Jagoinvestor

June 3, 2013

Is your Company Depositing your EPF money ? Are you Sure?

I don’t want to shock you, but there are tons of cases where employer happily deducts your EPF amount from your salary, but they do not deposit it with EPFO. This goes on for years and one day you come to know that you are stuck ! , because there is no EPF money for you. Your employer has severe cash crunch or is about to shut down and now you have to run pillar to post to claim your money. The whole situation gets ugly and you feel cheated, because your company never deposited the Employee Provident Fund amount. Now you go to Police and file a case against employer. But this all can be avoided if you are careful a bit, from starting itself.

Employer not depositing EPF money

How about making sure your employer is depositing your provided fund  money into your EPF account ? Before I tell you, how you can do that, let me first share with you some REAL LIFE cases where employer failed to deposit EPF money and employees are suffering ! . These are some of the examples shared by readers of this same blog over comments section in various of EPF related articles.

Case 1 – How Abha’s company didnt deposit EPF money for 2 yrs

Dear Manish,

Thanks for such an informative post. At last i do see some hope. Here is my situation:

Worked for this company A for almost 4 years and left them in Nov 2011 as they were downsizing…yes it’s been more than a year and half of torture they have given me thus far. Company is kind of closed now as I don’t get any proper response from them, CEO is just not bothered. Company first asked us to wait for 2 months to file the claim as it is a rule, did that patiently. Later came the story of change of PF office from one (under which it was originally registered) to another and that went on for several months

They kept saying PF offices are not coordinating among themselves, the real reason was even shocking and more disappointing, PF guys were not updating because this company didn’t not deposit our PF amount for long time (2 yrs appx), they however kept deducting the same from our salaries (was surprised how come there was no annual audit by PF office and how this company could continue doing so for this long), anyways they cleared things in January this year and said we have applied again. When filed a grievance online, PF person says we haven’t received any claim whereas this X employer says they have already applied. Don’t know what the real truth is but on the basis on experiences I have… most certainly it is the X employer at fault.

Another strange thing is, when I checked by balance online in January this year it looked fine (updated up to 2012… I do have SMS proof) but from last 2 times it saying updated up to 2010, I am worried if this employer has dome some mischief here too, is it possible for a company to take back money from an employee’s PF account or it is the issue with PF website?

I don’t want to apply for my claim via options you suggested above unless I see the balance updated. Thank you so much for reading thru my query/concern. Appreciate your feedback.

Regards,
Abha

(Direct Link)

Case 2 – Balaji Company asked him to Wait till they deposit the Employee Provident Fund money

Hi Manish,

I switched jobs in August this year. Before I quit the job, I had submitted form with my previous employer for withdrawing the amount in my PF account. I had not received the amount due till December. When I called my previous employer, they told that they have not yet deposited the money and I will have to wait till March 2013.

My question is, is what my employer did legal? How frequently should the employer deposit the PF money with the EPFO? I have been working with the organisation for little more than a year now.

Thanks for clarifying.

(Direct Link)

Case 3 – Sarabjeet Kaur company not replying her because they did not deposit EPF amount

I worked in an organisation for 2 years. They have not deposited the PF amount which they used to deduct it from our account. Its been 1 year I am asking them to refund the PF. They have stopped replying to the emails and have stopped answering everybody’s call. Is there any ways I can withdraw the amount? The firm is based out in Mumbai and I used to work in Delhi Branch.

(Direct Link)

Employer can be Jailed if they do not deposit EPF money

An employer has no right to deduct the employee share from salary and not deposit it with EPF. There can be any excuse or justification for this, because its employee hard earned money. Once the employer deducts the Employee Provident Fund money from the employee salary, its their duty to deposit it with EPFO , and if they fail to do so for any reason, its a crime.

Whatever is the case, you can always complain about it with the EPFO department and the concerned officer has all the rights to proceed the legal complaint against the Employer and in the worst case, employer can also go to jail, because what they did is a criminal offence under section 405/406 of IPC .

Here is a real life case Shrikant Bangur And Ors. vs Shree Synthetics Shramik Union – where employer did not deposit the EPF money and there was legal battle going on . Here are the 3 things which you can do against your employer.

1. Complain to CVO officer – You can also email your situation and case to the CVO (chief vigilence officer) at EPFO, who is appointed by Ministry of labour for EPFO to look after these kind of irregularities. You can email them at [email protected]More at this link

2. File a Police Complaint – You can also file a criminal case, against the employer in police station which comes under the jurisdiction of your working office (not the registered one) . All you need to show them is the salary slip, which shows the EPF deducted, note that its always better to mail CVO about it anyways, so that the chances of local authorities influencing the matter will reduce.

3. Complain to  Regional Provident Fund Commissioner (RPFC) – You should also complain about the matter to the RPFC officer if under the EPFO office, which will be investigated by him/her.

