Hi Friends, I have one question. As per the new PF rule, I am coming under PF contribution, as my basic slab is in between 6500 to 15000. Initially, I was told that you are in-hand salary will be around 17500 where no PF was getting deducted. but now PF will be deducted to around Rs.1600/-. My question is who should contribute it, employer or employee, from his salary.

Thus same needs to be deducted from my current CTC or the employer has to make provision for the same. by adding that amount to CTC. I am confused because my take away is reduced. kindly note no pf was deducted earlier and now it will. Kindly help me urgently as i have to discuss with my HR ahead on this

From India, Mumbai
Asst.manager -hr
Adoni Suguresh
Sr.executive (per & Adm)
Assistant Engineer, Indian Telephone Industries,
+1 Other


1.Earlier your basic was below 6500 then contribution is mandatory.
2. Now from 1 st of September according to new pf slab below 15000 basic is mandatory.
3. If your saying about CTC includes employee and employer contribution so that will effect to your net salary.

From India, Mumbai
Hi Ravi,
Thanks for the early reply, earlier my basic was more than 6500 so no pf was deducted but now as slab has been increased our hr is telling that they will deduct the pf amount from my salary i.e. ctc so my in hand will reduce can u suggest any ways where my in hand does not reduce and provision where employer has to make contribution separately

From India, Mumbai

Dear Kushalvj,
If the PF contribution is 1600/- both employee and employer has to remit 1600/- each. Hence there is no need for anxiety as your payment will get doubled with interest(due to equal contribution from employer).

From India, Bangalore
So 1600 will be deducted from my current ctc and 1600 will be added from employer right?
From India, Mumbai
CS V Periwal

Yes, your contribution amount will be deducted from your take away and employers contribution will be paid by company.
But still because employers contribution to PF also form part of CTC, thus where employment is on the basis of CTC, takeaway is reduced accordingly by certain employers for additional PF costs.
You need to check the same from your employer whether CTC has been revised or takeaway has been revised.

From India, Gwalior
Adoni Suguresh

Hi Kushal V.J

The Employees Provident Fund Scheme is introduced in 1952 and subsequent there was amendments in the scheme. I am not under standing why you are worried about your PF deductions. You must be happy that a certain amount is being deducted from your salary and the equal amount will be contributed by your employer and thus total amount is being credited to your PF account which is a Saving for you for your future and this have the exemption under 80 C of Income Tax Act, 1961.

My sincere advice is you that do not worry about the PF deduction. You happily contribute as per the scheme. Your home taking salary may less as on today may effect but your asset will grow which will help you after your retirement. Do not think of today Your contribution will be in your name with EPFO and nobody will snatch this. You will get your contribution amount any time by applying form No.19 in case you change the company or you can continue till your retirement. There is a provision to take the advance from your Provident Fund under 16 for your marriage, sister marriage, housing loan repayment, in case of hospitalization etc. . You know that the Government employees are contributing their contribution under GPF which does not have aNY contribution from the Government. THEY WILL GET THEIR OWN CONTRIBUTION WITH THE INTEREST Why the government employees are preferring this scheme because of saving point of view and exemption of tax.

Myself and many contribution members are clearly explained in this thread and go through the same. DO NOT SKIP FROM THE CONTRIBUTION.

Adoni Suguresh

Sr.Executive (Pers, Admin & Ind.Rels) Rtd

Labour Laws Consultant

From India, Bidar

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