Understanding Employer PF Contributions: Where Does the Money Really Go?

Hi friends,

Please let me know the details of the process of salary breakup. According to the law, a minimum of 12% of PF should be contributed by the employer as well as the employee. In the payslip, only the 12% deduction from the employee is reflected.

a) Where will the employer contribution go?
b) How much percentage should be deposited in the PF account of an employee?
c) Whether the total of 12% employee contribution and 12% employer contribution, which is 24%, should be deposited in the PF account?

Kindly help me with this.

Thanks in Advance.

Regards,
ArunStalin.K
arunstalin@gmail.com

Please refer to the attached PF calculator for clarification, which was posted earlier by some member.

Thanks,

Dear Sir,

I am from Mumbai. I was working with a small recruitment firm. Around 12 of us have left the company together (8 months back).

We all have submitted the PF form to our ex-employer and we have been following up with them for the last 7 months, but they are not responding to us. Sometimes they say they are busy, sometimes they ask us to call after some time, and sometimes they claim to have submitted the form. However, when we checked with the PF office, we found out that they have not yet submitted our PF form.

We have sent around 18 to 20 emails to them, but until today, there has been no reply. Now, after 8 months, they are saying that we all did not serve the notice period, which is why they are not going to submit our PF form.

At the time when we left the company, for the last 6 months, we were not receiving our salaries properly. We had to constantly persuade them to pay us our salaries, which led to all of us leaving. Moreover, at that time, none of them mentioned that we had to serve a notice period.

The situation at the company was so dire that nobody was asked to serve the notice period. In fact, our 15 days' salary, mobile reimbursement, and traveling allowance are also pending with them. However, they insist that we either serve the notice period or pay them one month's salary before they submit the PF form.

Our concerns are:
- Why are they bringing up the notice period issue after 8 months?
- Can the notice period be a valid reason for not submitting the PF form?
- Can we take any action?
- Can we submit our PF form on our own?
- Who is correct in this situation?

Kindly reply so that we can proceed to the next step.

Regards, Neha