How to calculate PF incase of LOP


  1. For LOP:
    In case the Basic + DA is less than 15,000 due to LOP, please let us know if PF also would get reduced as it is calculated as 12% of Basic. Similar question for new joinees who have joined in the middle of the month and Basic + DA for the number of days worked is less than 15,000

  2. On what basis is the recovery amount calculated if the employee fails to serve the notice period


EPF shall be calculated on earned EPF Wages (Basic Pay + DA) and shall be not be prorated on INR 15,000/- pm or INR 1,800/- .

Recovery of NP is subject to Termination clause of the Appointment Letter and Salary-in-lieu of Notice Period.


Agree with @Yogesh_Ramaiah

EPF shall be calculated on what is earned for the payroll period (in both the cases) & Notice period recovery is always subjected to what has been mutually agreed during the appointment letter or contract assignment.

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