PF Deduction Discrepancy
Can an employer allow PF deduction for some employees on more than 15k while restricting others to 15k?
For example, there are a total of 10 employees in an organization. All 10 employees have a PF salary of 20k, but:
- For 5 selective employees, the employer is paying a contribution (12%) on a minimum PF salary of 15k, which amounts to Rs 1800 per employee.
- For the remaining 5 employees, the employer is paying a contribution (12%) on a PF salary of 20k, which amounts to Rs 2400 per employee.
Would this amount to discrimination, or is it the employer's prerogative to decide whom he wants to restrict to 15k or more?
Kindly shed some light on the above scenario.
From India, Aurangabad
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14Can an employer allow PF deduction for some employees on more than 15k while restricting others to 15k?
For example, there are a total of 10 employees in an organization. All 10 employees have a PF salary of 20k, but:
- For 5 selective employees, the employer is paying a contribution (12%) on a minimum PF salary of 15k, which amounts to Rs 1800 per employee.
- For the remaining 5 employees, the employer is paying a contribution (12%) on a PF salary of 20k, which amounts to Rs 2400 per employee.
Would this amount to discrimination, or is it the employer's prerogative to decide whom he wants to restrict to 15k or more?
Kindly shed some light on the above scenario.
From India, Aurangabad
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PF Deduction Above the Slab Limit
Yes, an employer can do PF deduction for some employees above the slab limit of 15k and others on a 15k limit based on the rule.
Your concern over the matter is justified, but our government has framed rules with inherent discrimination, and the employer takes advantage of it. Therefore, nothing stands in its place.
All the employees under the 15k limit request the employer to maintain parity for all employees.
From India, Mumbai
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Yes, an employer can do PF deduction for some employees above the slab limit of 15k and others on a 15k limit based on the rule.
Your concern over the matter is justified, but our government has framed rules with inherent discrimination, and the employer takes advantage of it. Therefore, nothing stands in its place.
All the employees under the 15k limit request the employer to maintain parity for all employees.
From India, Mumbai
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