How Can I Avoid PF Deductions Without Losing My Gratuity? Seeking Advice!

My salary is 25,000/-, and I don't want my PF to be deducted because both parts deduct from my salary. Now the HR department is saying your PF will be deducted as once PF deduction starts, it will deduct in the future whatever might be the salary.

When I joined, my salary was 9,000/-, but now it's 25,000/-. Now my query is, "Is there a way out so that I can escape from PF deduction and get my full salary in my account instead of no PF deduction?" Because I don't want to resign and get my salary in cash, as my gratuity is due almost after 6 months, and if I resign, they won't give my gratuity.

Hence, give me your valuable advice.

The Importance of PF and Addressing Misconceptions

It is due to sheer ignorance that you are saying you do not want PF. PF is a good investment; it provides you with a pension after retirement. Moreover, it will give you an insurance cover, and therefore, if something happens to you while in service, your dependents get an amount from EDLI. Obviously, the dependents will also get a pension. No other investment can give you this protection, I would say. Therefore, I don't think that any person in this forum will advise you on how to get out of PF.

Employer Contribution and Salary Deductions

One thing, if your company's operation style is such that 24% of the PF is deducted from your own salary, then that can be questioned. When the employee's share of the contribution is only 12% of the salary, the act of the employer deducting the employer's share also from you cannot be encouraged. But I would feel that they are not doing so, but they are showing their contribution as a cost to the company. Please check.

PF Deduction on Salary

One more thing, if your salary is Rs. 25,000, the entire amount need not be subjected to PF deduction, but you can ask HR to deduct 12% of Rs. 15,000 only.