Is It Fair for My Company to Deduct Both Employee and Employer PF Contributions from My Salary?

Company is deducting PF contribution of employee as well employer from my salary only. Is this right?

Company is deducting PF contributions from both the employee and employer from my salary only. Is this correct?

PF Contribution:
- 12% from Employee
- 12% from Employer

In addition, 0.85%, 0.50%, 0.01%, or $200, whichever is higher, from the Employer.

If the agreement is CTC basis with the employee, then the employer reduces the special allowance to the employer's part of contribution. Where CTC is not in force, the employer has to pay his own share of contribution.

Company mentioned deductions and allowances in the offer letter (Cash In Hand). Most of the time, the company deducts PF of both Ee and Er from the employee's salary. So you have to check your offer letter to know about these deductions.

The employer can deduct only the employee's share from his salary and remit it to the employee's PF account subject to the ceiling prescribed. Deducting the employer's share of 12% from the employee is contrary to the provisions of the act.

The reason why the employer includes it in the CTC component is to arrive at the cost incurred by the company in respect of the employee, and this can't be recovered from the employee.

Dear Friend,

You have not clarified whether you are covered under the CTC concept or if you are being paid a basic salary on a monthly basis. What are the terms of your appointment and what details are included in your salary slip? Without examining these facts, it is difficult to provide an accurate answer. Please share all these details.

For your information, CTC is not a legal concept.