PF Knowledge: How to determine whether your salary is eligible for PF deduction or not..

Given the rapid succession of changes the Employees' Provident Fund Organisation (EPFO) is making to PF account rules, anyone could easily get confused these days—especially private-sector employees whose retirement funds rely heavily on PF. Recently, the EPFO ​​introduced another change by raising the ceiling for PF account deductions. Freshers, in particular, often face confusion regarding when PF deductions will start on their salaries and where or how to lodge a complaint if a company fails to deduct or deposit the PF amount.

First, understand that regardless of the size of your salary, PF will certainly be deducted. Under EPFO ​​regulations, there is no minimum limit for PF deductions; however, a maximum limit has been established. Currently, the maximum limit for PF deduction is ₹15,000. A proposal has recently been made to raise this limit to ₹25,000. While this has not yet been finalized, its implementation would enhance social security and pension benefits for employees.

**What are the minimum and maximum PF limits?**
The EPFO ​​has not set a minimum PF limit for private-sector employees. This means that if an employee's combined basic salary and dearness allowance (DA) amounts to ₹5,000, 12% of that sum will be deducted as PF, requiring a monthly deposit of ₹600 into the PF account. In essence, there is no floor for PF deductions. PF rules dictate that the company must match the amount deducted from your salary and deposited into your account with an equal contribution of its own.

**How ​​much money is deposited into the PF account?**
PF account rules state that 12% of the total amount derived from an employee's basic salary and DA is deducted and deposited into the PF account. The company contributes an equal amount to the employee's PF account. Consequently, a total of 24% of the employee's basic salary and DA is deposited into the PF account. However, not all of this money goes directly into your PF account; instead, 8.66% of the employer's contribution is allocated to the pension fund. The employee's entire 12% contribution goes into the PF account, while 3.34% of the employer's contribution is also deposited into the PF account.

**Will PF not be deducted if the salary exceeds ₹15,000?**
While there is no minimum limit for PF deduction, there is a maximum limit. Currently, this limit is set at ₹15,000. Consequently, for an employee with a basic salary of ₹15,000, ₹1,800 will be deposited into their PF account monthly, with an equal amount contributed by the company. However, this does not mean that PF will not be deducted for those earning a basic salary above ₹15,000. PF will still be deducted, but the calculation will be capped at the ₹15,000 limit. This means that even if your combined basic salary and Dearness Allowance (DA) amount to ₹1 lakh, only ₹1,800 will be deposited into your PF account, with the company contributing an equal amount.

**How ​​to check if the company is deducting PF**
Every company provides a salary slip to its employees, which lists the PF account number and UAN (Universal Account Number). If you are unsure whether your company deducts PF, you can easily verify this by logging into the official EPFO ​​website. You will need your UAN for this; by accessing your PF passbook using your registered mobile number, you can view the deposited amount.

**What to do if the company fails to deposit the money**
It is important to know that companies are required to deposit the deducted PF amount into the account before the 15th of the following month. For instance, the contribution for September must be deposited by the company before October 15th.
If a company fails to do this, you can file a complaint against it. If the complaint is found to be valid, a penalty may be imposed on the company.

How to file a complaint against the company
First, visit the official EPFO ​​portal, EPFiGMS.
On the portal, select the 'Register Grievance' option and choose 'PF Member'.
Next, enter your UAN, mobile number, and other required details.
In the grievance section, state that the company deducted your PF contribution but failed to deposit it into your EPF account.
You will need to attach supporting documents such as a salary slip, bank statement, or a copy of your passbook.
Once submitted, your grievance will be registered, and you will receive a complaint number. You can use this number to check the status of your complaint.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we modified it for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.