One of my friends gets a salary of Rs. 14,500 per month (in cash), but the company has not deducted PF. However, the company already has a PF code, and many employees have already benefited from the PF scheme. What should an employee do if the company has not deducted the PF amount? The company stated that they cannot deduct the PF amount and otherwise the employee should leave the company.
From India, Patna
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From India, Patna
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Violation of the PF Act 1952
With a salary of Rs. 14,500/-, the non-deduction of PF is in violation of the PF Act 1952. Sooner or later, the non-compliance will come to light during a PF inspection or otherwise. The company will not only have to pay the contribution but also interest, penalty, and face prosecution proceedings. Perhaps the company is not showing the expenses under the salary head, hoping to evade the statutory liability by being confident of not getting caught. However, it is this overconfidence that will prove to be their undoing. This doesn't seem to be an isolated instance; it may be a regular practice they continue until they are caught.
From India, Mumbai
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1593With a salary of Rs. 14,500/-, the non-deduction of PF is in violation of the PF Act 1952. Sooner or later, the non-compliance will come to light during a PF inspection or otherwise. The company will not only have to pay the contribution but also interest, penalty, and face prosecution proceedings. Perhaps the company is not showing the expenses under the salary head, hoping to evade the statutory liability by being confident of not getting caught. However, it is this overconfidence that will prove to be their undoing. This doesn't seem to be an isolated instance; it may be a regular practice they continue until they are caught.
From India, Mumbai
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PF Judgement - Bom HC - Temp employee.doc
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