Provident Fund Deductions in My New Company
I joined a new company in March. My previous company did not have the Provident Fund system. In my new company, as per my offer, only one PF deduction is shown, but in reality, two PFs are deducted. When I inquired with HR, they explained that one is the company's contribution, and the other is my personal contribution. This deduction reduces my net salary.
Question on Personal Contribution
Is it possible to stop the personal contribution or withdraw the amount? If yes, please tell me the procedure.
Regards
From United Kingdom,
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1I joined a new company in March. My previous company did not have the Provident Fund system. In my new company, as per my offer, only one PF deduction is shown, but in reality, two PFs are deducted. When I inquired with HR, they explained that one is the company's contribution, and the other is my personal contribution. This deduction reduces my net salary.
Question on Personal Contribution
Is it possible to stop the personal contribution or withdraw the amount? If yes, please tell me the procedure.
Regards
From United Kingdom,
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If your basic salary is more than Rs. 6500 per month, you are exempt from PF. However, generally, in organizations that have PF, employees do not opt for it because it is difficult to monitor. Moreover, PF is a good thing, and you should avail of it. Also, try to understand that if you do not avail of PF, you will be losing out on the employer's contribution, which is a loss.
For any further clarification, feel free to write or discuss.
From India, Mumbai
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For any further clarification, feel free to write or discuss.
From India, Mumbai
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Understanding PF Contributions
PF contribution is always seen as 12% EE (Employee contribution) and 12% ER (Employer contribution) of the basic pay. If you have already opened a PF account, you cannot close it or withdraw any amount unless you decide to resign from the organization.
Usually, a lot of companies that follow a CTC structure do not show one part of the contribution on the payslip. PF is a good saving option, though it brings down your take-home pay. To know more about PF, you can visit epfindia.com. This site is very helpful and will help you gain a better understanding.
Regards,
Namrata
From India, Mumbai
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PF contribution is always seen as 12% EE (Employee contribution) and 12% ER (Employer contribution) of the basic pay. If you have already opened a PF account, you cannot close it or withdraw any amount unless you decide to resign from the organization.
Usually, a lot of companies that follow a CTC structure do not show one part of the contribution on the payslip. PF is a good saving option, though it brings down your take-home pay. To know more about PF, you can visit epfindia.com. This site is very helpful and will help you gain a better understanding.
Regards,
Namrata
From India, Mumbai
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I have joined an organization with a salary of 12000. They are deducting 930/- every month for PF and ESI. However, the issue is that they are not providing any PF number or ESI number. I don't know if they are making payments to the government or not. If I wish to file a complaint regarding this matter, whom should I contact, and what is the procedure for lodging a complaint against an organization?
From India, Hyderabad
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From India, Hyderabad
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