Is My Employer's PF Deduction from My Salary Legal? Seeking Advice on Next Steps

Currently, my company is deducting their PF contribution of Rs. 780/- from my gross salary, out of which only Rs. 240/- is being deposited into the PF account, while the rest is going into the pension fund. My company is deducting their contribution from my salary, which is not legal as per PF Section 31. Please correct me if I am wrong. I want to know if this practice is legal. If not, what actions can I take?

Earnings Details
- Basic: Rs. 6,500.00
- HRA: Rs. 650.00
- CCA: Rs. 540.00
- Conv. Allowance: Rs. 530.00

Deductions Details
- Provident Fund: Rs. 780.00
- Professional Tax: Rs. 80.00

**Total Payment: Rs. 8,220.00
Less Deductions: Rs. 860.00
Net Pay Salary: Rs. 7,360.00**

Total Earnings: Rs. 8,220.00
Total Deduction: Rs. 860.00
Total Payable: Rs. 7,360.00

Please advise me on the same.
Regards.

As per your post, I didn't find any unethical practice being carried out in your organization. PF is always deducted from the employee's Gross Salary. At the same time, there is another contribution that has been paid by the employer, which they might have conveyed to you in your CTC or appointment letter.

Regards,
Janardan

As mentioned by Janardan, the PF contribution is 12% of the basic salary, which in your case amounts to 780 and needs to be deducted from your salary. Your employer will then contribute an equal amount, i.e., 780, to your PF account.

Therefore, the total credit in your PF and Pension account for this month will be around 1560. Rest assured, there is no unethical practice involved in this process.

Regards,
Mitesh