Hello,
I worked at LIC Housing Finance Limited from March 19, 2012, to September 14, 2016. When I joined, I inquired about my CTC, and the LIC HFL HR Department communicated my Annual CTC, clearly mentioning the employer's contribution towards the Provident Fund.
Every month, PF was deducted from my salary, and an equal amount was contributed by LIC Housing Finance Limited towards the employer's contribution.
After working for 4 years and 6 months, when I was relieved from LIC Housing Finance Limited, during the full and final settlement of the provident fund amount, I received only my contribution towards the provident fund. However, the LIC PF Trust did not provide the interest portion of my probation period contribution from April 1, 2012, to March 31, 2013.
Upon inquiring about this with the LIC PF Trust, I received the following reply:
"As per Rule 20 (b) of PF Rules, Employers' contribution and interest thereon shall stand forfeited as the employee has not completed five years of service from the date of joining. Also, as per Rule 14 of PF Rules, only confirmed employees should contribute to the Fund. Hence, the employees' and employers' contribution received from the joining date until the confirmation date was refunded to LIC Housing Finance Limited on October 6, 2016."
In essence, I would like to understand if any PF Trust has a rule to forfeit the employer's contribution and its interest portion for not serving five years in one organization. This is not conducive to employee career growth.
From India, Jalalpur
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I worked at LIC Housing Finance Limited from March 19, 2012, to September 14, 2016. When I joined, I inquired about my CTC, and the LIC HFL HR Department communicated my Annual CTC, clearly mentioning the employer's contribution towards the Provident Fund.
Every month, PF was deducted from my salary, and an equal amount was contributed by LIC Housing Finance Limited towards the employer's contribution.
After working for 4 years and 6 months, when I was relieved from LIC Housing Finance Limited, during the full and final settlement of the provident fund amount, I received only my contribution towards the provident fund. However, the LIC PF Trust did not provide the interest portion of my probation period contribution from April 1, 2012, to March 31, 2013.
Upon inquiring about this with the LIC PF Trust, I received the following reply:
"As per Rule 20 (b) of PF Rules, Employers' contribution and interest thereon shall stand forfeited as the employee has not completed five years of service from the date of joining. Also, as per Rule 14 of PF Rules, only confirmed employees should contribute to the Fund. Hence, the employees' and employers' contribution received from the joining date until the confirmation date was refunded to LIC Housing Finance Limited on October 6, 2016."
In essence, I would like to understand if any PF Trust has a rule to forfeit the employer's contribution and its interest portion for not serving five years in one organization. This is not conducive to employee career growth.
From India, Jalalpur
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PF Trust rules appear to be illegal and unconstitutional. The EPF Act and EPF Rules prevail over the LICHF Trust rules. If the employer has deducted your EPF from the date of joining, he is liable to pay with interest, and you are entitled to receive the full amount. He has no right to forfeit your EPF. You may write to the Regional Commissioner EPFO of your area and also claim compensation through the Labor office by filing a complaint against your previous employer and also through the consumer forum.
From India, Mumbai
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14From India, Mumbai
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Yes, LIC PF Trust can make laws. However, if your CTC covers the PF contribution of the employer and there is no adverse clause in your letter relating to PF, such as a 5-year clause, you can claim all inclusive of interest. For that, you may need to go to court.
From India, Ahmedabad
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From India, Ahmedabad
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