I am a foreign teacher working in an international school in India. My employer is apparently deducting not only my 12% PF payment from my salary but also their 12% contribution. Is this legal?
No, he can't deduct his contribution from employees' salary. But before deciding further, please check whether they are deducting employer contribution from your monthly payslip. If they are deducting employer contribution from your payslip, then it's illegal. However, if they have considered the employer contribution in the CTC (Cost to Company), then it's legal.
So, can a company make the employee pay the company's share of PF contribution simply by saying it is a Cost To The Company? How is that a social security compact between employees and employers?
Deduction of an employer's contribution from the Gross Salary of an employee is illegal. CTC is a notional concept, just used to determine the total cost of an employee to the company and may include a host of things. It does not fall under the definition of "wages."
Your employer can only deduct the employee's share from the salary at a rate of 12%, but not more than that. If you believe there has been an incorrect deduction, you can file a complaint with the Labour Office in your area. Make sure to include your salary slip when submitting the complaint. Additionally, review your appointment letter issued by the employer before proceeding with the complaint.
Thank you.
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