Re: Pf Contribution - Employee Salary

HELLO MEMBERS
PF CONTRIBUTION
can any employers deducate the employee and employer contribution from employee salary? and its legal??
Thanks

Hi,
1. Employee contribution is part of salary and employer contribution is part of CTC. from employee's gross salary employer contribution should not be deduct, that practice is illegal.

Nowadays most of the companies talk about CTC (Cost to Company) Salary and hire, hence any cost pertaining to the employee whether statutory or otherwise is included in CTC. It is advisable to negotiate salary on Take home basis

Employee PF Contribution can be duducted, but not employer PF contribution from monthly salary....but some employers may include their pf contribution to the yearly CTC....check ur appointment.

ABHAY_011 -
Regarding PF contributin, you have stated that it is purely discretion on Employer. Not at all. Employee share by employee and Employer\'s share by employee and remittance goes together to EPFO and not otherwise. Rgds
attribution https://www.citehr.com/503861-pf-contribution-employee-salary.html#ixzz3BXqJemtA

legally it is managment's liability and it is mandatory on the part of the management/employer to contribute the employers share. The amount may be shown in CTC.Some unfair employer(I wont say unscrupulous) deduct employers share from the employee. It is illegal ,unfair and violation of the PF Act.

PF is the social welfare scheme for employees.Its has three components.1) Employee's contribution 2)Employer's Contribution 3)Interest earned/applicable.All these components are for the employees secured future.So employer has all the obligation to pay his contribution and ensure the PF is deposited timely and accurately.