Dear Seniors, Can you tell me about pf or ESIC deduction on bonus & leave encashment. Thanks & regards zainul
From India, Lucknow
2From India, Lucknow
Dear All, As per my knowledge we have to pay PF on leave encashment. We need not pay PF and ESI on Bonus (If it is statutory bonus). Regards, Raghav
From China
From China
Dear Zainul,
As per Supreme Court decision dated 12.3.2008 PF is not applicable on leave encashment. For ESI on Bonus is applicable if the bonus is related to productivity, attendance etc., not in annual bonus. Any component comes in payslip for more than 2 months will be applicable for ESI deduction.
Regards, Sekar Devaraj
Dy Manager(HR)
Honeywell, Chennai.
From United States, Morristown
As per Supreme Court decision dated 12.3.2008 PF is not applicable on leave encashment. For ESI on Bonus is applicable if the bonus is related to productivity, attendance etc., not in annual bonus. Any component comes in payslip for more than 2 months will be applicable for ESI deduction.
Regards, Sekar Devaraj
Dy Manager(HR)
Honeywell, Chennai.
From United States, Morristown
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
Case - PF on leave encashment.doc