I recently joined a company. They are deducting ₹780 as a PF contribution, but the company is not depositing the same amount into any PF account, and the company is not providing any contribution either. I informed the management to stop the deduction, and in response, they suggested deducting the same amount under any security deposit head from the employee.
Seeking Advice on Salary Deductions
Can anyone suggest how and under which category I can deduct money from employees' salaries? However, it should not be unfair to the employee.
Thanks
From India, Bangalore
Acknowledge(0)
Amend(0)
Seeking Advice on Salary Deductions
Can anyone suggest how and under which category I can deduct money from employees' salaries? However, it should not be unfair to the employee.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
Deduction of PF and Non-Deposit Issues
Deduction of PF and non-deposit of the same is a crime. You might need an expert consultant to help navigate this issue.
Legally Permissible Salary Deductions
Deduction of salary is based on legally permissible heads only, such as meals, etc., and not on any arbitrary process, head, or norm.
Regards,
Abhipsa Sahoo
From India, Mumbai
Acknowledge(0)Amend(0)
92Deduction of PF and non-deposit of the same is a crime. You might need an expert consultant to help navigate this issue.
Legally Permissible Salary Deductions
Deduction of salary is based on legally permissible heads only, such as meals, etc., and not on any arbitrary process, head, or norm.
Regards,
Abhipsa Sahoo
From India, Mumbai
Acknowledge(0)Amend(0)
Please note that deductions from wages are to be made in accordance with the provisions under the Payment of Wages Act. You are not authorized to make any deduction other than the deductions listed in section 7(2) of the Act and subject to limits as mentioned in section 7(3). Deductions other than the listed items/heads are unauthorized deductions.
Unauthorized Deductions
Deductions towards security deposits are unauthorized deductions. What do you mean by security deposit?
Deductions towards PF without having a code are also unauthorized deductions. Non-depositing deducted PF in the code allotted to you within the stipulated time is a serious offense under criminal law.
From India, Mumbai
Acknowledge(1)
Amend(0)
Unauthorized Deductions
Deductions towards security deposits are unauthorized deductions. What do you mean by security deposit?
Deductions towards PF without having a code are also unauthorized deductions. Non-depositing deducted PF in the code allotted to you within the stipulated time is a serious offense under criminal law.
From India, Mumbai
Acknowledge(1)Amend(0)
Illegal PF Deduction Practices
The employer has deducted PF contributions on PF wages as per the old wage ceiling of ₹6,500 and has not deposited them, which is an offense. Deductions, other than those defined in enactments applicable to the establishment, cannot be made. As explained above by expert members, the conduct of the employer is illegal and liable for punishment.
The HR personnel and payroll executive should decline to be part of this illegality.
From India, Chandigarh
Acknowledge(0)Amend(0)
The employer has deducted PF contributions on PF wages as per the old wage ceiling of ₹6,500 and has not deposited them, which is an offense. Deductions, other than those defined in enactments applicable to the establishment, cannot be made. As explained above by expert members, the conduct of the employer is illegal and liable for punishment.
The HR personnel and payroll executive should decline to be part of this illegality.
From India, Chandigarh
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Salary file - India 2016 AB.xls
PF Judgement - Bom HC - Temp employee.doc