Mandar P Khire (Jr. Software Developer) 12 June 2013

Employeer not deposit own share!

Respected Sir/Madam,

I am working in Ltd company which have upto 300 employee aprox. I complete 6 months of probation period just now. From EPFO website i see my last 4 months statement of account, which show me how much i deposit & how much employeer deposit. So As per my appointment letter my PF deducted from my salary every month is 12% of my basic salary. This calculation & actual statement show accurate from employee share. Now as per Act same share should deposit from employeer side also but it not...only 3.4194% at first month, 3.1828% second month, 3.6774% at third month, 3.4194% at forth month of basic salary!(I got statement which show only 4 months from EPFO)

So what are the criteria for allonces means xx% alownce so xx% pf for me?

I got Housing Rent Allownce 35.0108%, conveyance 25.0108%, HCA 10%, Speicial Allownce 25.0108%, LTA 8.3441%, Monthly Ex-Gratia 10% with compare to Basic.

By particular rule or law can i ask them why they not give me equal share in pf?

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3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 12 June 2013

most companies and employees have been restricting their contribution to Provident Fund ('PF') based on the prescribed percentage (12% each by employer and employee) of Basic salary and Dearness Allowance only. The underlying accepted principle duly supported by a Supreme Court ruling was that only the amounts payable to permanent employees for work done should be includible in computing PF contributions and payments for specific purposes should be excluded (eg. purpose-driven allowances or reimbursements).

Sudhir Kumar, Advocate (Advocate) 12 June 2013

have you given a copmplaint to RPFC, in writing. If not do so and make a request to attend the hearing in proceedings under section 7A.

Mandar P Khire (Jr. Software Developer) 13 June 2013

Thanks Rama Chery & Sudhir Kumar for reply.

Today i ask Accounts Manager about my query! He told me before deposit money(exact amount of employee share) they divide in to 2 parts, 1 part for Employer share & 1 part in pension fund.(Statement shows)

So for first months shows amount divide into 30.5182% as employeer share & 69.4818% as pension fund. Similler for next four months with minor difference in point. if i calculate Employeer share + pension fund = employee share.

But still confuse as in Bank if i deposite some amount & by ecs it transfer in some fund then in passbook it shows clearly that person deposit xx amount & after that it transfer in to some where so easy to understand. But by reading statement of account which get by EPFO, its not clear...

Does companies really add two different amount in PF as employeer share + pension fund so it equals to employee share, each month?