we have termination of employee in our firm with giving one month salary compensation. Will PF and ESIC applicable on that compensation?
From India, Patna
Will not be applicable. PF & ESI contribution are payable on wages earned. The payment for notice period is not covered under the definition of wages in the respective Acts.
From India, Mumbai
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PF ESIC.xls
Legal Clarification on Termination for Criminal Case & PF Contribution Reduction.pdf