Hi all, I am working in a company which deducts around 24% PF from the salary, when enquired they said that when the salary was offered they had calculated the 12% of PF from the employer's side in the offer made and then given us the package, so in that case they say now exactly 24% of PF is deducted from the salary.
Are they any such provisions in the PF act for the same???
Can 24% be deducted directly from the employee's salary?
Can the company take this decision as a policy withouth the consent of the employee???
Can this create a problem in near future wherein the company refuses us to pay the 12% from their side?????
How do we get a proof that the company is depositing the employer's 12% share into the pf account??
Please answer ASAP!!!!!!!!!!!!
From India, Vadodara
Are they any such provisions in the PF act for the same???
Can 24% be deducted directly from the employee's salary?
Can the company take this decision as a policy withouth the consent of the employee???
Can this create a problem in near future wherein the company refuses us to pay the 12% from their side?????
How do we get a proof that the company is depositing the employer's 12% share into the pf account??
Please answer ASAP!!!!!!!!!!!!
From India, Vadodara
Are they any such provisions in the PF act for the same???
There are no such provisions in any of the acts in PF
Can 24% be deducted directly from the employee's salary?
Yes when it is counted as CTC then 24% is from employees salary. First find out whether they gave you the CTC structure or gross structure.
Can the company take this decision as a policy withouth the consent of the employee???
When it comes to the calculation of CTC(which is come now-a-days) employee concern is not needed. During joining you always need to know the CTC (Cost to Company)
Can this create a problem in near future wherein the company refuses us to pay the 12% from their side?????
No there will be no such problems if the company gives the deducted amount to PF office. You will have to claim you amount from PF office not from your company. And if you withdraw after you have completed more than 6 months in the company then you will get all the amount and if less than 6 months then you will get only 12% i.e your share.
How do we get a proof that the company is depositing the employer's 12% share into the pf account??
The PF office sends a yearly statement of your share & employers share along with the interest credited in your account from that you can know. Or you can get the details from PF office.
From India, Mumbai
24There are no such provisions in any of the acts in PF
Can 24% be deducted directly from the employee's salary?
Yes when it is counted as CTC then 24% is from employees salary. First find out whether they gave you the CTC structure or gross structure.
Can the company take this decision as a policy withouth the consent of the employee???
When it comes to the calculation of CTC(which is come now-a-days) employee concern is not needed. During joining you always need to know the CTC (Cost to Company)
Can this create a problem in near future wherein the company refuses us to pay the 12% from their side?????
No there will be no such problems if the company gives the deducted amount to PF office. You will have to claim you amount from PF office not from your company. And if you withdraw after you have completed more than 6 months in the company then you will get all the amount and if less than 6 months then you will get only 12% i.e your share.
How do we get a proof that the company is depositing the employer's 12% share into the pf account??
The PF office sends a yearly statement of your share & employers share along with the interest credited in your account from that you can know. Or you can get the details from PF office.
From India, Mumbai
Thanks Chitra,
Your reply helped me and my colleagues alot, if required i would want to have more infomation regarding the same. Please note my company did not give us any neither the gross structure nor the ctc they jst placed the offer to which the employee has to accept or back off so we dont know. When the salary slips arise we come to know that there was a deduction of 24% pf from the salary.
Can we ask the company to give us the statement or account of our CTC? and what is the difference between gross structure an CTC please explain.
Also if 5 ppl have been offered the same package but their salary breakup is different for eg salary offered is 6000, here one emp has a basic salary of 3000, while other has 2800, is that ok, coz then the pf deductions would differ inspite of the same salaries to both. how can a company decide the basic salary of an employee? Is is ok if he gross salary between a few employees remain the same but the basics differ??
Please help!!!!!!!!!!!!!!
From India, Vadodara
Your reply helped me and my colleagues alot, if required i would want to have more infomation regarding the same. Please note my company did not give us any neither the gross structure nor the ctc they jst placed the offer to which the employee has to accept or back off so we dont know. When the salary slips arise we come to know that there was a deduction of 24% pf from the salary.
Can we ask the company to give us the statement or account of our CTC? and what is the difference between gross structure an CTC please explain.
Also if 5 ppl have been offered the same package but their salary breakup is different for eg salary offered is 6000, here one emp has a basic salary of 3000, while other has 2800, is that ok, coz then the pf deductions would differ inspite of the same salaries to both. how can a company decide the basic salary of an employee? Is is ok if he gross salary between a few employees remain the same but the basics differ??
Please help!!!!!!!!!!!!!!
From India, Vadodara
Deducting employer's share of contribution is illegal vide scheme 31 of the Employees Provident Fund Schemes whether it is gross pay offered or CTC "shown" to you at the time of your joining.
Basic salary and other matters are purely internal matters of the respective organisation. However, for an employer, it is always desirable to have uniform basic for all joined together for similar posts. Still, if the employer fixes different pay, you cannot question it because, the employer might have found some difference in the quality of the candidates which you cannot assess.
Regards,
Madhu.T.K
From India, Kannur
Basic salary and other matters are purely internal matters of the respective organisation. However, for an employer, it is always desirable to have uniform basic for all joined together for similar posts. Still, if the employer fixes different pay, you cannot question it because, the employer might have found some difference in the quality of the candidates which you cannot assess.
Regards,
Madhu.T.K
From India, Kannur
Hi Sonia,
Thats good u asked. I was working for a company and then to pursue my career have to leave that concern, they started deducting P.F guess from my third month it also varied every month based on my attendance. I dont remember the exact percentage, however when i left the concern after a month i applied for PF and got it in 1 and half month a lumpsum so if they deduct 24% they have should also contribute the same. It is equal share of both employee and employer. So dont worry u will get your money once u apply. But u can also get the Pf number and trace out what is happening to the deducted money by directly checking it in PF office.
Thanks,
AJITHAA HASAN
From India, Madras
Thats good u asked. I was working for a company and then to pursue my career have to leave that concern, they started deducting P.F guess from my third month it also varied every month based on my attendance. I dont remember the exact percentage, however when i left the concern after a month i applied for PF and got it in 1 and half month a lumpsum so if they deduct 24% they have should also contribute the same. It is equal share of both employee and employer. So dont worry u will get your money once u apply. But u can also get the Pf number and trace out what is happening to the deducted money by directly checking it in PF office.
Thanks,
AJITHAA HASAN
From India, Madras
Can we ask the company to give us the statement or account of our CTC?
You can always ask your company for the same.
and what is the difference between gross structure an CTC please explain.
Gross=basic+da+hra+convey+tel+food allowance+any other allowances.
CTC= gross + employer's PF+employer's ESI+gratuity+other deductions.
Also if 5 ppl have been offered the same package but their salary breakup is different for eg salary offered is 6000, here one emp has a basic salary of 3000, while other has 2800, is that ok, coz then the pf deductions would differ inspite of the same salaries to both. how can a company decide the basic salary of an employee? Is is ok if he gross salary between a few employees remain the same but the basics differ??
Yes as Madhu said its the internal matter of the company. It can give different breakups for same package and you cnt really question that.
From India, Mumbai
You can always ask your company for the same.
and what is the difference between gross structure an CTC please explain.
Gross=basic+da+hra+convey+tel+food allowance+any other allowances.
CTC= gross + employer's PF+employer's ESI+gratuity+other deductions.
Also if 5 ppl have been offered the same package but their salary breakup is different for eg salary offered is 6000, here one emp has a basic salary of 3000, while other has 2800, is that ok, coz then the pf deductions would differ inspite of the same salaries to both. how can a company decide the basic salary of an employee? Is is ok if he gross salary between a few employees remain the same but the basics differ??
Yes as Madhu said its the internal matter of the company. It can give different breakups for same package and you cnt really question that.
From India, Mumbai
Hi all,
Thank you....now am facing the same problem, but hvg a diff query...pls address this also...
Our concern has decided to deduct PF @ 1560/-from Salaries w.e.f Jan 2014. Earlier for few selected e.ees (me being one among them), they asked to get enrolled saying that there is e.er contbn which is a benefit to the e.ee. Now we are not being given any option, but are being forced to contribute 24%. Pls let me know, if there is any option for me to opt out, if so how it can be done. OR is this beneficial ? Will the entire 24% go the e.ee conbtn. What if 12% is accounted as E.er contbn. Will we get the entire 24% at the time of withdrawal ?
thanks...
From India, Coimbatore
Thank you....now am facing the same problem, but hvg a diff query...pls address this also...
Our concern has decided to deduct PF @ 1560/-from Salaries w.e.f Jan 2014. Earlier for few selected e.ees (me being one among them), they asked to get enrolled saying that there is e.er contbn which is a benefit to the e.ee. Now we are not being given any option, but are being forced to contribute 24%. Pls let me know, if there is any option for me to opt out, if so how it can be done. OR is this beneficial ? Will the entire 24% go the e.ee conbtn. What if 12% is accounted as E.er contbn. Will we get the entire 24% at the time of withdrawal ?
thanks...
From India, Coimbatore
Dear Diana_Rose,
It is illegal to deduct complete 24% of EPF Contribution from the employees salary.
Even in my view, if the employer has provided you the earning structure as CTC, still it is illegal.
But, as your query is about to opt-out this facility then, yes it is possible.
If your Basic Salary is more than Rs. 6,500/- then you can deny for that and can submit Form- 11 under EPF for Exemption from EPF.
Although, opting the EPF Scheme is always beneficial but as your employer is forcing for deduction of complete 24% contribution from employees salary is illegal.
They will definitely submit it as 12% EE & 12% ER.
But, at the time of withdrawal it depends on the membership period and If your membership period will be less than 9.5 years, then you will get complete 24% but after it, you will get only 15.61%.
Now, choice is yours.
From India, Delhi
It is illegal to deduct complete 24% of EPF Contribution from the employees salary.
Even in my view, if the employer has provided you the earning structure as CTC, still it is illegal.
But, as your query is about to opt-out this facility then, yes it is possible.
If your Basic Salary is more than Rs. 6,500/- then you can deny for that and can submit Form- 11 under EPF for Exemption from EPF.
Although, opting the EPF Scheme is always beneficial but as your employer is forcing for deduction of complete 24% contribution from employees salary is illegal.
They will definitely submit it as 12% EE & 12% ER.
But, at the time of withdrawal it depends on the membership period and If your membership period will be less than 9.5 years, then you will get complete 24% but after it, you will get only 15.61%.
Now, choice is yours.
From India, Delhi
Thank you for ur prompt response arya ji...will try to talk abt Form 11 to opt out and will update here. i say "TRY" coz i think its for reducing CTC, so, they may not allow. ThanQ once again...
From India, Coimbatore
From India, Coimbatore
For employees once covered by PF how are you going to get exclusion? For those already covered, PF should be continued even if their salary exceeds Rs 6500. Only thing is that the employer can limit his contribution to 12% of 6500 but you can not exclude them. Form 11 is form to be collected from a new joinee to know whether he was previously covered by PF or not so that he can be excluded if his PF "qualifying salary" exceeds Rs 6500. It is not a statutory form to be submitted to PF but is required to be produced for verification only.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc