Can Employers Legally Deduct Both Employee and Employer PF Contributions from Salaries?

PF Contribution

Can any employers deduct the employee and employer contributions from the employee's salary? Is it legal?

Thanks
Regards

Employee contribution is part of the salary, and employer contribution is part of CTC. From the employee's gross salary, the employer contribution should not be deducted; that practice is illegal.

Nowadays, most companies talk about CTC (Cost to Company) salary and hire. Hence, any costs pertaining to the employee, whether statutory or otherwise, are included in CTC. It is advisable to negotiate salary on a take-home basis.

Employee PF contribution can be deducted, but not the employer PF contribution from the monthly salary. However, some employers may include their PF contribution in the yearly CTC. Please check your appointment.

Regarding PF contribution, you have stated that it is purely at the discretion of the employer. This is not entirely accurate. The employee's share is contributed by the employee, and the employer's share is also contributed by the employee, and both amounts are remitted together to the EPFO.

Reference: https://www.citehr.com/503861-pf-con...#ixzz3BXqJemtA

Regards

Legally, it is the management's liability, and it is mandatory for the management/employer to contribute the employer's share. The amount may be shown in CTC. Some unfair employers (I won't say unscrupulous) deduct the employer's share from the employee. It is illegal, unfair, and a violation of the PF Act.

PF Contribution Components

PF is a social welfare scheme for employees. It has three components:

1. Employee's contribution
2. Employer's contribution
3. Interest earned/applicable

All these components are for the employees' secured future. Therefore, the employer has the obligation to pay their contribution and ensure the PF is deposited timely and accurately.