Dear Seniors, Is that correct to deduct both employee & employer contributions for PF from employee salary?? Please suggest on the same,which is very important for me.. Thanks & Regards, Swetha
From India, Delhi
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4From India, Delhi
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Employee PF contribution will be deducted from the employee's salary, whereas if the employer contributes, it will be deducted from the employee's salary and will form a part of the CTC. It is compulsory to contribute to EDLI.
From India, Bangalore
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From India, Bangalore
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In CTC regime, this deduction is acceptable and it is widely followed across many sectors. Pon
From India, Lucknow
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From India, Lucknow
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Dear Sonia, Priya, Pon,
Thanks a lot for the replies.
Can you please clarify whether the employee will be getting both 12% of the employee contribution and 12% of the employer contribution at the time of resignation?
What is the case if an employee resigns before completion of 6 months of experience?
What is the case if an employee resigns after completion of 6 months of experience?
As I know, an employee can't apply for PF withdrawal before completion of 6 months of experience. Is this correct?
Please suggest.
Thanks and Regards,
Swetha
From India, Delhi
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Thanks a lot for the replies.
Can you please clarify whether the employee will be getting both 12% of the employee contribution and 12% of the employer contribution at the time of resignation?
What is the case if an employee resigns before completion of 6 months of experience?
What is the case if an employee resigns after completion of 6 months of experience?
As I know, an employee can't apply for PF withdrawal before completion of 6 months of experience. Is this correct?
Please suggest.
Thanks and Regards,
Swetha
From India, Delhi
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Swetha,
When an employee separates from an organization, he can file a withdrawal of PF after 60 days from the day of relief. It doesn't matter whatsoever the service period he/she has served. Form 19 & 10C have to be filed; one is for the PF fund & the other is for the pension fund. The amount comes in two splits respectively. (The employer has already deducted 12% from the employee & after adding their contribution of the same, they deposited it in the PF authority.)
If you need some more data & if you can't share the actual question over here, you can please email me or call me.
From India, Pune
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When an employee separates from an organization, he can file a withdrawal of PF after 60 days from the day of relief. It doesn't matter whatsoever the service period he/she has served. Form 19 & 10C have to be filed; one is for the PF fund & the other is for the pension fund. The amount comes in two splits respectively. (The employer has already deducted 12% from the employee & after adding their contribution of the same, they deposited it in the PF authority.)
If you need some more data & if you can't share the actual question over here, you can please email me or call me.
From India, Pune
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Swetha,
If an employee leaves before 6 months, he/she forfeits the FPF component, i.e., 8.33%. However, he/she will get the PF component, i.e., 12% deduction + 3.67% contribution, along with interest. The application has to be made after 60 days. Therefore, the best way is to transfer the PF to the new employer code.
Nitin Tadvalkar
From India, Pune
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If an employee leaves before 6 months, he/she forfeits the FPF component, i.e., 8.33%. However, he/she will get the PF component, i.e., 12% deduction + 3.67% contribution, along with interest. The application has to be made after 60 days. Therefore, the best way is to transfer the PF to the new employer code.
Nitin Tadvalkar
From India, Pune
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Dear All,
Thank you all for sharing valuable information.
I have received clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary.
Thanks and Regards,
Swetha
From India, Delhi
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Thank you all for sharing valuable information.
I have received clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary.
Thanks and Regards,
Swetha
From India, Delhi
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Dear Swetha,
As per my knowledge, an employee has to complete more than 6 months of service to be eligible for withdrawal benefits from the FPF (Pension) account. In other words, the employee may withdraw the PF amount; however, their claim for the Pension account may be rejected if the service period is less than 6 months. In such a case, the employee may transfer the pension account to the new PF/FPF account allocated to them in their new appointment.
The statement you made in your last post, "I got a clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary," is a little confusing.
When it comes to the word 'Salary,' it is mandatory to deduct the employee's PF contribution from their earnings, and the employer must deposit their contribution along with administrative and EDLI charges. In other words, from the employee's salary, it can be understood that both parties are responsible for contributing towards PF.
These days, a term like 'CTC' includes the employer's PF contributions in the cost to the company for that employee. It is simply a matter of understanding for both the employee and the employer.
Regards,
Atul
From India, Sholapur
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As per my knowledge, an employee has to complete more than 6 months of service to be eligible for withdrawal benefits from the FPF (Pension) account. In other words, the employee may withdraw the PF amount; however, their claim for the Pension account may be rejected if the service period is less than 6 months. In such a case, the employee may transfer the pension account to the new PF/FPF account allocated to them in their new appointment.
The statement you made in your last post, "I got a clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary," is a little confusing.
When it comes to the word 'Salary,' it is mandatory to deduct the employee's PF contribution from their earnings, and the employer must deposit their contribution along with administrative and EDLI charges. In other words, from the employee's salary, it can be understood that both parties are responsible for contributing towards PF.
These days, a term like 'CTC' includes the employer's PF contributions in the cost to the company for that employee. It is simply a matter of understanding for both the employee and the employer.
Regards,
Atul
From India, Sholapur
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Dear Atul,
Is it illegal to deduct both employee and employer contributions (PF) from an employee's gross salary, i.e., from their monthly salary? I believe it is illegal, but some are saying that it is legal. It's just confusing! Please provide the correct answer.
Thanks and Regards,
Swetha
From India, Delhi
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Is it illegal to deduct both employee and employer contributions (PF) from an employee's gross salary, i.e., from their monthly salary? I believe it is illegal, but some are saying that it is legal. It's just confusing! Please provide the correct answer.
Thanks and Regards,
Swetha
From India, Delhi
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Hi,
It is indeed illegal if an employer deducts both the employer's and employees' contributions from the employee's salary. If an employer fails to deduct an employee's subscription to their PF account, it is the employer's responsibility to cover both contributions, including accrued interest. There is no provision to later recover the employee's subscription from the employee, but the establishment should cover both with interest.
The law in this regard is very clear. There may be confusion with the CTC regime, where some may point out that the CTC (Cost to Company) is not entirely payable to the employee. It is essential to understand the terms and conditions of the appointment clearly.
Regards,
Kumar S.
From India, Bangalore
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It is indeed illegal if an employer deducts both the employer's and employees' contributions from the employee's salary. If an employer fails to deduct an employee's subscription to their PF account, it is the employer's responsibility to cover both contributions, including accrued interest. There is no provision to later recover the employee's subscription from the employee, but the establishment should cover both with interest.
The law in this regard is very clear. There may be confusion with the CTC regime, where some may point out that the CTC (Cost to Company) is not entirely payable to the employee. It is essential to understand the terms and conditions of the appointment clearly.
Regards,
Kumar S.
From India, Bangalore
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Employer-PF-res trict to wages of Rs 6500.pdf