04 February 2012
I am working for Corporate Company. My Basic Pay is Rs. 11937/- The company has offered me a Package of 3,78000 /- which includes PF deduction of 17,189 /- p/a. Per month it comes 1432/-. My Gross/Month including PF is 31550. After deduction of1432/- it is 30118- p/m.
Here comes the confusion. On the Gross amount(after PF Deduction), the company is again showing 1432 in the Deductions column. Is this allowed? Actually the company is not contributing any PF to me. Both Employee and Employer contribution is being taken from my CTC to a total of 1432+1432. Please advise if any action can be taken on this.
04 February 2012
12% of your basic Employer should contribute to EPS & EPF. CTC is the Cost To the Company, hence whatever amount they spend on you they will add to CTC. In this case employer is contributing EPF amount hence they are adding to your CTC.
As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month.
04 February 2012
Thank you for your reply. so In my case, what ever the PF included in my ctc is the employer contribution? Also as per PF Policy the deduction of 12 % of Basic is limited to 6500 only. But my basic is 11977. They are taking 12% of my entire basic. IS this reasonable
06 February 2012
12% employer contribution is mandatory towards EPS and EPF partially. You need not to worry. If you have doubt you ask your employer PF statement.
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