tiesto (Student) 07 April 2009

Doubt regardin PF

Hi..I'm working at an IT organization as an engineer. I would like to know how this PF is calculated based on the salary as I feel my employer is trying to dupe me by making me the entire 24% of PF as against the 12% which has to be paid by both parties as per the law. Is this illegal or this organization is bending the law in a way which is profittable to it. Please solve my query.

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9 Replies

Shree. ( Advocate.) 07 April 2009

Dear Tiesto,

Provident fund is calculated @ 12% on the basic
salary, which indeed is deducted from Employee's salary and
the same plus 12% on the basic is contributed by the
employer. So the aggreate 12% + 12% is remitted to the
Provident fund Department.

For more details browse the THE ALL INDIA SERVICES (PROVIDENT FUND) RULES, 1955.

1 Like

tiesto (Student) 08 April 2009

Thanks Mr. Shree for replying. But the problem is that my company makes me pay that entire 24% and its not contributing a single rupee. Is that legal??

Shree. ( Advocate.) 08 April 2009

No,It is not legally acceptable.what ever the amount deducting in your salary ,the same amount employer have to contribute.

lokesh kaushik (service) 09 April 2009

Dear Friends

Can you provide me the legal status if i reduce the bacic salary of some of my employees due the new salary increment ,is create any non compliance issue under the EPF Act.

Thanks

Lokesh Kaushik

Ruchi (HR Manager) 10 April 2009

Tiesto, if you have accepted the appointment letter and the employer share is included in the package then its legal. your total package which is called as CTC that means Cost to company include the cost which is bearable by the company also and the gross is what your salary is!! however, if your appointment letter doesnot show the employer share and they are deducting the amount then its illegal. for more information you can mailme the copy of your appointment letter on ruchichoudhary@ymail.com. i will be happy to assist you!! thanks

JAYANTA BANERJEE (ADVOCATE ) 10 April 2009

TIESTO. IT IS TOTALLY LEGAL IF IN YOUR APPOINTMENT LETTER EMPLOYERS AND YOUR SHARE IS MENTIONED. YOU CAN NOT LESSEN YOUR BASIC SALARY FOR MORE DETAILS YOU CAN MAIL ME AT JAYANTA19742000@YAHOO.COM

bhc (lawyer) 16 April 2009

Lokesh - it is not right to reduce basic salary of any employee below 6500/- . this is because it will be seen as errosion of pension benefit to the employee.

mahesh pandey (Vice President) 17 April 2009

Hi!

It is not legal, employer has 2 contribute his share equivalent 2 that of employee.

It is not advisable 2 reduce the salary of employee

Thanks

maheshpandey

Gaurish (doctor) 10 June 2009

hi i have the same doubt, My company is also deducting the full 24% from my salary, and not contributing a single rupee,neither any share is mentioned in my appointement letter. My CTC was Rs.13000/- and my basic salary was Rs.6500/- i worked for One year.Kindly calculate my PF and guide me what steps can i take to see that my company does not dupe me.and is it that the company should contribute equal amount as the employee or just 12% is enough even if the employee is contributing 24%.Please help me out My email id is arish_12@rediffmail.com...please some one help and reply to me