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PF & ESIC Deduction If Employer Is Paying The Notice Pay To Relieve An Employee? - CiteHR

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Saunee
12

Dear Seniors,
At times it happens that when a person resigns by serving the complete notice, companies or the manager decides to relieve the person immediately with full pay of notice period. Generally it happens when there are high chances of employee being turning into negative force after resignation or not working with the same enthusiasm as earlier OR handover of the job does not require more then one or two days.
As the person is leaving today, his DOL will be today but he will be paid for full notice period. in that case is it compulsory to deduct statutory on notice pay like PF and ESIC.?
regards,
Saunee

From India, New Delhi
Glidor
628

depends on management, if the management consider it as additional salary then YES, if management consider it as adhoc compensation then it would not be part of salary and then no such deduction is made

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