My company has recently got registered as unlisted private limited company. From November 2018 they will start deducting EPF from my salary. I have some doubts that I want to get clear these are:
- The company’s actual strength is not 20 or more than 20 employees so can they deduct epf(though they have created dummy accounts in respect to salary)?
- My salary is 18k per month so if I conclude the deduction should be 12% on my basic pay, but here they will deduct 24% on my basic pay which if I consider my expense and all would be difficult for me to survive for a whole month, when I ask the same to them they told me that many companies do the same. Can you please tell if that is legal or not or if I can question this proceedings of there’s?
- Also earlier in my offer letter they have mentioned (Your gross annual salary on the basis of Cost to the Company will be Rs.1.20 lakhs per annum, all inclusive.) so does this include all the PF and ESI benefits paid by employer?
Any help from your end will be very beneficial for me as I am about to raise these things and the information in them would made my decision whether to question or not.
- If employee strength is more than 20, then yes they deduct EPF.
- They may be showing 24% in your CTC as 12% of their part is CTC for hiring you. Hence, as per rule, it is 12% from employee and same contribution by the employer.
Okie Thank you so much.
Can you please also tell me if this EPF is based for pvt. ltd. company or for any company/firm/proprietorship who has 20 or more than 20 employees?