Can There Be Two PF Deductions but Only One Shows on My Salary Slip? Let's Discuss!

Hi guys,

Just wanted to check, can there be two deductions of PF from your salary, but only one is shown on your salary slip? In my salary slip, there is only one deduction.

Hi guys,

I just wanted to check, can there be two deductions of PF in your salary with only one being shown? My salary slip shows only one deduction, but my HR says there are always two deductions of the same amount, and only one reflects in our salary slip.

Dear friend,

You mean the two deductions as employee and employer contributions to PF? If so, the employee contribution will only be shown in your salary slip. The employer contribution is not deducted from your salary as it is contributed by the employer.

Abbas.P.S

Hello,

He is right because the employer's contribution to PF is never shown on the salary slip or payslip. You can check the employer's contribution to PF in your PF member account via the UAN portal or Member Portal.

Regards,

Dolly Batavia

Dear Sumit, You have not mentioned the amount of the two PF deductions in your payslips. There are three main components (from the employer's point of view) in PF deduction and deposit: (1) Employee EPF Contribution (12%), (2) Employer EPF Contribution (12%), and (3) EPF Admin Charges (EDLI, Admin, etc. - 1.36%).

When the employer deposits the EPF, all the above amounts are deposited under different heads. Some companies also deduct the third type of deductions from the employee's salary (which should be deposited by the employer from their pocket). In some cases, it is noticed that ADMIN CHARGES are also deducted from the employee's salary.

If this is the case, as I am assuming, you can ask your employer not to do so. Being covered under EPFO, it is the responsibility of the employer to deposit the admin charges from the company account.

If you need more clarification, please share your salary figures and the amount of double deductions. The forum members will try their best to clarify the same.

Dear Sumeet,

Nowadays, companies are deducting PF from your CTC/Package. The employee contribution and the employer contribution together form your package. The employer does not pay/contribute from their side. This is deducted from your salary; there will be two deductions, with only one - your deduction - mentioned in your salary slip. Companies are now using this tool, as this was not the case earlier.

Regards,
Shashank Sheode

Dear Shashank Sheode,

CTC means Cost To Company. Therefore, employer contributions are paid by the company/employer itself. If you believe that it is being deducted from employee salaries, you may approach the EPF Enforcement Officer, Labour Department, etc., as it is a statutory obligation to remit employer contributions to EPF.

Abbas. P. S

Hi,

Thank you for the answers. As Pan Singh Ji, you asked for the breakdown:

Basic: 14741
HRA: 8844
SPL ALL: 5896
CONV ALLOW: 5000

Deductions:
PF: 1769
IT: 749
TRANSPORT DEDUCTION: 750

CTC: 450000

Hi, thank you for your answers. As Pan Singh Ji requested, here is the breakdown:

Basic: 176887
HRA: 106132
Special Allowance: 70755
Conveyance: 60000
Medical: 15000
PF: 21226
CTC: 450000

Two amounts of Rs 1769 are deducted. One is shown in the salary slip, while the other one is not displayed.

As per the figures given above, the extra deduction of Rs. 1769 seems to be okay, as the employer contribution of Rs. 1769 is part of your CTC. One deduction is made for your contribution, and another is made to match your CTC. Now, the considerable point is on what negotiation you were appointed. You can ask your HR department to submit your CTC in phases as below:

Monthly:
1. Basic
2. HRA
3. Conveyance
4. Special Pay
5. Medical Allowance
Total

Reimbursement:
6. LTA

Retirement Benefits:
7. PF (12%)
8. Gratuity

Fixed Cost to Company

Moreover, your Income Tax also seems to be a little bit on the higher side. According to my calculation, your Income Tax should be:

(A) Total CTC = 450000

(B) Less: Various deductions/benefits, etc.
1. Tax-Free Limit = 250000
2. Conveyance = 19200
3. Medical Allowance = 15000
4. Deductions 80C = 150000 (you have to submit proof of saving under this head)
Total Deductions (B) = 434000
Taxable Income (C) (A-B) = 16000 (Tax @ 10% = 1600 for the whole year)

In addition to the above, you can save under HRA, which depends on your residence status (consult with your HR/Payroll).

Please review and let me know if you need any further clarification.

Thank you.
Regards