Sogemar
Ir Manager
CAPankaj Jain
Chartered Accountant
+1 Other

Thread Started by #CAPankaj Jain

Hello,

I was working in LIC Housing Finance Limited for the period 19.03.2012 to 14.09.2016. At the time of joining i had inquired about my CTC part and LIC HFL HR Department communicated about my Annual CTC and in CTC part clearly mentioned about employer contribution towards Provident part.

And on every Month salary PF is deducted and the equal amount also contributed by LIC Housing Finance Limited towards employer contribution

After 4 Year 6 Month working when I was relived from LIC Housing Finance Limited and at the time of full and final settlement of provident fund amount i had received only my Contribution toward provided fund and in this amount LIC PF Trust not given me interest portion of the my probation period contribution i.e. from 01.04.2012 to 31.03.2013.

And when i inquired about this to LIC PF Trust i received reply from trust is like this

As per Rule 20 (b) of PF Rules Employers contribution and interest there on shall stand forfeited as employee has not completed five years of service from date of joining. Also, as per Rule 14 of PF Rules only confirmed employees should contribute to the Fund. Hence, Employees and employers contribution which was received from joining date to confirm date is refunded to LIC Housing Finance limited on 06.10.2016

In simply i just want to know whether any PF Trust make rule to forfeited employers contribution and its interest part for not serving 5 years in one organization. It is not against employee carrier growth
21st December 2016 From India, Jalalpur
PF Trust rules appears to be illegal and unconstitutional. The EPF Act and EPF Rules prevails over the LICHF Trust rules. If the employer has deducted your EPF from the date of joining, he is liable to pay with interest and you are entitled to receive the fill amount. He has no right to forfeit your EPF. you may write to the Regional Commissioner EPFO of your area and also claim compensation through the Labour office by filing a complaint against your previous employer and also through consumer forum.
21st December 2016 From India, Mumbai
Yes . LIC PF Trust can make law. However if yr CTC covers PF of employer and there is no adverse clause in yr letter relating to PF like 5 years clause, you can claim all incusive of interest. For that you may go to court.
21st December 2016 From India, Ahmedabad
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