How to calculate PF incase of LOP

Hi,

  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

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Hi,
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.

2 Likes

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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