My last monthly CTC when I left Company A (Pvt Ltd) was Rs 18,447, where both the employee's and employer's contributions to EPF were Rs 1,167 each. During the COVID-19 period, I had to join a sister concern, Company B (Pvt Ltd), which is part of the same company. They agreed to pay me a consolidated amount equivalent to my previous salary at Company A but without any EPF benefits. However, when calculating my salary, they did not include the employer's contribution of Rs 1,167 and finalized my salary as Rs 17,280. Since the two companies are separate entities, can they choose to ignore the Rs 1,167 by citing "consolidated salary" as a term?
From India, Chipurupalle
Acknowledge(0)
Amend(0)
From India, Chipurupalle
Acknowledge(0)Amend(0)
Hi, As Company B has agreed to pay a consolidated amount equivalent to your past salary, they should have fixed your overall salary at Rs. 18,447, including employer PF contributions. Before accepting the offer, you should have raised this question with Company B.
From India, Madras
Acknowledge(0)Amend(0)
1015From India, Madras
Acknowledge(0)Amend(0)
If in your first organization there was PF, the second organization (if the organization is covered under EPFO) cannot discontinue your PF. It is illegal. In the second organization, your salary is a consolidated amount, and your PF Gross will be the same. In Form-11 at the time of joining, if you have disclosed your UAN number, etc., the second organization should continue your PF, but they may restrict contributions to a maximum of 15,000/- per month. In most cases, organizations are making such decisions due to a lack of knowledge.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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.
EPF Scheme Guidelines For Implementation Of PMGKY Credit Of Employers And Employee Contribution .pdf
EPF - Pension contribution is zero WHY.jpg