Confused About My PF and ESI Deductions: How Can I Ensure My Contributions Are Properly Managed?

I have been working in a private (PVT) company for the past 7 months and receiving payment on a Cost to Company (CTC) basis. They are deducting my Provident Fund (PF) and Employee State Insurance (ESI) contributions every month. For the past week, they have been requesting details from me to register my name in ESI. Upon checking, I discovered that my PF account balance is only Rs. 377.00, last updated on 31.03.2016. I am unsure of what has been done with my PF and ESI deductions from previous months.

If I inquire, the management's response is that these are the company's rules, and as I am receiving the expected salary, there should be no issue. They suggested taking legal action if necessary.

Questions Regarding PF and ESI Deductions

Now, I have the following questions:

1. What is the legal procedure to address this situation?
2. Should I request reimbursement of the deducted money?
3. How can I confirm if the company is registered with PF and ESI?

Kindly reply as soon as possible. Thank you.

Identity Card and Verification of Deductions

1. As per the provisions of the ESI Act, 1948, and the rules/regulations framed thereunder, an employee is issued an Identity Card. Please confirm whether you have been provided with such an Identity Card along with the ESIC Family Identity Card by your employer or the said department.

2. You can keep copies of your pay slips for the past months in which your deductions under EPF & ESI laws are shown as deducted. Based on that, you can visit the nearest offices of the said departments to confirm whether the amounts deducted as contributions from your wages have actually been paid by your employer into relevant accounts or not. If not, you can file a complaint with the concerned department.

3. I understand that there cannot be any so-called "management rules" in violation of any labor laws, including the above Acts.

Regards

You can contact your HR department regarding these queries. Clearly explain your concerns and ask questions about them; they are obligated to provide answers. You can also request a Temporary ID card (TIC) with the date of joining mentioned (as per the ESIC Act) to understand when your deductions began. Additionally, you can inquire about your UAN number. Initiate communication with the HR department to assert your rights. Failure to comply with labor laws may result in consequences for them.

Before taking any legal route or making any quick decisions, I would like to request you to consider the following:

1. Check your payslips to verify if your PF and ESI amounts are being deducted on a monthly basis. If yes, since when? Your PF number will be mentioned on your payslips.

2. Review your Offer Letter/Appointment Letter - is there any mention of PF and ESI benefits being provided upon completion of your probation period?

3. Approach your HR personnel and inquire about your concerns. I believe they will provide you with a detailed explanation. Every employee has the right to receive information about all deductions. Therefore, do not hesitate to discuss this with them.

If you are unable to obtain the necessary information, then you may consider pursuing legal action.

Regards,
Ramu Kakitha

As suggested by other contributors and their advice, please consider the guidance provided by HR SGS. Here, you will encounter different types of opinions, some in favor and others possibly against your employer. Please check all the details either in ESI/TIC and EPFO - UAN. The date of joining mentioned will confirm the contributions deducted and deposited.

If you find that contributions are less deposited or the date of joining is different, politely ask your HR person if the contributions have not been deposited. Be prepared to switch or change the company if the deducted amount is not reimbursed as per your CTC. Many times, some employers take the coverage after six months or the completion of the probation period, which is wrong. However, if all the discussions are in your favor, meaning reimbursed, go ahead and enjoy your service.

Thanks