PF Contribution Responsibilities
PF contribution should be from both parties (employer & employee). Is the company liable to ask the employee to contribute the whole amount from the employee's pocket for EPF? In such a case, the company is not paying any amount towards the employee's PF. Please advise.
Thanks,
Arockia
From India, Madras
Acknowledge(0)
Amend(0)
PF contribution should be from both parties (employer & employee). Is the company liable to ask the employee to contribute the whole amount from the employee's pocket for EPF? In such a case, the company is not paying any amount towards the employee's PF. Please advise.
Thanks,
Arockia
From India, Madras
Acknowledge(0)Amend(0)
Hi Arockia! All deductions and benefits depend on the design of your salary. If the salary is stated as CTC (Cost to Company), contributions and deductions will be made from your CTC. If the salary is stated as Gross Salary, then both parties have to contribute their own parts.
Hope you will understand what you wanted to know.
From India, New Delhi
Acknowledge(0)Amend(0)
9Hope you will understand what you wanted to know.
From India, New Delhi
Acknowledge(0)Amend(0)
Employers' PF contribution is a cost to the company, whereas Employees' PF will always be deducted from his/her salary. This way of showing the employers' contribution and including it in the CTC is not actually correct according to statutory acts. Essentially, the employers' contribution to PF is deducted from the gross salary, resulting in the net salary.
Thank you.
Regards
From India, Visakhapatnam
Acknowledge(1)Amend(0)
Thank you.
Regards
From India, Visakhapatnam
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf