ESI / PF for Notice pay

Answer to ur query

My  assumption  is the notice pay for one month or two months will be treated as wages and P.F.,E.S.I to be deducted from the notice pay.

 Dear Sir,

The following renumeration are not to be considered as wages.

Notice pay or retrenchment compensation

Cash benefit received under the ESI scheme

Fixed conveyance allowance.   Etc.

We will now discuss some of the important court decisions defining the term wages.

Section 2(22) Wages – Meaning of – Inam paid or to be paid to employees of Braithwaite and Co. (India Ltd under its Inam scheme dated December 28 1955 is not

Wages within the meaning of Section 2(22) of the Act.

dear sir,

If any employee was terminated without any piror notice & retrenchment benifts,who has been employed for three years.Under this circumstance can an employee file a petition to seek justice and final settlement of salaries.expenses including the providend fund in the labour court?

Saraswathy ji...thanks for your guidance...little clarity i require...notice pay will not fall under the category of inam, i believe...it has to be treated as wages...Employer is not allowing the employee to work for the entire month instead paying some amount and relieving...had employee worked entire month he would have eligible for pay...therefore, it has to be treated as wages as per ESI Act...

Definitely it is wages say paid in advance without seeking work of the employee and this wages requires deduction of EPF and ESI as per provisions.

 dear sir,

Notice pay will not fall under the category of Inam. Even though employer is not allowing the employee to work for the entire month, Notice pay  has to be treated as compensation and ESI.,PF not to be duducted .  When you are showing in the ledger under wages & salaries account,you have to mention notice pay paid to so & so member.

Hi Sinuvasu

     if the company terminated service without giving any notice or compensation then u have very good case and u will get justice, but u have to give more info on how termination is effected then i can give u proper advice how to initiate action