Hello,
Due to the COVID-19 lockdown, our firm is closed. However, the company wants to provide some compensation, which may be equal to a full month or half-month salary, to the staff working on daily wages.
Is the deduction and payment of PF mandatory on such compensation, allowance, or relief?
From India, Agolai
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Due to the COVID-19 lockdown, our firm is closed. However, the company wants to provide some compensation, which may be equal to a full month or half-month salary, to the staff working on daily wages.
Is the deduction and payment of PF mandatory on such compensation, allowance, or relief?
From India, Agolai
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Yes, Partner,
The deduction and payment of PF would still be mandatory if this is paid as a salary payout. The employees still have the option to proceed on a pandemic advance withdrawal from the PF funds if they need to. This can be either up to 3 months of basic wages or 75% of the accumulated PF fund, whichever is lesser.
From India, Bengaluru
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61The deduction and payment of PF would still be mandatory if this is paid as a salary payout. The employees still have the option to proceed on a pandemic advance withdrawal from the PF funds if they need to. This can be either up to 3 months of basic wages or 75% of the accumulated PF fund, whichever is lesser.
From India, Bengaluru
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SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc