If the employee has notice until the 8th of July, and the employer has released the employee early on the 31st of May but pays the salary until the 8th of July as compensation, what is the Date of Exit/Leaving the Company in EPFO? Is it the 31st of May or the 8th of July? And if the employee joins another organization before the 8th of July, what is the exit date in EPFO? Please clear this doubt.
From India, New Delhi
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From India, New Delhi
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If you have relieved the employee on May 31st, the date of exit should be May 31st. At the same time, if you have paid the salary until July 8th, then PF should also have been deducted, right? Then the date of exit should be July 8th. Now, if you have settled the dues as of May 31st but have paid 'compensation' or notice pay for early relieving, then you should account for that part of the salary, i.e., salary for the month of June and until July 8th, as Notice Pay and not as Salary. Then you need not deduct PF in June and July, and you can exit the employee on May 31st itself. If the employee joins a new company before July 8th, it will not clash with the joining date in his new company. I recommend that you should mark the exit on May 31st itself and whatever amount is payable for the period from June 1st until July 8th should be paid as compensation for early relieving or Notice Pay, which will not attract PF.
From India, Kannur
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4526From India, Kannur
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EPFO Simplified PF Transfer Process.jpeg
Early PF withdrawal won’t be easy.pdf