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
4From India, Delhi
Employee PF contribution will be deducted from employees salary, whereas if the employer contribution deducted from the employee's salary will form a part of the CTC. It is compulsory to contibution EDLI.
From India, Bangalore
From India, Bangalore
In CTC regime, this deduction is acceptable and it is widely followed across many sectors. Pon
From India, Lucknow
From India, Lucknow
Dear Sonia/Priya/Pon,
Thanks a lot for the replies..
Can you please clarify whether the employee will be getting both 12% of Employee contribution & 12% of employer contribution at the time of resignation??
What is the case if an employee resigns before completion of 6 months experience??
What is the case if an employee resigns after completion of 6 months experience??
As i know employee cant apply for PF withdrawel before completion of 6 months experience..Is this correct??
Please suggest..
Thanks & Regards,
Swetha
From India, Delhi
Thanks a lot for the replies..
Can you please clarify whether the employee will be getting both 12% of Employee contribution & 12% of employer contribution at the time of resignation??
What is the case if an employee resigns before completion of 6 months experience??
What is the case if an employee resigns after completion of 6 months experience??
As i know employee cant apply for PF withdrawel before completion of 6 months experience..Is this correct??
Please suggest..
Thanks & Regards,
Swetha
From India, Delhi
Swetha,
When an employee seperates from an organisation he can file withdrawal of PF after 60 days from the day of relieve. It doesn't matter whatsoever the service period he/she have served. Form 19 & 10C has to be filed, one is for PF fund & other is for pension fund. The amount comes in two splits respectively.
(The employer have been already deducted 12% from employee & after adding their contribution of same they deposited it in PF authority)
If you need some more data & if you can't share the actual question over here, you can please mail me or call me.
From India, Pune
When an employee seperates from an organisation he can file withdrawal of PF after 60 days from the day of relieve. It doesn't matter whatsoever the service period he/she have served. Form 19 & 10C has to be filed, one is for PF fund & other is for pension fund. The amount comes in two splits respectively.
(The employer have been already deducted 12% from employee & after adding their contribution of same they deposited it in PF authority)
If you need some more data & if you can't share the actual question over here, you can please mail me or call me.
From India, Pune
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 new employer code.
Nitin Tadvalkar
From India, Pune
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 new employer code.
Nitin Tadvalkar
From India, Pune
Dear All,
Thanks a lot for sharing valuble information......
I got a clarification that it is legal to deduct both employee & employer contribution for PF from Employee salary!!!!
Thanks & Regards,
Swetha
From India, Delhi
Thanks a lot for sharing valuble information......
I got a clarification that it is legal to deduct both employee & employer contribution for PF from Employee salary!!!!
Thanks & Regards,
Swetha
From India, Delhi
Dear Swetha,
As per my knowledge, employee has to complete his service more than 6 months to get his withdrawal benefits of FPF (Pension) account. In other words, he may withdraw his PF amount however his claim for Pension account may be rejected due to service less than 6 months. In such case, he may transfer the pension account to his new PF/FPF account alloted to him in his new appointment.
The statement you are making in your last post "I got a clarification that it is legal to deduct both employee & employer contribution for PF from Employee salary" is little confusing.
When the word comes 'Salary', it is obligatory to deduct employee's PF contribution from his earning and the employer has to deposit his contribution along with administrative and EDLI charges. Rather to say, from Employee salary only, we can consider that both are liable to proceed for their contributions towards PF.
Now a days a word like 'CTC' includes the amount of employer's PF contributions in the cost to company for that employee. It is just a matter of understanding for employee and employer.
Regards,
Atul
From India, Sholapur
As per my knowledge, employee has to complete his service more than 6 months to get his withdrawal benefits of FPF (Pension) account. In other words, he may withdraw his PF amount however his claim for Pension account may be rejected due to service less than 6 months. In such case, he may transfer the pension account to his new PF/FPF account alloted to him in his new appointment.
The statement you are making in your last post "I got a clarification that it is legal to deduct both employee & employer contribution for PF from Employee salary" is little confusing.
When the word comes 'Salary', it is obligatory to deduct employee's PF contribution from his earning and the employer has to deposit his contribution along with administrative and EDLI charges. Rather to say, from Employee salary only, we can consider that both are liable to proceed for their contributions towards PF.
Now a days a word like 'CTC' includes the amount of employer's PF contributions in the cost to company for that employee. It is just a matter of understanding for employee and employer.
Regards,
Atul
From India, Sholapur
Dear Atul,
Then is that illegal to deduct both employee & employer contribution(PF) from employees Gross salary ie; from per month saalry??
As i know it is illegal but some are telling that its legal..its just confusing!!!!!!! Please tell the correct answer.....
Thanks & Regards,
Swetha
From India, Delhi
Then is that illegal to deduct both employee & employer contribution(PF) from employees Gross salary ie; from per month saalry??
As i know it is illegal but some are telling that its legal..its just confusing!!!!!!! Please tell the correct answer.....
Thanks & Regards,
Swetha
From India, Delhi
Hi,
It is indeed very much illegal if any employer deduct both the Employer's & Employees' contribution from the salary of the employee concerned.
If any employer fails to deduct employees' subs. to his/her PF account, it is the liability of the employer to bear both the contributions including accrued interest thereon and thereis no provision to recover atleast the employees' subs. from the employee subsequently but the Estt. should meet both with interest.
In this connection law is very clear. You may have got confused with the CTC regime some of them pointing out, which some times should clearly say salary (CTC) is represented in the form of CTC which in its entirity is not fully payable to the employee concerned. One has to understand the terms & conditions of apptt. very clearly.
kumar.s.
From India, Bangalore
It is indeed very much illegal if any employer deduct both the Employer's & Employees' contribution from the salary of the employee concerned.
If any employer fails to deduct employees' subs. to his/her PF account, it is the liability of the employer to bear both the contributions including accrued interest thereon and thereis no provision to recover atleast the employees' subs. from the employee subsequently but the Estt. should meet both with interest.
In this connection law is very clear. You may have got confused with the CTC regime some of them pointing out, which some times should clearly say salary (CTC) is represented in the form of CTC which in its entirity is not fully payable to the employee concerned. One has to understand the terms & conditions of apptt. very clearly.
kumar.s.
From India, Bangalore
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