Salary in lieu of notice

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Can I please be guided as to matter of " Emloyer's Contribution towards Provident Fund on Salary in lieu of Notice  "? My contention is that we are going to pay two months salary as Salary in lieu of notice to one of our employees and whether we should treat it as salary and if it is yes, whether PF should  be deducted from that amount .

Regards

Saroj

Replies (2)

Hi...

If u r paying  salary during Notice period to Employees...Then it is salaries n u have to deduct PF as usual...

If you are paying 2 months salary to the employee in lieu of notice period, PF neednot be deducted since this is only compensation.


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