided by the Provident Fund Commissioner on 06.07.2008, it has been stated that PF should not be deducted from Leave encashment wages as it does not constitute the basic wage of the employee.
I have attached the clarification issued by the Regional Provident Fund Commissioner for your immediate reference and records.
Mohan Rao
Manager HR
From India, Visakhapatnam
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Hi dear all,
As it is correct that there will be no PF deduction on leave encashment when it is a service benefit for an employee, such as in the case of resignation, retirement, or termination. However, it will be deductible when anybody encashes their leave while they are in continuation of service.
Regards,
Sandy
From India, Nagpur
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As it is correct that there will be no PF deduction on leave encashment when it is a service benefit for an employee, such as in the case of resignation, retirement, or termination. However, it will be deductible when anybody encashes their leave while they are in continuation of service.
Regards,
Sandy
From India, Nagpur
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DEAR ALL,
WITH REFERENCE TO THE QUESTION ON P.F. DEDUCTION ON LEAVE SALARY, THE FOLLOWING IS THE SUPREME COURT JUDGEMENT.
?Encashment of leave will not attract Provident Funds contributions since the definition of ‘basic wages' given under the Act did not intend to include such type of payment besides that the Apex Court in Bridge & Roof Company (India) Limited has also clearly interpreted the term ‘basic wage' hence the reliance as placed by the EPFO on the judgment of Bombay High Court has not been proper.
REFER THE FOLLOWING JUDGEMENT:
From India, Pune
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WITH REFERENCE TO THE QUESTION ON P.F. DEDUCTION ON LEAVE SALARY, THE FOLLOWING IS THE SUPREME COURT JUDGEMENT.
?Encashment of leave will not attract Provident Funds contributions since the definition of ‘basic wages' given under the Act did not intend to include such type of payment besides that the Apex Court in Bridge & Roof Company (India) Limited has also clearly interpreted the term ‘basic wage' hence the reliance as placed by the EPFO on the judgment of Bombay High Court has not been proper.
REFER THE FOLLOWING JUDGEMENT:
2008 LLR 443
SUPREME COURT OF INDIA
Hon'ble Dr. Arijit Pasayat, J.
Hon'ble Mr. P. Sathasivam, J.
Appeal (Civil) 1832 of 2004
Decided on 12.3.2008
Manipal Academy of Higher Education
vs.
Provident Fund Commissioner
From India, Pune
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SC -PF judgment on No PF on Leave encashment.doc
Supreme court judgment on bifurcation of PF.pdf