My employer has wrongly deducted PF without my consent. I don’t want to contribute towards PF. What can be done to stop PF contribution?
From India, Bengaluru
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From India, Bengaluru
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What is wrong with PF?
It is a good investment, giving you a return that is always better than any other savings could offer in terms of interest and income tax. Anyway, it is not the topic of discussion. In order to comment on whether your employer had "wrongly" deducted PF from your salary, I would require the following details.
1. Your first joining at any company. You should have joined the current company now, but you may have been registered under PF when you were working earlier.
2. Suppose this is your first company, or in your earlier company you did not have any PF, then what is the basic salary offered by the current company?
3. If the basic salary is more than Rs 15,000, the company should have asked you if you would like to be covered by PF or not.
4. Whether the offer letter contained an element called EPF as one of the employee benefits reflecting the Cost To Company?
5. If yes, why didn’t you question it or tell the HR that you don’t require PF, and the employer’s contribution shown in the CTC shall be given as some other allowance or benefits?
6. If your CTC did not contain a PF component, then it is a mistake on the part of the employer/Personnel Officer to include you under EPF. Certainly, once covered, you will continue to be covered even when you join another organization unless you withdraw the accumulation after leaving the current organization. But if the employer contribution is in addition to your offered CTC, you will never be at a loss. Suppose the CTC without employer contribution to PF is Rs 75,000 per month. By oversight, the Payroll officer has put you under PF and deducted Rs 1,800 from your salary. An amount equal to Rs 1,800 will be paid by the employer also, and it will increase your CTC by Rs 1,800, and the revised CTC would become Rs 76,800. Your contribution of Rs 1,800 would give you interest as well as tax benefits. As already said, PF is not a cost for the employees but it is an investment only, an investment without any risk involved.
Please confirm the above so that we can give further advice.
From India, Kannur
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4526It is a good investment, giving you a return that is always better than any other savings could offer in terms of interest and income tax. Anyway, it is not the topic of discussion. In order to comment on whether your employer had "wrongly" deducted PF from your salary, I would require the following details.
1. Your first joining at any company. You should have joined the current company now, but you may have been registered under PF when you were working earlier.
2. Suppose this is your first company, or in your earlier company you did not have any PF, then what is the basic salary offered by the current company?
3. If the basic salary is more than Rs 15,000, the company should have asked you if you would like to be covered by PF or not.
4. Whether the offer letter contained an element called EPF as one of the employee benefits reflecting the Cost To Company?
5. If yes, why didn’t you question it or tell the HR that you don’t require PF, and the employer’s contribution shown in the CTC shall be given as some other allowance or benefits?
6. If your CTC did not contain a PF component, then it is a mistake on the part of the employer/Personnel Officer to include you under EPF. Certainly, once covered, you will continue to be covered even when you join another organization unless you withdraw the accumulation after leaving the current organization. But if the employer contribution is in addition to your offered CTC, you will never be at a loss. Suppose the CTC without employer contribution to PF is Rs 75,000 per month. By oversight, the Payroll officer has put you under PF and deducted Rs 1,800 from your salary. An amount equal to Rs 1,800 will be paid by the employer also, and it will increase your CTC by Rs 1,800, and the revised CTC would become Rs 76,800. Your contribution of Rs 1,800 would give you interest as well as tax benefits. As already said, PF is not a cost for the employees but it is an investment only, an investment without any risk involved.
Please confirm the above so that we can give further advice.
From India, Kannur
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Employer-PF-res trict to wages of Rs 6500.pdf