Deduction of PF on Earned Leave During F&F
Is it necessary to deduct PF on earned leave at the time of F&F as per the PF Act? If 'Yes', how can we remit the same? Currently, we are entering the date of relieving for the past month through ECR. We might conduct F&F at a later stage for a particular employee.
From India, Hyderabad
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5Is it necessary to deduct PF on earned leave at the time of F&F as per the PF Act? If 'Yes', how can we remit the same? Currently, we are entering the date of relieving for the past month through ECR. We might conduct F&F at a later stage for a particular employee.
From India, Hyderabad
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No PF deductions on EL Encashment. Leave encashment should not be taken as wages for the calculation of Provident Fund (PF) contributions/deductions. This has been applicable since March 2008, following the Supreme Court judgement in Manipal Academy for Higher Education Vs. PF Commissioner.
For your reference, please go through the attached circular issued by the EPFO.
Regards,
Kamal
From India, Pune
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For your reference, please go through the attached circular issued by the EPFO.
Regards,
Kamal
From India, Pune
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PF Deduction_Leave Encashment.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf