I worked in a company for 20 years. There, they deducted PF. For some reason, I resigned and joined another company. In the new company, HR is saying that we will NOT deduct PF as your salary is above the PF wage ceiling limit. As per the PF Act, if PF has already been deducted, it should continue to be deducted. If it is the first time for a person that PF is going to be deducted, then the wage ceiling limit is applicable. Kindly clarify this matter.
From India, Coimbatore
Acknowledge(0)
Amend(0)
1From India, Coimbatore
Acknowledge(0)Amend(0)
In India, under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, if an employee has already had PF deducted in a previous employment and joins a new company, the new employer is required to continue deducting PF contributions, irrespective of the salary being above the wage ceiling limit. The wage ceiling limit is not applicable in this scenario as the individual has a history of PF deductions.
Explanation:
- The PF Act mandates that once an employee has been a part of the PF scheme in any previous employment, the subsequent employer must deduct PF contributions.
- The wage ceiling limit is relevant for new employees who are being covered under PF for the first time. In this case, since you have a history of PF deductions, the wage ceiling limit does not apply.
- It is advisable to communicate this legal requirement to the HR department of your new company, citing the PF Act provisions.
- If the HR department continues to resist deducting PF, you may escalate the matter to the regional PF office for clarification and resolution.
By following the legal provisions of the PF Act, both you and your employer can ensure compliance with the law and the continuity of your PF contributions.
From India, Gurugram
Acknowledge(0)Amend(0)
Explanation:
- The PF Act mandates that once an employee has been a part of the PF scheme in any previous employment, the subsequent employer must deduct PF contributions.
- The wage ceiling limit is relevant for new employees who are being covered under PF for the first time. In this case, since you have a history of PF deductions, the wage ceiling limit does not apply.
- It is advisable to communicate this legal requirement to the HR department of your new company, citing the PF Act provisions.
- If the HR department continues to resist deducting PF, you may escalate the matter to the regional PF office for clarification and resolution.
By following the legal provisions of the PF Act, both you and your employer can ensure compliance with the law and the continuity of your PF contributions.
From India, Gurugram
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Employee Provident Fund and MP Act, 1952.pdf
Provident Fund Act.ppt