Talent Acquisition Expert
Korgaonkar K A
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Hr Generalist
+2 Others

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Dear friend,
I joined a company recently. They are deducting 780/-as PF contribution. But company is not depositing the same amount to any PF account & company is not giving any contribution also. So I told to management to stop the deduction. Then they are telling to deduct the same amount under any security deposit head from employee.
Can anyone suggest me, how & under which head, I will be able to deduct money from employees salary. But it should not be unfair to employee also.

From India, Bangalore
Abhipsa Sahoo: Deduction of PF and non deposit of the same is a crime (You might need an expert consultant to help navigate this issue).
Deduction of salary is based on legally permissible heads only - meals, etc and not on any arbitrary process/head or norm.

From India, Mumbai
Dear Abhipsa Sahoo,
Please note that deductions from wages are to be made in accordance with the provisions under the Payment of Wages Act. You are not authorized to make any deduction other than the deductions listed in section 7 (2) of the Act and subject to limit as mentioned in section 7 (3). Deduction other than the listed items / heads is unauthorized deduction.
Deduction towards security deposit is unauthorized deduction. What do you mean by security deposit?
Deduction towards PF without having code is also unauthorized deduction. Non depositing deducted PF in the code allotted to you with in the stipulated time is a serious offence under the criminal law.

From India, Mumbai
The employer has deducted PF contribution on PF wages as per old wage ceiling of Rs.6500/ and has not deposited which is offence.....
The deduction other than those defined in enactments applicable to establishment e.g. as explained above by expert members can't be made....
The conduct of employer is illegal and liable for punishment....
The HR personnel and payroll executive should declined to be part of this illegality...

From India, Chandigarh
If your company has more than 12 employees then it comes under the PF act. If your company is not deducting your PF then it is an offensive working of your company as per the government rules.
From India, Bhopal
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