Asked by: Seryozha Plogmann
personal finance retirement planning

What happens if PF is not deposited by employer?

Last Updated: 22nd January, 2020

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If you still find your employer hasnotdeposited the deducted PF with the trust or EPF,you canfile a complaint with either Regional ProvidentFundCommissioner or a criminal case against youremployer withthe police or complain to the chief vigilanceofficer appointed bythe labor ministry.

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In this manner, what if your employer does not deposit PF money?

The PF amount, if not deposited withthePF department, then only your previousemployercan be held liable to pay. To know if youremployer isdepositing your EPF contribution you can askfor acopy of Form 12, which gives the details ofmoneydeducted from an employee'ssalary.

Furthermore, can a company stop your PF? Therefore they don't deposit anything withPFcommissioner's office. Nobody can stop your PF. Youjusthave to fill up the form and submit to the respectivePFdepartment. or when you join new company just saytransfermy pf to the old account and then from thenewcompany you can withdraw pf.

Likewise, is it mandatory for employer to pay PF?

It is mandatory for an organisation employingmorethan 20 people to register with EPFO. While contributingtowardsEPF is mandatory for those earning basicwages of upto Rs 15,000. Those earning basic wages more than 15000per month,EPF contribution is notmandatory.

What is the minimum PF contribution by employer?

What is the minimum percentage ofPFcontributions by an employer in India, if yourbasic payis more than Rs. 15,000? While employees contribute 12% ofthebasic pay to EPF, the employer contributes8.33%towards the employee's pension scheme and 3.67% to theEPFitself. Employees also make matching12%contribution.

Related Question Answers

Florindo Kohlgraf

Professional

Can employer stop PF withdrawal?

To withdraw your money, you may now use 'UANbasedForm 19' and in effect bypass the employersignaturerequirement. Most employees who have withdrawntheirprovident fund (PF) amount know what apainfulexercise it is. So make sure that as an employee, you meetthesetwo conditions for any PF withdrawal infuture.

Faber Benevolensky

Professional

Is PF mandatory for salary above 15000?

Yes, contributing to EPF is mandatoryforthe employees who have a basic salary plusdearnessallowance is up to Rs.15,000 (earlier it wasRs.6,500). Andthose who are earning above Rs.15,000may contributevoluntarily. In case, you have been a member of EPFOonce, then youare not allowed to opt out of thescheme.

Pastora Leger

Professional

What is the penalty for late payment of PF?

Penalty for Delayed Payment
S.No Time-Period of Delay Rate of Penalty
1 Delay for up to 2 months 5% per annum
2 Delay ranging from 2 months to 4 months 10% per annum
3 Delay ranging from 4 months to 6 months 15% per annum
4 Delay exceeding 6 months 25% per annum (It may correspondingly go up to 100%)

Batirtze Rata

Explainer

Is PF compulsory for companies?

Now, it is not compulsory forevery employee topayProvident Fund. Employees having basic salary morethan15,000 have an option to opt out of PF at the timeofjoining the company. It is mandatory for theemployerto contribute 12% of employee's salary plus dearnessallowance toEPF account of the employee each month.

Isamara Angendohr

Explainer

Is it mandatory to deduct PF from salary more than 15000?

If the PF wage of an employee is lessthanRs 15,000 per month: The minimum mandatoryPFcontribution (and deduction) shall be 12% of theactualPF wage. So yes .PF deduction ismandatory forsalaries more than 15000. No its notmandatory to deductPF if salary is more than15000.

Antera Zaranclona

Explainer

What is minimum basic salary for PF deduction?

The minimum mandatory PF contribution(anddeduction) shall be Rs 1,800 per month (12% of Rs15,000).b. If the PF wage of an employee is less than Rs15,000 permonth: The minimum mandatory PFcontribution (anddeduction) shall be 12% of the actualPFwage.

Kande Cotas

Pundit

Nelle Campos

Pundit

How much is the employer contribution in PF?

While employees contribute 12% of the basic paytoEPF, the employer contributes 8.33% towardstheemployee's pension scheme and 3.67% to the EPFitself.Employees also make matching 12% contribution.Additionally,employers also pay 0.5% towards EDLI, 0.65% asEPFadministrative charges and 0.01% as EDLI handlingfee.

Yohara Godon

Pundit

What is new PF rule?

Provident Fund rule change: The SupremeCourtruled this week that employers must consider specialallowancespaid to the employees as a part of the "basic wage" fordeductiontowards provident fund. New Provident Fundrule: Bothemployer and the employee pay 12 per cent of basicwages eachtowards contribution to EPF.

Valentina Cotos

Pundit

Will I get interest on PF after resignation?

Therefore, even after leaving one company,thePF account continues to earn interest and isnottermed inoperative PF account till such a situationrisestill age 55. However, during the period when contributionsdon'tget credited to the PF account, theinterestrate earned does not remain tax-free.

Merced Carlos

Pundit

What is the salary limit for EPF?

Employees drawing less than Rs 15000 per month havetomandatorily become members of the EPF. However, anemployeewho is drawing 'pay' above prescribed limit (atpresent Rs15,000) can become a member with permission of AssistantPFCommissioner, if he and his employer agree.

Romona Oehmigen

Teacher

Is PF mandatory 2019?

In its ruling on 28 February, 2019, theSupremeCourt has held that 'allowances', paid by employer toitsemployees, will be included in the scope of 'basic wages' andhencesubject to Provident Fund contributions.

Djillali Reiss

Teacher

Is esic compulsory?

Yes, as explained in other answers, ESIismandatory if the employee is having salary of less thanorequal to 21000 and the establishment has 10 or moreworkers.However, while counting workers only permanent employeescount, nothourly/daily wage contract workers.

Adonino Terreu

Teacher

Is PF and ESI mandatory?

Just like ESI, the Employees ProvidentFund(EPF) is also a contributory fund in which both theemployee andemployer contribute amount. EPF is a compulsoryandcontributory fund for the Indian organizations under“TheEmployees' Provident Fund and MiscellaneousProvisions Act1952”.

Lucretia Mohren

Teacher

Is employer PF contribution part of CTC?

Employer Provident fund Contribution
Most employers contribute 12% (calledPF)of basic salary every month to employee's Providentfundaccount, shown in CTC. Employee also contributes 12%(calledVPF). Employer PF is part of CTC not shown onSalarySlip.

Jerrell Bezares

Reviewer

Why is PF important?

A provident fund is created with a purpose ofprovidingfinancial security and stability to employees. The primarypurposeof PF fund is to help employees save a fraction oftheirsalary every month so that he can use the same in an eventthat theemployee is temporarily or no longer fit to work oratretirement.

Adah Tcheh

Reviewer

How can I withdraw my previous employer PF?

Yes, you can withdraw your EPF balance now.Youcan contact your previous employer and fill up thenecessaryforms. Alternatively, you can also file yourwithdrawalrequest directly with EPFO if you have a UniversalAccount Number(UAN) and meet certain requisites.

Saaida Hazov

Reviewer

Can I withdraw money from PF account?

The money can be withdrawn onlyafterretirement. Partial withdrawal from EPF accountsispermitted in the case of an emergency such as medicalemergency,house purchase or construction, and higher education.TheEPF subscriber has to declare unemployment in ordertowithdraw the EPF amount.

Xiujuan Gorzyck

Reviewer

How do I withdraw my employer shares?

Existing rule : You can withdraw up to 90% ofyourentire PF balance (employee share + employershare) onattaining 54 years of age or within one year beforeactualretirement, whichever is later. Employer contributionwillcontinue to accrue and can only be withdrawn atattaining 58yrs.