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Former Member
May 15, 2008 at 09:54 AM

deduction of provident fund on leave encashment-new rule

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DEAR ALL,

As a statutory requirement provident fund is being deducted on leave encshement. employer is also bound to pay the PF contribution on the same leave encashment.

but as a recent judgement of supreme court and subsequent clarification issued by PF authorities, provident fund will not be deducted on leave encashed neither from employees account nor from employer.

so please suggest me , how i will make the necessary changes in SAP-HR module so that such changes will be effective from this month onwards.

Tapas