How Employers Deposit your EPF contribution to EPF account ?

How exactly your EPF money gets deposited in your EPF account ? Here is what I found on this website

Employees’ PF a/cs are maintained under these two different methods are –

1) All accounts are with O/o the RPFC

Every registered employer remits the Employee Provident Fund contribution by challans to the RPFC’s Bank a/cs. which in turn gets accounted in the respective A/c No.of every such employee. And the employer submits monthly returns to the RPFC showing the details, employee wise of contribution thus remitted.

Every such money is maintained by the RPFC who in turn disburses, thro’ the employer towards refundable loans, F & F settlements together with accrued interest to the respective employees. Once in a year a ledger sheet showing the transactions of any employee for one full year is issued to the concerned. Similarly from the PF contribution pension contribution is divided and remitted to the Pension a/c. of the employees thro’ a separate A/c. code. This method is the largest.

2) The other method is called “Exempted Establishments (PF Trust)”

An employer/company who employs more 100 employees on roll is eligible to apply to the RPFC for “exemption” from maintaining the EPF under the above said (1) method. RPFC grants the “exemption orders” under certain conditions after examining various aspects. After which the Employer sets up a EPF Trust to be run by Employer (employer’s nominees & Employees’ representative (Union nominees) which manages all the contributions of employees & employer (excepting Pension Fund which is never maintained by the Trust). A set of Bye laws, in the lines of EPF Act & Rules is prepared & duly approved by the RPFC for running the Trust.

This PF Trust money is invested in the Govt.approved securities for earning the assured interest from which accrued interest to the employees’ PF a/cs is credited. The Trust once in a year prints the Employees’ PF ledger a/cs and distribute to the concerned. The Trust accounts are audited by the CA and submitted to the RPFC. RPFC also periodically inspects the Trust a/cs and oversee. Monthly, annual returns in the Forms have to be submitted. The convenience under the Trust is quick disbursement of loans, withdrawals and F & F settlements to the employees. Surplus, if any never distributed but any shortfall is made good by the employer.

(Source)

How to find out if your employer is depositing your EPF contribution or not ?

Let me share with you some steps you should follow, to find out if your company is depositing your EPF contribution properly or not.

1. First thing is the do not rely on hearsay’s here and there. It might happen that you come to know from some one that your company is not depositing your EPF money, but it might not always be true . Delays happens at times .

2. Every month on 25th , your employer is suppose to send few documents to EPFO department to intimate them on

  • Form – 2 (for new member during the month)
  • Form – 5 (detail of new joinees during the month)
  • Form – 10 (detail of left employees during the month)
  • Form – 12 – (Details of money deducted from employees salary)

3. The best thing is to first contact your employer and ask them for a copy of these forms for last 2-3 months, do double check if they deposited the money or not.

4. As per my opinion, the best way for a common man and most convenient option is to file a RTI against EPFO and ask them all these questions . Mention your EPF account number, your employer Code and simply ask if your employer has been depositing your contribution or not.

Conclusion

Mostly the big size employers might be depositing the Employee Provident Fund money properly on time, but some of the companies which are small sized or whose owners and management teams are unethical might be into these illegal activities of not depositing employees hard earned money. Its always a good idea to spend some time to be assured, in-case you feel your company is one of those who are not depositing EPF amount with EPFO 🙂

Do you know of any case like this ? Also Please share this article with more and more people

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Akhil
Akhil
7 years ago

Hi Manish,

Are these above mentioned things applicable for US based companies in India? Though they have promised us about the PF money I am not so sure if they are depositing the money every month.

