Provident Fund Issue - Salary Increment

satadrus
Hi,
My workplace is in Mumbai, recently I got salary increment and my company has started deducting PF from my salary. Earlier they only used to deduct professional tax from my salary.
Now they are not only deducting Rs.1000/- for my contribution they are also deducting Rs.1000/- from my salary for Employers contribution as well. So in total they are deducting Rs. 2000/- for both employees and employers contribution toward PF from my salary. I just wanted to know whether they can do this also if i don't want them to cut PF from my salary can I tell them to close my PF account.
Thanks In Advance
Regards
Satadru
hiren chheda
Hi
You Have Not Mentioned Your Basic Salary In ?
In Your Case It Appears U Are Draing More Than 6500/- And Hence Without Your Concernt They Cannot Deduct Pf As Per The Act,
Regards
Hiren Chheda
9821078457
Madhu.T.K
Employer should not deduct his own share of PF contribution from the salary.
Deduction of Rs 1000 has no particular significance because PF is not a lumpsum amount but it is a percentage. That is 12% of the salary (basic + DA) is the contribution to be deducted from salary. Have you worked out how this Rs 1000 comes? If your qualifying salary is Rs 8333, then contribution of Rs 1000 is correct, but the employer's contribution should not again be deducted from your salary. You can question it and if not attended, you can very well represent the matter before the Employees Provident Fund Authorities.
Regards,
Madhu.T.K
suyoglabourconsultants
Satadru,
i agree with Mr. Madhu, by virtue of para 29 of the EPF scheme, 1952 employee has to pay contribution equal to the contribution payable by the employer, it clearly meant that employer has to pay his contribution first and hence question doesn't arise to get employer's contribution from the employee's salary, it is barred by law. u have to protest this if u r not getting salary in package.
Reagards,
KIRAN KALE
SK SINGH
Hi Mr. Satadru,
I guess your company was not registered under EPF before. It may be the case wherein they used to you pay Rs. X as gross salary and now they have restructured your Gross Salary to CTC as employer also has to contribute the same contribution as you contribute. This is what I can assume by looking at your case. If this is not the case, you ask for clarification, employer cannot deduct their contribution from employee's salary. But employer's contribution to PF is included in CTC.
Thanks and Regards
Suneha Amin
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 employer. Now I have left the job giving 1 week notice (Notice period for my company was 1 month). I was working with them till July 14. Now they are not paying my June + July half salary. Please advise what to do.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute