I joined a company last month, which has 154 emp but it doesn't have policy for PF. Neither they deduct pf amount nor they contribute. Also, they hold 20% of the salary per month, which they call pli and pay it back at the end of year.
So I want to know;
#-) If company is in the violation of law for PF?
#-) Can company deduct 20 % every month and keep it with them as it is and pay in last month?
#-) Previous company was depositing PF so can I keep my PF account ideal for the time I'm in this company & start using it again in future.

From India, New Delhi

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hi hardeep,
-If company is in the violation of law for PF?
This is clearly violation of rules, plz check the area applicability. And for same you can raise the compliant online also.
Can company deduct 20 % every month and keep it with them as it is and pay in last month?
No cannot deduct and keep it. Anyway plz check your CTC breakup. What is PLI?
yes you can keep that account ideal for 3 years and later also. upto 3 years you get interest on that.


The company is certainly in violation of PF rules. Unless each of the 150 employees joined at a salary of above ₹15000 and did not have a PF account at the time of joining. Which I don't think is possible.
You can keep your PF account alive for as long as you wish. The account will earn interest for 3 years, then it will go dormant, but the money and accumulated interest till then is protected. When you join a new Comoany later you need to give your UAN and they will contribute to the same account.
I assume PLI is performance linked incentive.
Deducting 20% from gross salary is a violation of payment of wages act, even if they are paying it back later. I assume that PLI means it is not always paid back unless the person performed well and kept the boss happy. However, if they are considering this a part of CTC but not actually showing it as a part of gross salary, then yes, it would be allowed.
So you need to give us some more details

From India, Mumbai
An employer having employment strength of more than 150 is clearly violating the provisions of Employees Provident Fund & Misc. Provisions Act 1952 and can be make liable for coverage with retrospective effect. The matter should be brought into the notice of the area enforcement officer or regional provident fund commissioner either online or through a written complaint.
Retaining wage / salary @ 20% of earning is also a violation of payment of wages act and no employer can retain your wage. The matter is required to be brought in the notice of area labour inspector.
P K Sharma

From India, Delhi
Both factors of PF as well as 20% deduction of wages seems to be illegal apparently. Learned members of this forum has already advised. Please follow accordingly.
From India, Kolkata
In your case, it is clear that this company is violating the laws of the state as it cannot retain any part of a employees salary and PF is compulsory if the employees are more than 20. (now it will be 10).
From India, Mumbai
Plz Contact nearest pf office/enforcement officer or mail them (http://search.epfoservices.org:81/locate_office/office_location.php)
From India , Vapi
Even if in offer letter 20% of CTC is defined as PLI, the company can’t deduct, it can pay lesser gross salary to that effect.
From India, Mumbai
Dear Hardeep, if company employees heacount is 20 then pf deduction is compulsory
From India, Mumbai
Is there exemption to exempt PF benefit, in an istitution, if all employees start at salary above Rs 15000? Request clarification .
From India, Chennai

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