Why Is PF Deducted from Salary? Understanding Employee and Employer Contributions

Dear friends, please find the right answer regarding employees' share. Instead of deducting it from the salary, it would be better if only the employer's share is withdrawn later. Why are all these transactions made?

Dear Shyam,

It is the law of the land, and you cannot question the law of the land. Tomorrow, you will have to pay income tax. Can you explain why courts award death sentences for murder? Please refrain from asking such questions.

Dear Shyam,

PF was created to provide financial security to employees after their retirement, so that one can live a life with dignity and respect even after retirement. It's a statute for employers and employees to contribute to the PF; however, you can also withdraw it before retirement. This provision was made to meet urgent financial needs; however, it totally depends on you how to use it.

By the way, law is not just law; it's a controlling regulation for the betterment of society and its members, and each law has an explanation.

Regards,
Rahul Chhabra

It is a Social Security measure that can help the employee after employment. We can't question the act. Every act is meant for the protection, benefit, and security of an employee.

I am sorry to say that we can't question in this manner.

Prasad

Well, we all ask questions as we are inquisitive, and I suppose this forum is meant for the same. Please help people grow in terms of their knowledge and skills rather than policing their questioning skills or inquisitiveness. I have seen it happening many times that we are asking people to stop asking questions that make no sense to us. Please stop doing so as it curbs one's interest in this forum. In case we find any question irrelevant, we can move on and not reply to the same.

Regards, Rahul Chhabra

The answer for why provident fund contribution from employees lies in the word 'provident'. The meaning of the word is: provident [ˈprɒvɪdənt] adj 1. providing for future needs 2. exercising foresight in the management of one's affairs or resources 3. characterized by or proceeding from foresight [from Latin prōvidens foreseeing, from prōvidēre to provide] Thus, it is for the future of the employee. He has to help himself so that others (employer) help him. Even God helps only those who help themselves!

Secondly, savings is an important aspect of the national economy. From that point of view, the employee should make the contribution.

Dear friends,

Thanks for your valuable replies. I don't think it's an irrelevant question because people need to know what they are being paid for and how they can utilize it. It is the responsibility of salaried individuals to understand the details of their salary. If this information were irrelevant, why would the interview panel of a top reputable company inquire about it?

Please write your thoughts on this.