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shamarao narayan yelgawakar (v.p.hr)     02 January 2010

p.f.on leave wages

Dear Sirs,


Sub:  Supreme Court Judgement on payment of Provident Fund Contribution on Leave Encashment


Further to this office circular dated 5th March 2008, we are glad to inform you that The Hon’ble Supreme Court, in its Judgement delivered on Wednesday, the 12th March 2008, held that leave encashment did not form part of the wages. Therefore, there was no question of payment of Provident Fund contribution on leave encashment.


The Hon’ble Supreme Court has further held that such amounts paid earlier would be adjusted against future amounts of Provident Fund contribution payable in the case of concerned employees. 


Copy of the Judgement will be circulated in a day or two.


As you are aware, the original petition in the Supreme Court was filed by Manipal Academy of Higher Education (MAHE), Manipal and Millowners’ Association, Mumbai (MOA) had impleaded in the matter on behalf of the textile industry.

Yours faithfully,


( V.Y. Tamhane )

Hon. Secretary-General




 4 Replies

Sunita Lad (Advocate and Consultant)     02 January 2010

The judgements are as under:

-Manipal Academy for Higher Education V P F Commissioner 2008 I CLR 1017 (SC)

-Thiru Arooran Sugar ltd. V Asst. P F Comissioner 2008 I CLR 258 (Mad)

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     02 January 2010

It is very good information you have posted in this form.

Vijayarajan (Executive Director)     06 January 2010

Really useful information

manishvansh1 (n/a)     09 January 2010

Thanks for the information

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