My employer has wrongly deducted PF without my consent. I don’t want to contribute towards PF. What can be done to stop PF contribution?
From India, Bengaluru
From India, Bengaluru
What us wrong with PF? It is a good investment giving you a return which is always better than any other savings could give you by way of interest and income tax. Anyway, it is not the topic of discussion. In order to comment whether your employer had "wrongly" deducted Pf from your salary, I would require the following details.
1. Your first joining any company. You should have joined the current company now, but you may have got registered under PF when you were working earlier.
2. Suppose that this is your first company, or in your earlier company you did not have any PF, then what is the Basic salary offered by the current company?
3. If the basic salary is more than Rs 15000, the company should have asked you if you would like to be covered by PF or not.
4. Whether the offer letter contained an element called EPF as one of the employee benefits reflecting the Cost To Company?
5. If Yes, why didn't you question it or tell the HR that you don't require PF, and the employer's contribution shown in the CTC shall be given as some other allowance or benefits?
6. If your CTC did not contain a PF component, then it is a mistake on the part of the employer/ Personnel Officer to include you under EPF. Certainly, once covered, you will continue to be covered even when you join another organisation unless you withdraw the accumulation after leaving the current organisation. But if the employer contribution is in addition to your offered CTC, you will never be at a loss. Suppose, the CTC without employer contribution to PF is Rs 75000 per month. By oversight the Payroll officer has put you under PF and deducted Rs 1800 from your salary. An amount equal to Rs 1800 will be paid by the employer also, and it will increase your CTC by Rs 1800 and the revised CTC would become Rs 76800. Your contribution of Rs 1800 would give you interest as well as tax benefits. As already said, PF is not a cost for the employees but it is an investment only, an investment without any risk involved.
Please confirm the above so that we take give further advice.
From India, Kannur
42441. Your first joining any company. You should have joined the current company now, but you may have got registered under PF when you were working earlier.
2. Suppose that this is your first company, or in your earlier company you did not have any PF, then what is the Basic salary offered by the current company?
3. If the basic salary is more than Rs 15000, the company should have asked you if you would like to be covered by PF or not.
4. Whether the offer letter contained an element called EPF as one of the employee benefits reflecting the Cost To Company?
5. If Yes, why didn't you question it or tell the HR that you don't require PF, and the employer's contribution shown in the CTC shall be given as some other allowance or benefits?
6. If your CTC did not contain a PF component, then it is a mistake on the part of the employer/ Personnel Officer to include you under EPF. Certainly, once covered, you will continue to be covered even when you join another organisation unless you withdraw the accumulation after leaving the current organisation. But if the employer contribution is in addition to your offered CTC, you will never be at a loss. Suppose, the CTC without employer contribution to PF is Rs 75000 per month. By oversight the Payroll officer has put you under PF and deducted Rs 1800 from your salary. An amount equal to Rs 1800 will be paid by the employer also, and it will increase your CTC by Rs 1800 and the revised CTC would become Rs 76800. Your contribution of Rs 1800 would give you interest as well as tax benefits. As already said, PF is not a cost for the employees but it is an investment only, an investment without any risk involved.
Please confirm the above so that we take give further advice.
From India, Kannur
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