Employer Wants Back the PF Contribution: How Should I Handle This Situation?

Dear Forum,

Please guide me about this. An employer is asking to return the PF money which a company contributed. Please help me in this case.

Thanks & Regards,
Sagar

Dear Sir,

Please help me with this as my employer is asking me to refund PF contributions made by the company. PF was deducted for approximately 8-9 months. Is it ethical for them to ask for a refund of PF contributions? If so, on what basis?

Furthermore, they are requesting the refund in cash. Please suggest what course of action I should take.

Your urgent assistance is greatly appreciated.

I await your kind help as soon as possible.

Why are they asking for a refund of the PF that was deposited?

Dear Jiswal,

Please explain whether you are still in service of the company. To whom have you remitted PF contributions? Is it to the EPFO account? Have you applied for the withdrawal of EPF contributions? PF contribution comprises of employee share and employer share. You have been asked to refund which share and why? Please elaborate on your query.

Please note that you are not supposed to refund money to the employer. Is it towards the recovery of some other dues from you to the company?

Thank you for your opinion in this regard. I'm still in service with the company. PF is remitted from the government department EPFO account only, but the contribution is from both of us—employer and employee, which is usual. I applied for PF due to the slab increase, and it does not fit in the PF slab.

Now the employer is asking to refund his share, i.e., the employer's share, as they have contributed it. Not a single rupee was taken from the company as a loan or advance, so there is no matter of any kind of recovery. I hope the picture is clear to you, and I am expecting your proper guidance on the same ASAP.

Dear Saagar,

What I understand is that you are still in the organization, but your existing PF Gross (Basic, DA) has been increased to Rs. 15k+ due to your salary increase. You are covered under PF, and your organization discontinues your PF after your Basic & DA have been increased beyond Rs. 15k. This is absolutely illegal. Once you are covered under PF, even if your Basic & DA increase beyond Rs. 15k, you will still continue under EPFO, and your employer is bound to pay the employer's contribution up to Rs. 15k. Probably you have been advised to withdraw your PF; that is why this situation has arisen.

Regarding your query to refund the employer's contribution to the company—it is your legally earned money, and the question does not arise to refund it.

Thanks & Regards,

S. K. Bandyopadhyay (West Bengal) USD HR Solutions
[Email Removed For Privacy Reasons]

Dear Mr. Jaiswal,

As indicated by Mr. S. K. Bandyopadhyay, you should continue to be a member of EPF, and contributions should be remitted up to the ceiling, i.e., Rs15,000/-.

Your employer has mistakenly marked you as having left the service, whereas you are still employed. Additionally, you have submitted a withdrawal request. Please inform your employer of this information. There is no question of refunding the employer's share of EPF as it is not applicable.

Thank you.