I am from Tamil Nadu (Tirupur), working in the dyeing industry. Last month, the management informed us that they will no longer contribute to the PF amount. Employees who wish to have PF will have to pay the full contribution themselves (employee contribution 12% and employer contribution 13.61%).
Legal Implications of PF Contribution Changes
Is this legal or illegal? Should we file a complaint against this decision?
Regards.
From India, Trichy
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Legal Implications of PF Contribution Changes
Is this legal or illegal? Should we file a complaint against this decision?
Regards.
From India, Trichy
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It is not legal; it is purely illegal. Once management starts to contribute to the PF, the contribution cannot be stopped without the knowledge of the PF authorities. You can report the management to pay the employer contribution. Otherwise, file a complaint with the PF authorities; they will collect from the management with interest and damages from the date of eligibility.
Regards,
Alphonse
From India, Madras
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166Regards,
Alphonse
From India, Madras
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Legal Clarification on Termination for Criminal Case & PF Contribution Reduction.pdf