Confused About PF Contributions: Why Is My Employer Deducting More Than Me?

Hi, actually I have a confusion. The first thing is whether employee and employer PF contributions should be the same or if they can be different. My company is deducting more employer PF contribution compared to employee PF.

Another issue is that whatever deduction is shown on my salary slip is not reflecting the same in my EPF passbook; it is less. Could anyone please help me with this?

Hi,

Employees' complete 12% deduction goes to the PF account, whereas employers' 12% contribution is shared into two parts, i.e., 3.67% in the PF account and 8.33% in the EPS account, i.e., pension. The pension amount is not shown in your EPF passbook. Once you have registered your UAN in the EPFO portal, you can download a complete statement along with the pension amount and also view your complete PF balance till date.

I think it would be better if you share the salary slip and what the PF account says. Then we can figure out what the actual issue is. Your question is correct, as what is deducted should show in the account, and more actually, unless you are comparing with CTC and not the gross shown in the salary slip.

Dear Employee,

The employee contribution is 12% of the basic salary, which goes into your PF account. The employer's contribution is also 12% of your basic salary, but out of that amount, 8.33% goes to the pension fund (EPS) and 3.67% goes to the PF. If you have any other queries, please provide details.

Thank you everyone for your valuable reply. I am providing you with the details of how they explain the deduction. Please have a look and let me know if it is legal or not.

Details of Deduction:

For 160 Hours calculation for July (Basic is 13,846):
- 144.23 * 160 = Actual Gross 23,077
- Gratuity Deduction: 666
- PF Employer: 1,850
- PF: 1,662
- PT: 200
- Total: 18,699/-

In the PF account, 1,662 is shown by both employee and employer. I mean 1,662 + 1,662 * 3.67% and 1,662 * 8.33% in the pension fund. My concern is why they are deducting the employer PF more than the employee PF.