PF Deductions – What to Do If Employer Doesn’t Deposit It

Provident Fund (PF) is a mandatory retirement savings scheme for the eligible employees of India. The employers are required to deduct 12% of the employee's basic salary (plus their contribution) and deposit the same with the Employees' Provident Fund Organisation (EPFO) on a monthly basis.

If the employer deducts the PF but does not deposit it, this act is considered illegal and a punishable offense under the EPF Act, 1952.

Online verification of deposits can be done from the EPFO portal or through the UMANG app. Discrepancies can be reported to EPFO through its grievance portal, or one can visit the local office. Defaulting employers are subjected to fines, interest payments, and even imprisonment.

FAQs

1. What is PF?

PF (Provident Fund) is a retirement savings scheme managed by the EPFO.

2. Who all are covered under PF rules?

Any company with 20+ employees must provide PF to those eligible workers.

3. PF deduction?

12% of your basic salary, matched by the employer.

4. How can I check my PF balance?

Through the EPFO Member Portal, UMANG app, or SMS/missed call service.

5. What if deductions show in my salary slip but not in EPF records?

That means your employer hasn’t deposited the PF.

6. Is non-depositing of PF illegal?

Yes. It’s punishable under the EPF Act.

7. What first step should I take?

Collect salary slips and proof of deduction, and then check your PF passbook.

8. How to lodge a complaint online?

By taking to the EPFiGMS grievance portal (https://epfigms.gov.in/grievance/grievancemaster).

9. Can complaints be made offline?

Yes, by taking proof and visiting the nearest EPFO office.

10. What actions can EPFO take?

EPFO can recover dues with interest and penal damages and file legal cases against the employer.

11. Can I also file a complaint with the police?

Yes, under BNS Section 316 (criminal breach of trust).

12. Is my money going to be lost?

Not at all; EPFO will recover it from the employer.

13. Can I withdraw PF if not fully deposited?

You can withdraw what has been deposited, and the extra will be added after recovery.

14. Is there any interest on delayed payments for PF?

Yes, employers will be paying interest and damages.

15. Are small companies exempted from PF?

Only if it has fewer than 20 employees (and some states have exceptions).

16. Can any employee put himself out of PF?

Only if he is joining PF for the first time with a basic salary of more than ₹15,000.

17. How long does recovery usually take?

It depends on EPFO's actions, generally a few months.

18. What documents would be essential in the project at hand?

Salary slips, PF account number, and employer details.

19. What is the EPFO helpline anyway?

https://www.epfindia.gov.in/site_docs/PDFs/Contact_PDF/ro_pro.pdf

20. Where does one check the status of one's complaint?

On the EPFiGMS portal, using the grievance registration number.