Thank you
Akhil

Siddhesh
Siddhesh
7 years ago

Hi Manish,
Good Article !
I would like to ask you that my company has been closed on March 2016 & now operating with different name.
While frequent layoff due to financial crisis & downsizing the company could not deposit the pf amount in respective employees account regularly. Also they were giving excuse for delaying in salary schedule since August 2014. Suddenly they closed the company & announced that employees have to sign new contract where every employee will be treated as consultant & will be not entitled for employment benefits like pf,paid leaves & job security. They have not given proper notice period or compensation so that employee can think about the accepting or rejecting an offer as they hold salary every month. Hence employees have to sacrifice all the employment benefits due to new contract.
I worked for the company almost 3 years & left them in October 2016 as there is more than one month delay in salary. Being only bread-earning person of the family it was difficult to manage my financial commitments therefore I decide to quit the job & gave proper one month notice expecting smooth transactions & time to find new job.
Before I quit the job, I had submitted pf form with my employer for withdrawing the amount in my PF account. I had not received the amount due till now nor a salary (consultant fee) for the month August 2016, September 2016 & 6 days of October 2016.
After closing the company first asked us to wait for 2 months to file the claim as it is a rule, did that patiently. Later came the story of they did not deposited EPF amount in pf account for more than year. When asking about it they kept saying PF offices are not coordinating among themselves, the real reason was even shocking and more disappointing, PF guys were not updating because this company didn’t deposit our PF amount for long time (more than 1 yrs approx), they however kept deducting the same from our salaries (was surprised how come there was no annual audit by PF office and how this company could continue doing so for this long).
While asking they blame on consultant appointed by them for the matter & reply that they will show my updated copy of UAN passbook to the consultant & updates will be informed to me. However, nothing happened till date.
Till now they have not able to deposit all the pf amount for employees which is already deducted from our salary.
Full & final settlement for the previous company is still not done after six months working as a consultant with the name changed company. Also they promise that they will credit salary for August 2016 with other employees & full & final settlement with the new company will be done after 21 days of last day of the employment; but till date they have not credited salary. Almost all the employees received salary for August as well as September 2016. However, employee who left the company did not received salary till date.
I would like to know what action I can take against the employer / company for not paying consultant fee (salary) / not depositing EPF amount to our pf account & not forwarding withdrawal forms of EPF to the concern authority.
Regards,
Siddhesh
9869180193

Arundhati
Arundhati
7 years ago

My company which is a startup with less than 20 employees deducted pf from my salary, as per the terms of the Employment Agreement, but did not deposit or register with PF. The employees filed a complaint with PF Department. They visited the office and met the Director who told them that he did not register as there was less than 20 employees. The Inspector now says that he cannot assist us as there was never 20 employees. Can the Inspector say so? What remedies are available to me now?

Lalit
Lalit
7 years ago

Worked till June 2016 in a organisation and the time I left the organisation, my E-Passbook updated till Dec-15. I checked with establishment information search service to check whether my PF deposited or not and I got that company deposited my PF of Jan-16 and June-16 not updated in e-passbook though. I am in need of money so want to withdrawal the same please suggest what should I do to get the full PF amount.

Lalit
Lalit
Reply to  Lalit
7 years ago

PF deposited for Jan-16 and June-16 (2 months only)

Lalit
Lalit
Reply to  Jagoinvestor
7 years ago

What should I ask in RTI ? Ask them to provide the details of payment by organisation or anything specific ? Please help !!

SankaramariSelvam
SankaramariSelvam
8 years ago

Hi,

I worked in Cognizant Technology solutions, Chennai and relieved on June 26, 2016. As of now, no response regarding my PF. Company says they have submitted on April 2016 and PF office will take another 6 to 9 months. Is it true? Will PF withdrawal take more than a year?

If the company cheats, how could I escalate?

Abhijit
Abhijit
8 years ago

I got a query: My employer is deducting both employers and employees money from my salary itself (PF amount is getting deducted twice every month). Is it the rule in case of EPFO ?

FirdausAnjum
FirdausAnjum
8 years ago

I’m presently working in a school for past 1 year and now I have resigned due to some critical circumstances. Now my employer is not ready to give my PF no. They are saying they will provide it in the last working day of this school. I will go back to my native place from here,i.e. from Coimbatore to Kolkata which quite far off,hence I will not be able to come back here for any kind of paper work or help if I need so. Also they are purposely ending my session 1 week before the completion of my 1year. Thus they are saying your PF is dissolved still they will provide me the PF number on my last working day. Its a full time cheating I feel and thus I need your help. I want to know what should I get from this school before I leave this place ,along with the PF number so that I can withdraw my PF amount from the PF office.????

firdausanjum
firdausanjum
Reply to  Jagoinvestor
8 years ago

Thanx for replying .they don’t provide us any salary slip n that’s a fraudulent act.I’m about to leave this school in a months tym.i just want to know wat papers I shud collect before leaving the school so dat I can retrieve my pf amount along with the pf number????plz reply.

firdausanjum
firdausanjum
Reply to  Jagoinvestor
8 years ago

So if dey are not depositing d EPF and give me a fake pf number,wat shud I do?file a RTI in EPFO? will that help me retrieve my amount.?

firdausanjum
firdausanjum
Reply to  Jagoinvestor
8 years ago

The management is doing it purposely so even if I bring it to their knowledge its of no use.they will have an excuse ready.n after getting pf number Il be out of the school.so is there no way to retrieve the amount???

SumanBakshi
SumanBakshi
8 years ago

Hi Manish,

Need one clarification. i have joined a new company in June 20th,2015. They deducted X amount as PF from June salary. Obviously this amount is less as my working days are very minimum in June. From July onwards my PF deducted as normal. But when i checked my EPFO portal passbook i found that for June,2015 there is no such entry. Entry started from July,2015 and the amount showing for July is actually which was deducted from my June salary (less amount). So my query is , whether company deposit amount for a particular month reflect in subsequent month’s entry in passbook ? If my question is not clear to you please let me know but please guide me otherwise i will loose my hard earned money.

