Dear Senior In any given situation where employer terminating employee by giving notice pay.My query is if employer should deduct PF employer contribution from notice pay.
From India, Madras
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2From India, Madras
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First and simple thing is that the employer will contribute for every working single day of an employee. For example, if you are employed/working for 5 days in a month, it doesn't matter whether you were on notice period or not; it will be counted for the deduction of EPF from both sides (employer and employee contribution).
From India, Gurgaon
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From India, Gurgaon
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Dear Saurav, Even though on Notice Pay, his Basic+D.A salary will attract P.F (Employer + Employee) in case employee is member & his contribution is remitted. Regards, Anil
From India, Mumbai
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From India, Mumbai
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Hi Saurav,
The definition of basic wages under Sec. 2(b) of the P.F Act 1952 covers only those emoluments that are earned by an employee while on duty. Wages paid in lieu of notice of termination do not fall under the purview of basic wages, and hence in my opinion, P.F need not be deducted on notice pay. There are e-books to address such doubts.
B. Sai Kumar
Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd.
From India, Mumbai
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The definition of basic wages under Sec. 2(b) of the P.F Act 1952 covers only those emoluments that are earned by an employee while on duty. Wages paid in lieu of notice of termination do not fall under the purview of basic wages, and hence in my opinion, P.F need not be deducted on notice pay. There are e-books to address such doubts.
B. Sai Kumar
Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd.
From India, Mumbai
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Here, two sets of thoughts are contradicting on the above-mentioned issue. Mr. Anil Kumar Arora and Mr. Anil are saying PF should be deducted on notice pay, but Mr. B. Sai Kumar is of the opinion that PF should not be deducted during the notice period.
Dear Senior,
I am unable to come to a conclusion on this debatable issue. I request your help in reaching a common conclusion.
From India, Madras
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Dear Senior,
I am unable to come to a conclusion on this debatable issue. I request your help in reaching a common conclusion.
From India, Madras
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[QUOTE=saurav1314;1739367]Dear Senior,
Please help me to arrive at a common conclusion.
Hmm, okay. Now, you just need to visit the links posted below because we have already discussed the same topic. You'd have gotten it yourself if you had tried to search by using the "Research" option located on our site page. You can also find the relevant discussed threads/posts on the sidebar of this page under "Similar Topics".
https://www.citehr.com/61096-pf-dedu...-urgent-2.html
https://www.citehr.com/134072-notice...duction-3.html
From India, Gurgaon
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Please help me to arrive at a common conclusion.
Hmm, okay. Now, you just need to visit the links posted below because we have already discussed the same topic. You'd have gotten it yourself if you had tried to search by using the "Research" option located on our site page. You can also find the relevant discussed threads/posts on the sidebar of this page under "Similar Topics".
https://www.citehr.com/61096-pf-dedu...-urgent-2.html
https://www.citehr.com/134072-notice...duction-3.html
From India, Gurgaon
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Notice pay is a kind of compensation for a stipulated period,So it should not attract EPF, While notice period from either side will attract EPF contiribution, Jimmii
From India, Delhi
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From India, Delhi
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Dear Mayoor,
Before criticizing or asking from others, you must first check if you can obtain it yourself. You mentioned that you are totally dissatisfied; may I ask you a few questions? To whom are you dissatisfied? Were you making a request or commanding others to do this for you? No one is at your service here, not especially for you, but for all - for sharing knowledge and experience with others, for learning from this esteemed place, and to do whatever one can for others in need, but not as you were expecting or commanding.
Don't you think you can use the options provided to you by this platform? There are many related posts on the sidebar of this page under "Similar Topics," and you can also use the "Search" option for this purpose.
I request you to please think thrice before making a comment or saying anything. I hope you will take this in a positive sense. I apologize if my reply has hurt you in any way because your comment compelled me to write this to you.
From India, Gurgaon
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Before criticizing or asking from others, you must first check if you can obtain it yourself. You mentioned that you are totally dissatisfied; may I ask you a few questions? To whom are you dissatisfied? Were you making a request or commanding others to do this for you? No one is at your service here, not especially for you, but for all - for sharing knowledge and experience with others, for learning from this esteemed place, and to do whatever one can for others in need, but not as you were expecting or commanding.
Don't you think you can use the options provided to you by this platform? There are many related posts on the sidebar of this page under "Similar Topics," and you can also use the "Search" option for this purpose.
I request you to please think thrice before making a comment or saying anything. I hope you will take this in a positive sense. I apologize if my reply has hurt you in any way because your comment compelled me to write this to you.
From India, Gurgaon
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Hi! If an employer terminates an employee by giving one month's notice, let's consider an example: if an employee is currently in the month of September, and the employer issues a letter terminating them with one month's notice, around October. During this one month, the employee remains on the company's payroll, continues working, and is considered an employee of the organization until October. Therefore, the employee is entitled to receive their salary for that period, and the employer must also deduct PF contributions.
In contrast, if an employer terminates an employee without a notice period in September, only the deductions for September are calculated.
From India, Hyderabad
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In contrast, if an employer terminates an employee without a notice period in September, only the deductions for September are calculated.
From India, Hyderabad
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Hello,
Can anyone please tell me if ESI and PF are applicable from the first day of duty even if a person is under probation? Also, please inform me of the breakup of salary and if any rules are applicable while calculating basic/DA/HRA, etc.
Thanks,
NRV
From India, Calcutta
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Can anyone please tell me if ESI and PF are applicable from the first day of duty even if a person is under probation? Also, please inform me of the breakup of salary and if any rules are applicable while calculating basic/DA/HRA, etc.
Thanks,
NRV
From India, Calcutta
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Hi Neerav Shah,
In terms of paragraph 26 of the P.F. Scheme 1952 framed under the P.F. Act 1952, an employee is covered by the P.F. Act from the first day of his joining if his pay does not exceed Rs. 6,500 per month, even though he is under probation.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai
From India, Mumbai
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In terms of paragraph 26 of the P.F. Scheme 1952 framed under the P.F. Act 1952, an employee is covered by the P.F. Act from the first day of his joining if his pay does not exceed Rs. 6,500 per month, even though he is under probation.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai
From India, Mumbai
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Dear All,
In our factory, we are remitting the PF for our workers regularly. However, a few months ago, we engaged some contract workers for other tasks, but we did not remit for these contract workers. During the EO inspection, the HR team discovered this and reported it to the Sub-Regional office. The Assistant Commissioner then issued a notice to us to produce the Balance Sheet, Ledger, Cashbook, etc. In the balance sheet, what will they verify, and what should we hide anything pl........?
Shunmugaraj.S Anbu Engineering Industries
From India, Madras
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In our factory, we are remitting the PF for our workers regularly. However, a few months ago, we engaged some contract workers for other tasks, but we did not remit for these contract workers. During the EO inspection, the HR team discovered this and reported it to the Sub-Regional office. The Assistant Commissioner then issued a notice to us to produce the Balance Sheet, Ledger, Cashbook, etc. In the balance sheet, what will they verify, and what should we hide anything pl........?
Shunmugaraj.S Anbu Engineering Industries
From India, Madras
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Greetings to All Seniors,
Sir,
I am working as a Manager - HR in an engineering company. I take charge only four days in that company. My first task is to face the EPF hearing case. The AC of the Sub-Regional Office gave a showcase notice to our management for not contributing to the EPF for contract workers. They are demanding our Balance sheet, Ledger, Cashbook, Vouchers, attendance register, Payroll register, and all other related records to verify, sir.
Can anyone help me with how we can escape from these? Why are they verifying our Balance sheet, Ledger, and Cashbook?
From India, Madras
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Sir,
I am working as a Manager - HR in an engineering company. I take charge only four days in that company. My first task is to face the EPF hearing case. The AC of the Sub-Regional Office gave a showcase notice to our management for not contributing to the EPF for contract workers. They are demanding our Balance sheet, Ledger, Cashbook, Vouchers, attendance register, Payroll register, and all other related records to verify, sir.
Can anyone help me with how we can escape from these? Why are they verifying our Balance sheet, Ledger, and Cashbook?
From India, Madras
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Hi Shunmuga,
It is the responsibility of the principal employer to ensure that contract employees' statutory compliance is met in all respects. In the given situation, you may always reach out to the statutory authority and request some additional time in writing.
Meanwhile, you can check with your contractor to verify if they have complied with the statutory requirements. If not, you can deduct the necessary amount from their monthly fees and remit it towards the statutory payment of the contract employee. Subsequently, show the challan to the statutory authority.
