Is My Employer Obligated to Deposit PF for Voluntary Work During Pay Cuts?

I am a payroll employee with PF deductions. However, due to the pandemic, we had pay cuts last year and received zero salary in May and June. During that time, we were asked to work voluntarily as the revenue was not sufficient to pay employees. Being involved in placements, those two months were busy as I was assisting students in finding jobs. I worked voluntarily during that period, and we were asked to sign a letter confirming this arrangement.

After some months, we discovered that the company had not deposited our PF amounts to EPFO for May and June. When questioned, they only verbally mentioned that since it was voluntary work without pay, they didn't deposit PF. I have concerns about this situation. Please share your thoughts on whether they were still required to credit our PF accounts for those months or not.

In India, the Employees' Provident Fund Organization (EPFO) governs the rules related to PF contributions. Here are some key points to consider regarding the situation described:

Legal Perspective:
- According to Indian labor laws, the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, mandates that PF contributions must be made by both the employer and the employee.
- PF contributions are calculated as a percentage of the employee's basic salary and dearness allowance.
- Any period during which an employee works, whether paid or unpaid, is considered eligible for PF contributions unless specifically exempted by law.

Employer Obligations:
- Employers are legally obligated to deposit the PF contributions, including the employer's share, with the EPFO on a monthly basis.
- Even if an employee works voluntarily or during a sabbatical period, the employer is still required to make PF contributions for that period.

Recommended Action Steps:
1. Contact your employer or HR department to seek clarification on why the PF contributions were not made for the months of May and June when you worked voluntarily.
2. Request written documentation or proof of the exemption from PF contributions for those months if the employer claims such an exemption.
3. If the employer fails to provide a satisfactory explanation, consider reaching out to the EPFO directly to report the issue and seek guidance on the next steps.
4. Keep records of all communication and documentation related to this matter for future reference.

Final Thoughts:
- It is essential to ensure that your PF contributions are made accurately and in compliance with the law to safeguard your retirement savings and benefits.
- If there are any discrepancies or violations regarding PF contributions, it is advisable to address them promptly to avoid potential financial implications in the future.

By following these steps and being proactive in seeking clarification, you can ensure that your rights regarding PF contributions are protected in accordance with Indian labor laws.