Facing Unexpected PF Shortfall: How Can I Resolve This with My Former Employer?

I worked with one of the top software companies in Chennai for 1.10 years and resigned from my job on 31st March 2013. Two months ago, I applied for PF reimbursement, and yesterday, I got the amount credited to my account.

However, I was very surprised because the credited amount was not even 25% of what I expected. I called my friend, who recently got his PF reimbursed, and he mentioned the same issue. He also said that many others are facing the same problem, and the payroll team is not responding properly when we inquire about this.

I emailed my company and asked them for my consolidated pay slip and Form 16, and they sent me the documents immediately. After reviewing all the parameters in the documents, I emailed them back, asking for the reason behind the discrepancy, but they have not yet replied to my email.

In the meantime, I checked with the PF Office, but they said that whatever amount they had, they have credited, and for any other queries, I need to contact the organization.

I never expected such a branded organization to act like this. Please suggest what I can do further regarding this?

Thanks,

Pradeep.

If you have Form 16 showing the actual PF amount deducted, you can make a complaint to the PF commissioner. He will take action under Sec 7A and 14 of the Act.

Regards,
Varghese Mathew

In general, every organization will follow the guidelines of the PF Authority. If you feel that the PF amount is very low, you can calculate it yourself based on your pay slip. I am providing the calculations below considering Basic is Rs. 6500/-, the statutory limit fixed by PF authorities. If your Basic+DA+Others exceed this amount, your company will calculate accordingly as per your appointment letter.

1. Employee contribution: 12% (i.e., Basic+DA+other allowances if any).

2. Employer contribution calculation: 3.67% for PF and 8.33% for the Pension Scheme. This calculation is based on Basic+DA+Others at Rs. 6,500. Please verify this information with your pay slip. If your figure exceeds this amount, Rs. 542/- will go to the Pension Fund, and the remaining balance will be allocated to your PF account. The pension fund liability will be deducted from the employer's contribution and not from yours. You can also check your balance by providing your PF number online to see how your company has calculated it.

Based on your Form 16 or your monthly pay slip, you can also seek assistance from your friends.

If you need further clarification, feel free to contact me.

Regards,
Rapolu HS

I fully agree with the view expressed by HR colleague Anil Arora to sort out this issue. Please check with the appropriate executive dealing with the matter of PF in your previous company.

Regards,
Sibarata Majumdar
[Phone Number Removed For Privacy Reasons]