Hi Everybody,
Greetings !!!!
I work as an employee in a software company.(last 3 years)
My Basic salary is Rs. 6800.
However my company is taking a deduction of Rs.1602 as PF.(effective from sep payroll)
Is this Legal.
As of I know employee should contribute 12 % from his basic towards PF and the same percentage of contribution should be from the employer end if i am not wrong.
Could anyone please help me and clarify my doubts.
Thank You well in advance.
Thanks And Regards
Pritu Singh

From India
Hi Pritu
is your company a proprietary concern?
the amounts shown does not tally with 12% of PF, there may other deductions included.
As per PF act , they may take Rs.6500 basic and deduct or deduct on total basic of Rs.6800 both are legal and acceptable under PFact.
Please check with payroll team what are the components in the total deduction of 1602 , before you conclude

From India, Hyderabad
Thanks Laxmi.

As our accountant says their is a way they can deduct 25 % and some more percentage as part of PF from Employee Account.Thats including 12 % for the employee and 12 % deduction from the employer.

So do confirm me one thing is that deduction legal subject to the payroll rules and regulation in india.

Please find my payslip details for july without effect of PF

Particulars Amount Rs.


Basic Salary 6,800

House Rent Allowance 2,720

Medical Allowance 1,360

Conveyance Allowance 800

Food Allowance 1,000

LTA 816

Others 3504

Gross Earnings 17000



Professional Tax -150

Payslip with effect of PF


Basic Salary 6,256

House Rent Allowance 1250

Medical Allowance 1,360

Conveyance Allowance 800

Food Allowance 1200

LTA 751

Others 4241

Gross Earnings 17000


Deductions Amount Rs.

Insurance -

Professional tax-150





Other Deduction-

Gross deduction-1752

Do confirm is this legal.

Waiting for your valuable revert

From India
I think your employer is deducting both Employee (12%) and Employer (13.61%) contribution (i.e. 25.61%) from your salary, which is not as per the act.
PF Deduction
If ( Basic + DA) is less than or equal to 6500/-
- Employer should deduct 12% of PF from employees salary
If ( Basic + DA) is greater than 6500/-
- Employer can deduct 12% of PF from employees salary or
- Employer can restrict PF deduction to Rs.780/-
While remitting PF to RPFC, employer also has to remit following:
PF Administration Charges – 1.1 %
EDLI Charges – 0.5 %
EDLI Administration Charges – 0.01 %
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From India, Mumbai
Please find what is your case from below mentioned criteria What your company doing is legal if yours is 'CTC' What company doing is illegal if yours is 'Salary'
From India, Kochi
Your pf deduction is only 12% rs 1602/- is right and legal, no extra wrong deducted
From India, Kolkata
Your pf deducted as new rule from september 2013 :
Basic (actual) 6800
hra (actual) 2720
medical (actual) 1360
conv (actual) 800
fooding (actual) 1000
lta (actual) 816
total 13496
less : P tax(fix) 150
total 13346
pf (only your) 1601.52 (12% of rs 13346)
(round off of 1601.52) is 1602/-

From India, Kolkata
Your calculation is wrong.PF is not deductible from components other than basic and DA(if paid) limited to Rs 6500/- .In the above case there is no DA.The circular dtd 30.11.2012 to include all allowance as basic is now on hold.It appears that employer is deducting his share also from employees salary.
Varghese Mathew

From India, Thiruvananthapuram
Is this the first time that the company is having PF from its employees ?
There is a rule in the act that prevents reduction of wages for paying pf,
If that is the case,the employer will, be in trouble,

From India, Mumbai
While offering/calculating CTC/yearly package to any employee, employer’s share of PF is considered to arrive at total gross ctc. I think this employer has misunderstood the concept, and deducted his share also from employees salary. Also, to include all allowances, other than Basic, for PF calculation, is also wrong.
From India, Mumbai

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