Dear friend,
I recently joined a company. They are deducting ₹780 as PF contribution, but the company is not depositing the same amount into any PF account, and the company is not providing any contribution either. I informed the management to stop the deduction, and in response, they suggested deducting the same amount under any security deposit head from the employee.
Can anyone suggest how and under which category I can deduct money from employees' salaries? However, it should not be unfair to the employee.
Thanks
From India, Bangalore
Acknowledge(0)
Amend(0)
1I recently joined a company. They are deducting ₹780 as PF contribution, but the company is not depositing the same amount into any PF account, and the company is not providing any contribution either. I informed the management to stop the deduction, and in response, they suggested deducting the same amount under any security deposit head from the employee.
Can anyone suggest how and under which category I can deduct money from employees' salaries? However, it should not be unfair to the employee.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
Abhipsa Sahoo: Deduction of PF and non-deposit of the same is a crime. (You might need an expert consultant to help navigate this issue).
Deduction of salary is based on legally permissible heads only - meals, etc., and not on any arbitrary process/head or norm.
From India, Mumbai
Acknowledge(0)Amend(0)
Deduction of salary is based on legally permissible heads only - meals, etc., and not on any arbitrary process/head or norm.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Abhipsa Sahoo,
Please note that deductions from wages are to be made in accordance with the provisions under the Payment of Wages Act. You are not authorized to make any deduction other than the deductions listed in section 7(2) of the Act and subject to limits as mentioned in section 7(3). Deductions other than the listed items/heads are unauthorized deductions.
Deductions towards security deposits are unauthorized deductions. What do you mean by security deposit?
Deductions towards PF without having a code are also unauthorized deductions. Non-depositing deducted PF in the code allotted to you within the stipulated time is a serious offense under criminal law.
From India, Mumbai
Acknowledge(0)Amend(0)
Please note that deductions from wages are to be made in accordance with the provisions under the Payment of Wages Act. You are not authorized to make any deduction other than the deductions listed in section 7(2) of the Act and subject to limits as mentioned in section 7(3). Deductions other than the listed items/heads are unauthorized deductions.
Deductions towards security deposits are unauthorized deductions. What do you mean by security deposit?
Deductions towards PF without having a code are also unauthorized deductions. Non-depositing deducted PF in the code allotted to you within the stipulated time is a serious offense under criminal law.
From India, Mumbai
Acknowledge(0)Amend(0)
The employer has deducted PF contribution on PF wages as per the old wage ceiling of Rs. 6500 and has not deposited, which is an offense. The deduction, other than those defined in enactments applicable to the establishment, for example, as explained above by expert members, can't be made. The conduct of the employer is illegal and liable for punishment.
The HR personnel and payroll executive should decline to be part of this illegality.
From India, Chandigarh
Acknowledge(0)Amend(0)
The HR personnel and payroll executive should decline to be part of this illegality.
From India, Chandigarh
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Company Profile.ppt
Company Profile Letter - Global Risk Management Services.pdf