Hi All Colleagues, If a company terminates an employee on 01-04-2023 and pays one month's advance salary at the time of termination, will PF be deducted on that one month advance salary? Please provide your response urgently.
From India, Delhi
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From India, Delhi
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Notice Pay and PF Deduction Issues
The issue is that if you pay notice pay after deducting PF, you cannot exit him immediately but only after 1st May. If the employee joins another company on the 2nd of April or any date prior to May 1st, his date of joining and your date of exit will not match, and that will become an issue later on. Moreover, notice pay is not a salary arising out of employment; it is not earned by the employee through working, and therefore, there is nothing wrong in not paying PF for the notice pay.
From India, Kannur
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4556The issue is that if you pay notice pay after deducting PF, you cannot exit him immediately but only after 1st May. If the employee joins another company on the 2nd of April or any date prior to May 1st, his date of joining and your date of exit will not match, and that will become an issue later on. Moreover, notice pay is not a salary arising out of employment; it is not earned by the employee through working, and therefore, there is nothing wrong in not paying PF for the notice pay.
From India, Kannur
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SALARY with out PF Deduction.xls
PF Online Advance PPT.pdf
PF Advance rule.doc