Rao
Rao
8 years ago

Dear Manish,
i have a query. recently i joined an organization which is a startup company. in the offer letter they showed PF as one of the items, but during payroll process, i realized that they don’t have PF subscription. they are simply reimbursing the PF amount as part of salary instead of deducting it.
To me, it looks like a cheating. Ideally, they should be deducting the PF and maintain PF account number and all other procedures, but they did not do it like that.

can we complain this also to EPFO CVC?

vikash
vikash
8 years ago

dear manish, nice article…. i have one serious trouble in understanding one more thing that what shall be course of action for those people where the company has shut down and there is no one in the HR to contact to… and you need to claim your pf money and you are no longer in job but started a business of own.
I have my UAN no, but as my company has shut its operations no one is there to help me to claim my EPF…. What should I do?

Tushar Jirage
Tushar Jirage
8 years ago

I am working in an organization .from January 2015. To current my basic salary 10800 my company deduct 25 % EPF from basic .and company give me payment slip but there no mention my EPF no but my deductin done from my salary I am ask to company about my EPF no company tell me we will submit from and also he not give me EPF no plz tell me solution

Rahul
Rahul
8 years ago

Is there a way to know your EPS balance? (Pension scheme) directly from EPFO?

sameer
sameer
8 years ago

7 months i worked for the company from 1 jan to 30 july-15, now i left, but company not providing my PF number, how its possible he is depositing pf and he dont have pf no. he is asking time and time for pf number, what should i do, how can i know that company was depositing or not?

Ankita
Ankita
8 years ago

Is it legal for a company to deduct 16%as of??

Pooja
Pooja
9 years ago

Thanks to you for replying me. You suggest me that Now I should take action through RTI against my employer. This is a private organisation where I work. Will your suggestion work n them.

thanks
Pooja Gupta

Pooja
Pooja
9 years ago

Sir, The cases which I have read above are not fulfuling my quries. What should I do contact you ? Please suggest
Sir, the amount wich my employer is deducting as EPF amount, is not equal to the amount which deduct from my salary. He submit less thand which he deduct.
What should I do ?

chetan
chetan
9 years ago

hi manish,

i have a query, that most of the employers deposit only the Minimum employer share. isn’t there a rule for this. for Example my pf deduction is 7000/month but my employer deposit only 289 Rs.
any suggestion /advise on this

dinesh kurane
dinesh kurane
9 years ago

I worked in an organization fromApril 2009 to August 2011.Company allotted me PF account no.(as per payslip) & deducted PF amount from my salary regularly for entire period of my service. I applied for PF withdrawal after resignation from organization. Since then I have not received my PF.
I am continuously following with HR but not getting proper feedback. As per reply to my grievance on EPFO portal & RTI application with EPFoffice, PF account No. alloted to mr belongs to someone else whose case has already been settled in Feb 2012.I have sent registered letter & reminder to HR & CEO of company to explain this but haven’t got any reply.
I also requested to PF office through grievance on EPFO portal to take necessary action against the organization for not depositing PF amount deducted from my salary for entire period of service ,for providing false PF account number & giving wrong information regarding PF withdrawal. But EPFO is asking for correct A/C no. & has asked to contact employer for the same.
I filed an RTI with EPFO to get information for Form 3A and 6A and Form 12A but EPFO rejected to provide information saying its personal & cant be provided.
I also submitted written letter to RPFC about 6 months back requesting them to take action against company but till the time i havent any reply from EPFO(I have acknowledgement copy of this)

Also i have send two notice to company through my lawyer but company has not rplied.

I visited local Police stn,they refused to file FIR in this case.

Please help me, i want my PF because its hard earned money.

Roopali
Roopali
9 years ago

Sir mujhe Pf Office me bhejne latter type karna hai hamne Agust month 2013 me Epf production na hone k wajah se pay nahi kliya tha kis type ka latter submite karu pls help me sir

Chandan Dey
Chandan Dey
10 years ago

Dear Mr. Vishal Sharma, Date: 06/08/2013

This is to inform you that I am already submit my P.F form in Indico Accounts before 5 (five) month. I was several times called & mails Indico Accounts & Admin but they are informed me PF form in your table.
You are not received my calls, mails & appointments. So we are requesting to you kindly give me my F.P form with signature & all formalities if without signature all formalities.
This is your responsibility (Mr. Vishal Sharma) because you leave my jobs on 7 Jan-2013 at 3.30 P.M in our Cabin.

Please give me date & time when I come Indico Motors for receive P.F form.

Regards:
Chandan Dey, Kandra