What is Non Contributory Period (NCP) Days in PF and How to calculate NCP days?
NCP days means no PF amount will be there for those days. Suppose if an employee is absent for 10 days in a month, accordingly his EPF/EPS salary will be decreased. PF will be calculated as per the days present, i.e. 20 or 21, depending upon the number of days in the month.
I think now the NCP days are clear.
NCP calculation: If basic salary is 15k or more than 15k then based on number of LOPs for a particular month if employee’s basic salary gets affected (goes below 15k) then that LOPs willl be counted as NCP days in PF.
But if basic salary does not go below 15k after considering LOPs then it will not count as NCP days in PF.