Can My Employer Deduct PF Without My Consent? Seeking Advice on Opting Out in Mumbai

Hi,

My workplace is in Mumbai. Recently, I received a salary increment, and now my company has started deducting PF from my salary. Previously, they only deducted professional tax from my salary. Now, they are deducting Rs. 1000/- for my contribution and an additional Rs. 1000/- for the employer's contribution, making it a total deduction of Rs. 2000/- towards PF from my salary. I am curious to know if they can do this. Also, if I do not wish to have PF deductions, can I request them to close my PF account?

Thanks in advance.

Regards,
Satadru

Hi,

You have not mentioned your basic salary. In your case, it appears you are drawing more than 6500/-, and hence, without your consent, they cannot deduct PF as per the act.

Regards,
Hiren Chheda
9821078457

Employers should not deduct their own share of PF contribution from employees' salaries. The deduction of Rs 1000 does not have a specific significance because PF contributions are calculated as a percentage, not a fixed amount. Specifically, 12% of the salary (basic + DA) is the contribution to be deducted from the salary. Have you calculated how this Rs 1000 figure is derived? If your qualifying salary is Rs 8333, then a contribution of Rs 1000 is accurate. However, the employer's contribution should not be deducted from your salary. You have the right to question this deduction, and if it is not addressed, you can escalate the matter to the Employees Provident Fund Authorities.

Regards, Madhu.T.K

I agree with Mr. Madhu. By virtue of paragraph 29 of the EPF scheme, 1952, an employee has to pay a contribution equal to the contribution payable by the employer. It clearly means that the employer has to pay their contribution first, and hence the question of getting the employer's contribution from the employee's salary does not arise; it is barred by law. You have to protest this if you are not receiving the salary in the package.

Regards,
KIRAN KALE

Hi Mr. Satadru,

I guess your company was not registered under EPF before. It may be the case where they used to pay you Rs. X as gross salary, and now they have restructured your Gross Salary to CTC, as the employer also has to contribute the same amount as you contribute. This is what I can assume by looking at your case. If this is not the case, you can ask for clarification. The employer cannot deduct their contribution from the employee's salary. However, the employer's contribution to PF is included in CTC.

Thanks and Regards.

My salary was earlier Rs 5000, and then after 1 year, it was raised to Rs 6000. Employers used to deduct PT 175, but they never paid it to the employer. Now I have left the job, giving 1 week's notice (Notice period for my company was 1 month). I was working with them until July 14. Now they are not paying my June + July half salary. Please advise on what to do.