24% deduction of PF from the salary - provisions in the PF act for the same?

In the CTC structure, the employer might have shown the employee contribution as 12%. The pay slips will not deduct the full 24%. Please review your pay slip again, as it may only show a deduction of 12%. Since the employer contribution is also considered a part of the Cost to the Company, it would have been included in the CTC.

Pon, Chennai

Madhu ji,

So, you mean to say that there is no other option for me except to submit? (My gross is above 6500/-, and PF has only been deducted since July 2012 at 780/- with both employee and employer contribution of 780/-.) By the way, when you mention "illegal" here, do you mean it is punishable under the EPF Act?

Thanks...

Yes, if you have been a member of PF, then you should continue to contribute irrespective of your salary. However, I will not say that you should contribute both your share as well as the employer's share, which is illegal. As already pointed out by other members, if the employer has only included his share as part of CTC, then the question of deducting it from your salary will not arise. In such a case, you cannot say that it is illegal because the employer has not deducted his share of the contribution from your salary or recovered it from you by any other means. The employer has only stated that employing you will cost him Rs 780 over and above what has been paid to you as a salary.

- Madhu.T.K

Dear All,

I beg your pardon for the mistake in my last comment. It was because I thought that the member had mentioned that it would be effective from Jan'2014, whereas the member was trying to say that his employer will deduct both contribution parts from employees' salary w.e.f. Jan'2014. As the member is already covered under EPF w.e.f. July'2012, now he cannot exit from its membership once becoming a member. Although deducting the complete 24% (12% employee's share & 12% employer's share) from employees' salary is illegal.

Yes, it is illegal. Rearrange the CTC structure in such a way that it is CTC - EPF so that only 12% EPF shall be deducted and shown in the payslip. If 24% is deducted by your company and reflects on the payslip, then the license of the company can be cancelled as this deduction amounts to a criminal offense. This has been quoted by LLR, Mr. H.L. Kumar, Supreme Court.

When employers are not in a position to lend ears to learned advisors, the only option is to let them struggle and defend themselves. But employees will suffer. So, does it not mean that anybody with a capital fund can float a company without adhering to statutory or state acts? For any irregularities of the employer, it is the employees who suffer at the time of claim or transfer. What is the security for employees in contributing a mere Rs. 780/- to EPF? If such practices continue, then PF can be abolished, and an RD account be opened with a nationalized bank (SBI) and linked to the Aadhar card.

Regards,

Chandru

Dear Sanjay Tiwari,

Currently, my PF share is 12%, and the employer's share is 12%, making the total share 24%. Now, I wish to deduct 24% PF share from my salary and 12% employer share, totaling 36%. Can I deduct my PF share of 24%? If yes, what is the procedure and the form number I have to fill up?

Thank you.

Sanjay Tiwari
M: 9727704102

There is no specific form for higher contribution or voluntary contribution by the employee. For your office records, the HR will ask for a letter from you requesting that your share of contribution may be increased to 24% from the current 12% and with a declaration that the employer's share of contribution can be restricted to 12% only.

Madhu T K