Consolidated Salary and Employer's contribution to EPF

My last monthly CTC when I left Company A(Pvt Ltd) was Rs18447 where Employee's contribution to EPF as well as Employer's contribution was Rs 1167 each. During Covid times, I had to join a sister concern, Company B (Pvt Ltd), of the same company who said they will pay me a consolidated amount equivalent to my previous Company A's salary but without any EPF benefits. But during calculation of my salary, they calculated it without adding Employer's contribution amount of Rs 1167 and finalized my salary as Rs 17280. Since the 2 companies are separate entities, can they choose to ignore Rs1167 citing "consolidated salary" as a term?

Hi,

As the Company B has to agreed to pay consolidated amount equivalent to your past salary they should have fixed Rs.18,447/- as your over all salary including employer PF amounts to Rs.18,447/-. Before accepting the offer you should have raised this question with Company B.

If in your 1st organization there was PF , the 2nd organization ( If the organization is covered under EPFO ) can not dis-continue your PF. It is illegal.

In the 2nd organization your salary is consolidated amount and your PF Gross will be the same. In Form-11 at the time of joining if you have disclose your UAN number etc., the 2nd Organization should continue your PF but they may restrict contribution maximum on 15,000/- per month.

In most of the cases organizations are taking such decision due to lack of knowledge.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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