Hello All, Please me advice Can we deduct PF on leave PL Encashment. if government pass any GR please forwadrd me. Raviraj.
From India, Pune
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5From India, Pune
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Dear Raviraj,
NEW DELHI: In a significant ruling reducing the deductions on the salary sheet, the Supreme Court has held that the money received by an employee from encashing earned leave could not be taken as wages for the calculation of provident fund (PF) contributions.
Deciding a bunch of petitions in favor of the employees, a bench comprising Justices Arijit Pasayat and P. Sathasivam rejected the stand of the regional PF commissioner that the amount received on encashment of earned leave had to be taken into account for the purpose of calculating PF contributions.
The bench allowed the appeals — the lead case being the one filed by Manipal Academy of Higher Education — saying "the inevitable conclusion is that the basic wage was never intended to include amounts received for leave encashment."
It took note of a Mumbai case where an employer was including the amount of leave encashment as emoluments for the purpose of calculating PF dues from the employer as well as employees' contribution. When the Employees' Union took up the issue with the commissioner, it was informed that the provision did not provide for the deduction of PF on leave encashment.
"Where the wage is universally, necessarily, and ordinarily paid to all across the board, such emoluments are basic wages. Conversely, any payment by way of a special incentive or work is not basic wages," the court said.
The judges have also held that not just offenses under 498-A, but also other offenses such as murder, rape, attempt to murder, and causing grievous hurt — which are not specifically mentioned in the law as 'compoundable' offenses — cannot be settled between the complainant and the accused.
Section 320 of the CrPC lists offenses that can be settled between parties at any stage of the prosecution.
Thank you for your attention to this matter.
Best regards,
[Your Name]
From India, Mumbai
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NEW DELHI: In a significant ruling reducing the deductions on the salary sheet, the Supreme Court has held that the money received by an employee from encashing earned leave could not be taken as wages for the calculation of provident fund (PF) contributions.
Deciding a bunch of petitions in favor of the employees, a bench comprising Justices Arijit Pasayat and P. Sathasivam rejected the stand of the regional PF commissioner that the amount received on encashment of earned leave had to be taken into account for the purpose of calculating PF contributions.
The bench allowed the appeals — the lead case being the one filed by Manipal Academy of Higher Education — saying "the inevitable conclusion is that the basic wage was never intended to include amounts received for leave encashment."
It took note of a Mumbai case where an employer was including the amount of leave encashment as emoluments for the purpose of calculating PF dues from the employer as well as employees' contribution. When the Employees' Union took up the issue with the commissioner, it was informed that the provision did not provide for the deduction of PF on leave encashment.
"Where the wage is universally, necessarily, and ordinarily paid to all across the board, such emoluments are basic wages. Conversely, any payment by way of a special incentive or work is not basic wages," the court said.
The judges have also held that not just offenses under 498-A, but also other offenses such as murder, rape, attempt to murder, and causing grievous hurt — which are not specifically mentioned in the law as 'compoundable' offenses — cannot be settled between the complainant and the accused.
Section 320 of the CrPC lists offenses that can be settled between parties at any stage of the prosecution.
Thank you for your attention to this matter.
Best regards,
[Your Name]
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc