Processing Provident Fund PF and PT for an employee who was recently terminated by the company


Company ‘A’ has terminated an employee with one month of severance pay, effective from 1st Feb 2024, with the severance pay covering the entire month of February. In the internal records, his last working day is mentioned as 1st Feb 2024. Do we need to process Provident Fund (PF) and Professional Tax (PT) amounts for February in relation to this terminated employee? Additionally, what will be considered as his last working day according to statutory compliances?


Dear @SowmyaJagadish

If I understood the situation right, he will have the full month salary for Feb as part of his final settlement, if that is so, PF and PF tax needs to be deducted accordingly.

His last working day will be the last day of his notice period.

1 Like