Employee Provident Fund [Thread 29592]

Is it right if a company deducts the employee and employer contribution of Provident fund from the employee's salary during the probation period?Is there any law that disputes this?

Hi Nina..
As per law both the employer and employees have to contribute same 12% in the provident fund.. If any employer is doing so that he is deducting the whole PF contribution from an employee's salary then it is against the Act, and he can apply against the same in the PF Appellate Tribunal.
Regards,
Amit Seth.

Hi Amit,
Here the question put by Nina is if company deducts PF of the employee during his/her probation period...then is it right....?
Nina, as per my knowledge is concerned...PF deduction starts with PF registration provided all conditions are fulfilled....it has nothing to do with probation period.....
Correct me if i m wrong...
Rgds,
Chaitali

HI Nina,
EPF is a social security measure which helps employee for his future. But there is no provision regarding the contributions of EPF during probation period. To me contribution during the probation period is necessary.
Regards,
Mohan

Hi Chaitali,
Actually you have taken it in a wrong way..
Nina is asking that employer is deducting whole 24% PF contribution from the employee side, which is illegal and against the Act.
Yes you are very true that contribution starts from probation period too.. that is legal even.. there is no issue in that..
Regards,
Amit Seth.

Hi,
I want to confirm whether its specifically stated in the act that Provident Fund deduction and contribution is applicable to probationers / trainees.
And what is the general industrial policy regarding PF for probationers / trainees?
Some one help me out on this please....

Hi..
Yes its applicable to probationers/Trainees only if they are salary based..
If they are on stipend then its not applicable..
Regards,
Amit Seth.

Hi,
PF is deducted from 1st day an employee joins the organisation except the Apprentice. There are a lot of organisation which negotiates salary on CTC ( Cost to the Company) basis in which case the intention is to inflate the figures and therein both the contribution are reflected. Hence if the same has been done there is nothing wrong. If otherwise, then it must be brought to the Management notice.
Regards
Subrato

Hi Nina
I'll divide yr query in to two parts,
(one) deduction of employees share is legal?
Yes, according to EPF Act employer has to deduct EMPLOYEE'S share from pay.
(Second) Can employer deduct employer's contribution from pay?
No, employer cannot deduct EMPLOYER'S CONTRIBUTION from pay whether employee is on probation or Temp. basis or Permanant. It is the violation of the Act. Pl refer Section 31 of EPF Scheme 1952
Hope this will be clear your confusion
Regrds,
H. R. Shah

One person here has stated that, if your employment letter's shows certain salary amount as CTC(cost to company) in that case an employer can deduct his share of PF from the CTC, is that true?