Confused About PF and ESI Deductions? Who's Responsible When It's Not in Your Contract?

Dear All,

I require help regarding the deduction of PF and ESI in the case where the company did not mention anything about these deductions at the time of appointment. The company provided the appointment letter specifying the BASIC salary, HRA, Conveyance allowances, and CTC. In this scenario, is the employee solely responsible for all deductions from both sides?

I think Provident Fund (PF) of the employee is shown in the Cost to Company (CTC). The employer's share of PF is not shown in the CTC. However, the CTC includes both sides of the PF.

Srihari

Dear all,

I need clarification. If we take labor from the market for 1-2 days for our work, do we have to pay PF and ESI for those laborers as well? We need to pay them cash at the end of the day.

Regards, Gaurav

I need clarification. If we hire labor from the market for 1-2 days for our work, do we have to pay PF and ESI for those workers as well? We need to pay them in cash at the end of the day.

Thank you.

Pay the laborers using vouchers and not the wages register, so you are not expected to follow liabilities.

Hi Srivas,

In appointment order, the company will include the employer's contribution of PF at 12% (ESI, if applicable). Other amounts as per the act will be deducted only from the employees' salary.

Thank you.

Dear all,

I need clarification regarding PF. Is there any rule if the employer doesn't want to provide PF facility but has more than 20 employees in the company?

Please suggest.

Regards,
Sumiti

Hi, kindly, could anybody clear my doubt? Why is the company deducting both PF from the employee's side only, that is, the employer's contribution and employee's contribution as well? Is it fair for the employee or not? If yes, kindly let me know the valuable reason. I am working in a manufacturing industry where we are following all the rules of the central government. Kindly reply to my query. I am very grateful to you all.

Regards,
Dipika
B'lore

Hi Deepika,

Companies nowadays offer CTC, which stands for "cost to company." That's why all deductions are included. Therefore, you need to review the CTC breakup before joining, if possible.

Understanding PF Registration Requirements

Registration in P.F. does not depend on the employer's will; it is a law that everyone must follow.

Regards,
Shish Uniyal
Compliance Consultant
[Phone Number Removed For Privacy Reasons]

Our company deducts EPFO monthly contributions above Rs. 15,000 at 12% of the employee's salary.

Kindly inform me according to the EPFO Act if any employee's basic salary is Rs. 500,000 (fifty lakh per month) and the monthly PF deduction is 12% amounting to Rs. 60,000 (six lakh per month). Is this legal as per the EPFO Act?