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Former Member
Jan 05, 2007 at 08:01 AM

PF deduction Problem on Leave Enchasment: IMPORTANT


Scenario: Occurs when Leave Encashment is Done

(Assume that employee is active and not in leaving action process)

As i want to deduct PF on that Leave encashment amount ,i ticked the cumulation class 11 (EPF Basis) of that wage type.

Now monthly PF deduction is coming correct(/3f5).

<b>But the same 12 % of Leave encashment wage type is getting multiplied by rest of months remaining and coming in technical wage type /3F6(annual PF) as cumulated.</b>

<b>It should not happen bcoz it will affect the tech WT /434 .and inturnn the Income tax calculations becomes wrong.</b>

This means that the payroll is projecting that PF amount for all the months(but leave encashment is happens once in a while)

Note: I had maintained my Leave Encashment Wage type in IT 0015.

If i remove the PF basis tick mark then no PF will be deducted.

Please Help me on this issue.