Employer Deducting Both Components of EPF (Employee+Employer Share) from My Salary

Hello all,

EPF Contributions on Salary Slip

As per the salary slip, both the employee contribution and employer contribution of EPF are being deducted from my Gross Salary. My understanding was that only the employee's contribution would be deducted from my Gross and would show up on the salary slip, whereas the employer's contribution part wouldn't show on the salary slip. Is this practice by the employer violating the EPF rules laid out by the Government?

EPF Deduction for Salaries Above 15,000

My second question is, why do they deduct EPF as my basic is more than 15,000/-? Aren't employees with a basic salary of more than 15k ineligible for EPF?

Thanks in advance.

Employer's contribution is paid by the employer. Having said this, please check with your CTC. Also, if you were previously a member of EPF, then regardless of your wages being above 15k, you will continue to be a member of EPF.

Thank you for your message.

There is no mention of CTC in my salary slip. The employer contribution is being deducted from my gross as well. Could you please advise if this is a violation of the rules?

Understanding Salary Slip Deductions

The salary slip should show a deduction of PF (employee's share) from the Gross Salary, which is correct. The salary slip doesn't contain CTC figures; it should only show the Gross Salary (breakup as Basic, DA, HRA, Conveyance, etc.) and relevant deductions like PF, ESI, Professional Tax, Canteen (if applicable), etc.

Employer's Share of PF

The Employer's share of PF is a part of CTC (Cost to the Company) which the Employer bears for an employee. It is not expected to be deducted from the Gross Salary; this is incorrect. Please refer to your appointment letter copy for clarification.

Your understanding that only the employee's contribution will be deducted from your gross salary and will be shown in the salary slip, whereas the employer's contribution part will not reflect in the salary slip, is perfectly correct.

Your company's action of deducting the employer's share of PF contribution is not correct and is a blatant violation of the PF Act and rules. You need to discuss the matter with the HR head and Finance Head of your company. Based on the conclusion of discussions, you have to take appropriate action.