Hi
Isn`t it against law , to deduct employers contribution from employees salary ? Is there any court rulings regarding the same ( As i personally feel it is the social responsibility of an employer providing the amount to PF )
From India, Kochi
Isn`t it against law , to deduct employers contribution from employees salary ? Is there any court rulings regarding the same ( As i personally feel it is the social responsibility of an employer providing the amount to PF )
From India, Kochi
There need not be any court ruling for it but the Employees Provident Fund and Miscellaneous Provisions Act, 1952, itself says that employer's share of contribution should not be deducted from the salary of the employees.
Regards,
Madhu.T.K
From India, Kannur
4248Regards,
Madhu.T.K
From India, Kannur
Dear MDHLAL, If you have material proof to prove that the deduction are made from the employee, you can lodge a complaint in EPFO. S.Sethupathy.
From India, Coimbatore
From India, Coimbatore
First to fall kindly check the appointment letter clause, if there is anything mention relating to that or you have to check the salary structure, if it was attached with the appointment letter or offer letter. Before going forward kindly check the terms and conditions, because you have to prove your complain.
From India, Bhubaneswar
From India, Bhubaneswar
If it is to be deducted from employees' salary why it should be called "EMPLOYER'S contribution". It could have been simply said "PF contribution", don't you feel so. The purpose of the Act is both employer and employee have to contribute to the fund.
Employer's contribution has to be paid by EMPLOYER only. There is no question of second opinion on this. If at all there is any clause woven in the appointment letter, will not hold water.
Balaji
From India, Madras
Employer's contribution has to be paid by EMPLOYER only. There is no question of second opinion on this. If at all there is any clause woven in the appointment letter, will not hold water.
Balaji
From India, Madras
all the companies have to maintain PF contribution register employee wise. employee's as well as employer's contribution month wise is noted down. you one can see from that the accumulated amount of PF.Annual subscriber slips are also sent by PF Organisation. which can be collected from employer
From India, Amritsar
From India, Amritsar
If the employer's contribution for PF is included in the CTC offered while joining, this will be deducted from the CTC for the Employer's contribution towards PF. However, the Gross salary does not include the Employer's contribution towards PF or ESI.
Rajusiachen
From India, Coimbatore
Rajusiachen
From India, Coimbatore
RAjusiachen is right,
Kindly review the appointment letter for the term they have used, if they have used monthly CTC - then the employer contribution will be deducted from the respective person's salary.. if they have termed the same as gross and the deduction is going on, then its violation of law. in that case, kindly approach the HR Department on the same.
Regards,
Sunil
From India, Bangalore
Kindly review the appointment letter for the term they have used, if they have used monthly CTC - then the employer contribution will be deducted from the respective person's salary.. if they have termed the same as gross and the deduction is going on, then its violation of law. in that case, kindly approach the HR Department on the same.
Regards,
Sunil
From India, Bangalore
Dear Memebers,
Just an addition to the above facts:
Since I have also faced this statement " Employer's PF contribution getting deducted from employee's salary" , this according to em is mere confusion between certain terms. Normally a comopany offers its employees an offer letter which contains CTC (Cost to Company) and Gross Salary (Employee's Salary negotiated with him). Generally an employer would like to calculate that how much an employee would cost him, including all the statutory benefits costs, thus he arrives at a figure by adding up GROSS (employees salary) plus ESIC (if any) plus PF etc. and that forms the employees CTC. This CTC is usually not the employee's salary but the total cost of the employee which has to be ultimately borne by the employer every month.
Now most of the employees misunderstand CTC figure as their salary, and observe that PF amount is mentioned/ deducted twice, thats where they land into confusion. Employees should understand that their salary is definately their Gross per month, plus the annual allowances (if any like LTA, performace bonus etc) and statutory benefits. For ease of understanding they should better negotiate on gross or take home to be on safer side.
Having said above, if still any employer deducts both the shares from employees Gross, then an official written complaint may be lodged at the EPFO alongwith a copy of the salary sheet on the company's letter head.
From India, New Delhi
Just an addition to the above facts:
Since I have also faced this statement " Employer's PF contribution getting deducted from employee's salary" , this according to em is mere confusion between certain terms. Normally a comopany offers its employees an offer letter which contains CTC (Cost to Company) and Gross Salary (Employee's Salary negotiated with him). Generally an employer would like to calculate that how much an employee would cost him, including all the statutory benefits costs, thus he arrives at a figure by adding up GROSS (employees salary) plus ESIC (if any) plus PF etc. and that forms the employees CTC. This CTC is usually not the employee's salary but the total cost of the employee which has to be ultimately borne by the employer every month.
Now most of the employees misunderstand CTC figure as their salary, and observe that PF amount is mentioned/ deducted twice, thats where they land into confusion. Employees should understand that their salary is definately their Gross per month, plus the annual allowances (if any like LTA, performace bonus etc) and statutory benefits. For ease of understanding they should better negotiate on gross or take home to be on safer side.
Having said above, if still any employer deducts both the shares from employees Gross, then an official written complaint may be lodged at the EPFO alongwith a copy of the salary sheet on the company's letter head.
From India, New Delhi
As some of our friends told now a days most oif the companies ar following the CTC model and very clearly they are giving the Annexures, elaborately discussing with the candidates at the time of interviews, obtaining an acknowledgement and even in the appointment letters also a clear cut Annexures of the salary structure and all given and the same is with the due consent of the employee hence there is no question of lodging any complaint and even lodges a complaint it won't stands in the court of law as across the organization they are following the same rule and it is well communicated / obtained the acceptance and followed.
If in some companies there is no CTC model, deductions are happening with out th consent of the employee then employees of such companies can approach the court.
Regards - kamesh
From India, Hyderabad
If in some companies there is no CTC model, deductions are happening with out th consent of the employee then employees of such companies can approach the court.
Regards - kamesh
From India, Hyderabad
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Employer-PF-res trict to wages of Rs 6500.pdf