This approach can help you manage this crisis effectively. I hope this information proves helpful. Should you require further assistance, please feel free to reach out.
Regards
From India, Madras
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It is the responsibility of the principal employer to ensure that contract employees' statutory compliance is met in all respects. In the given situation, you may always reach out to the statutory authority and request some additional time in writing.
Meanwhile, you can check with your contractor to verify if they have complied with the statutory requirements. If not, you can deduct the necessary amount from their monthly fees and remit it towards the statutory payment of the contract employee. Subsequently, show the challan to the statutory authority.
This approach can help you manage this crisis effectively. I hope this information proves helpful. Should you require further assistance, please feel free to reach out.
Regards
From India, Madras
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Sub-P.F. Query
Mr. Saurav is right. In terms of Para (30) of the P.F. Scheme 1952, the Principal Employer is liable in the first instance to pay the P.F. contribution of contract workers. Under Sec. 7-A of the P.F. Act, the P.F. authorities have the power to determine the amount of P.F. that is due from your company, and for that purpose, they verify the company's relevant records.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai.
From India, Mumbai
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Mr. Saurav is right. In terms of Para (30) of the P.F. Scheme 1952, the Principal Employer is liable in the first instance to pay the P.F. contribution of contract workers. Under Sec. 7-A of the P.F. Act, the P.F. authorities have the power to determine the amount of P.F. that is due from your company, and for that purpose, they verify the company's relevant records.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai.
From India, Mumbai
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Respected Sir / Madam Please tell me what is PT slab Rate of Orissa for the year 2011-12 as soon as possible . Regards Rajesh Panda 9439801524
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Senior,
Is there any specific government circular or order in connection with the deduction of provident fund for employees who are drawing a salary of more than Rs. 6,500/-? Can you please suggest to me?
Regards,
Bala Velicheti
From India, Hyderabad
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Is there any specific government circular or order in connection with the deduction of provident fund for employees who are drawing a salary of more than Rs. 6,500/-? Can you please suggest to me?
Regards,
Bala Velicheti
From India, Hyderabad
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Mr. Anil,
Thank you for your information. I wish to submit that I have already gone through the website and forwarded the contents to my superiors. However, they have a doubt regarding PF deduction being done up to a salary of Rs. 6,500/- as usual. They are insisting that I show the relevant supporting Government circular or GO for employees who are drawing a salary above this amount.
Please advise me on this matter.
Regards,
Bala Velicheti
From India, Hyderabad
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Thank you for your information. I wish to submit that I have already gone through the website and forwarded the contents to my superiors. However, they have a doubt regarding PF deduction being done up to a salary of Rs. 6,500/- as usual. They are insisting that I show the relevant supporting Government circular or GO for employees who are drawing a salary above this amount.
Please advise me on this matter.
Regards,
Bala Velicheti
From India, Hyderabad
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Hmm, okay, then you must visit the weblinks below for more details. I want you to read the past discussions, which will give you a better understanding. But before this, you must visit this weblink where you will find several official circulars and notifications related to this.
- https://www.citehr.com/332645-pf-query.html
- https://www.citehr.com/173695-pf-esi-norms.html
- https://www.citehr.com/332645-pf-query.html
Also, there is a document enclosed for your perusal. I hope this will work for you.
From India, Gurgaon
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- https://www.citehr.com/332645-pf-query.html
- https://www.citehr.com/173695-pf-esi-norms.html
- https://www.citehr.com/332645-pf-query.html
Also, there is a document enclosed for your perusal. I hope this will work for you.
From India, Gurgaon
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Dear Mr. Anil,
Could you please help me with PF matters? We are planning to hire employees in Nepal and Bangladesh, but they will be on Indian payrolls. What would be the PF liability?
Regards,
Ishu
9711152000
From India
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Could you please help me with PF matters? We are planning to hire employees in Nepal and Bangladesh, but they will be on Indian payrolls. What would be the PF liability?
Regards,
Ishu
9711152000
From India
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
INTERNATIONAL-W ORKERS-IWs-UNDE R-THE-EMPLOYEES ’-PROVIDENT-FUN D-SCHEME-1952-A ND-THEIR-COMPLI ANCE.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls
Provident fund.zip