dear seniors
It is statute to deduct pf on the leave availed/encashed during the service tenure of an employee. But how far it is correct to deduct pf from the monetery benefits for the un-availed leave paid to an outgoing/separated employee in his final settlement.
Can you please justify
with regards,
srp : :?
From India, Gurgaon
2It is statute to deduct pf on the leave availed/encashed during the service tenure of an employee. But how far it is correct to deduct pf from the monetery benefits for the un-availed leave paid to an outgoing/separated employee in his final settlement.
Can you please justify
with regards,
srp : :?
From India, Gurgaon
Hi SRP,
In order to answer your querry one has to refer to the definition of term 'Basic wage" which includes cash value of food concession and dearness allowance. This definition includes all emoluments earned by an employee while on duty, or on leave, holidays with wages...........which are paid or payable in cash to him"
In the case cited by you, the leave has not been availed but the same has been encashed while settling the final dues. This will be covered by the words "paid or payable". In my view, provident fund amount should be deducted.This will also be to the advantage of the incumbent as he will be entitled to the matching contribution of the employer as well. In case however, the balance leave lapses and no advantage is accrued by the individual,in my view, no provident fund will be deducted.
cyril
From India, Nagpur
In order to answer your querry one has to refer to the definition of term 'Basic wage" which includes cash value of food concession and dearness allowance. This definition includes all emoluments earned by an employee while on duty, or on leave, holidays with wages...........which are paid or payable in cash to him"
In the case cited by you, the leave has not been availed but the same has been encashed while settling the final dues. This will be covered by the words "paid or payable". In my view, provident fund amount should be deducted.This will also be to the advantage of the incumbent as he will be entitled to the matching contribution of the employer as well. In case however, the balance leave lapses and no advantage is accrued by the individual,in my view, no provident fund will be deducted.
cyril
From India, Nagpur
Hi! Thatz true!! I want to clear my doubt that in our company PF is deducted but after resigning from the company, is it possible to get the PF easily? Regards, Swati
From India, Surat
From India, Surat
Hi Swati,
The provident fund deductions made from your salary is to be credited to your account maintained with the EPF office. If the organization where you are working is an exemted one, and has its own provident fund scheme, the amount is to be kept in a fund to be maintained by the exempted PF organization.
On separation from service you are entitled to the refund of provident fund accumulations including matching contribution of the employer. You have to make a claim for withdrawl of accumulations to the EPF authorities, through your employer. The procedure has been prescribed in the Act. ( Clause 72 (5) (a) (b) )of EPF scheme. In case, however, you are joining another organization which is covered under the EPF Act you can get the accumulations transferred and continue as a member of provident fund.
There should be no difficulty in getting the withdrawl benefit as the Act has made very clear provisions on the subject.
Cyril
From India, Nagpur
The provident fund deductions made from your salary is to be credited to your account maintained with the EPF office. If the organization where you are working is an exemted one, and has its own provident fund scheme, the amount is to be kept in a fund to be maintained by the exempted PF organization.
On separation from service you are entitled to the refund of provident fund accumulations including matching contribution of the employer. You have to make a claim for withdrawl of accumulations to the EPF authorities, through your employer. The procedure has been prescribed in the Act. ( Clause 72 (5) (a) (b) )of EPF scheme. In case, however, you are joining another organization which is covered under the EPF Act you can get the accumulations transferred and continue as a member of provident fund.
There should be no difficulty in getting the withdrawl benefit as the Act has made very clear provisions on the subject.
Cyril
From India, Nagpur
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SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc