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(Guest)

Responsibility of pf deduction

Respected Sir/Madam,

An employer company (registered establishment under PF Act) is deducting PF from employees and paying properly on monthly basis.

However, the company has deliberately / inadvertently failed to deduct PF from certain employees whose salaries are eligible for PF deduction.

Please advise me whether there is any case law saying that the responsibility of deduction of PF from eligible employees is on the part of the Employer only. Kindly provide details of case laws or provisions of law stating that the compliance under PF Act is on the part of Employer and any non-compliance will attract to penalise the Employer.

Thanking you.



Learning

 4 Replies

Pradipta Nath (Advocate)     20 June 2022

PF deduction is mandatory and non compliance brings penalty. Apart, if deducting and not submitting in the PF account brings criminal liability. There is sections specific to this regard.

1 Like

Anitha Gutti (job)     20 June 2022

THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 provides following sections that the Employer and Employee contributions 

6. Contributions and matters which may be provided for in Schemes.—5*** The contribution which shall be paid by the employer to the Fund shall be 6 [ten per cent.] of the basic wages, 7 [dearness allowance and retaining allowance (if any)] for the time being payable to each of the employees 8 [(whether employed by him directly or by or through a contractor)], and the employees’ contribution shall be equal to the contribution payable by the employer in respect of him and may, 9 [if any employee so desires, be an amount exceeding 6 [ten per cent.]of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section]:

9 [Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words 6 [ten per cent.], at both the places where they occur, the words 10[twelve per cent.]

 

The provision mandates the employer to pay the contribution on behalf of the employer along with employee's contribution.  The provision to be interpreted in such a way that the employer shall pay both the employer and employee contribution to the fund and shall recover the employee contribution by deducting from the salary.  

The source for the payment of the employee contribution shall be seen in the provision given below:

[8A. Recovery of moneys by employers and contractors.—(1) 12[The amount of contribution (that is to say the employer’s contribution as well as the employee’s contribution in pursuance of any Scheme and the employer’s contribution in pursuance of the Insurance Scheme)], and any charges 13*** for meeting the cost of administering the Fund paid or payable by an employer in respect of an employee employed by or through a contractor may be recovered by such employer from the contractor, either bydeduction from any amount payable to the contractor, under any contract or as a debt payable by the contractor.

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of any employee employed by or through him, may recover from such employee the employee’s contribution 1 [under any Scheme] by deduction from the basic wages, dearness allowance and retaining allowance (if any) payable to such employee.

(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer’s contribution or the charges referred to in sub-section (1) from the basic wages, dearness allowance, and retaining allowance (if any) payable to an employee employed by or through him or otherwise to recover such contribution or charges from such employee.

 

pavan krishna   18 November 2022

Hello Sir,
My previous company gave me reliving documents as Jan 31st 2022 which is correct date and then they paid me salary for removing me from company without serving notice period. so I took Mt reliving documents which shows Jan 31st 2022 and joined in New company March 30th 2022 . Now the old company updated the date of exit in EPFO was My last working day as March 30th 2022.
when I ask my old company about this dates they are saying we cannot change its your mistake.
so here issue is old company - official reliving documents dated as 31st Jan 2022.
on epfo it's 31st March 2022
I joined in New company in 30th March 2022.

Now old company is not helping to change the date as per there given reliving documents.

please suggest how to solve this.

thanks
pavan

Sudhir Kumar, Advocate (Advocate)     08 December 2022

submit evasion compliant with RPFC stating full facts.


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