For many employees, the term “PF deduction” is just a line item in their salary slip. Something they rarely question.
But it’s directly tied to your retirement savings and long-term financial security. So, how do you know if your employer is deducting it legally? And more importantly, is it being deposited in your account at all?
Understanding this doesn’t require legal training. It just needs a little attention to detail and knowing where to look.
Let’s start by understanding whether you even qualify for PF deduction.
| Criteria | Explanation |
|---|---|
| Type of Organisation | Any company with 20 or more employees must register under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. |
| Employee Eligibility | If your basic salary is ₹15,000 or more, PF is usually mandatory unless you opted out before joining. Even those earning less may be covered if the employer registers them. |
| Contribution Rule | 12% of your basic salary is deducted from your side. The employer also contributes 12%, but it’s split across PF (3.67%), pension (8.33%), and other funds. |
It’s common to see the full 12% deduction on your payslip—but not all of that goes directly to your EPF balance. The law allows the employer to divide its share between EPF and EPS (pension), as per the EPF Scheme, 1952.
To ensure things are being done properly, you can verify your PF status through a few reliable steps.
| Step | What You Should Do |
|---|---|
| Payslip | Check if there’s a PF deduction of around 12% from your basic pay. |
| UAN Portal | Log in at EPFO Member Portal using your Universal Account Number. You’ll see monthly employer and employee contributions here. |
| Passbook | Visit the Passbook Portal to check if the employer is actually depositing the money monthly. |
| SMS Alerts | EPFO sends SMS updates after contributions. Make sure your UAN is linked to your mobile number. |
If there’s a mismatch—like deduction on your payslip but no entry in the passbook—it could be a sign that your employer is withholding your funds illegally.
If you’re confused about whether you’re even under a valid contract, read our guide on What Is a Legal Employment Contract and What It Should Contain.
A few more signs can raise red flags. If your employer refuses to give you your UAN, doesn’t register you despite being eligible, or shows a false lower salary just to avoid PF, you might be dealing with a violation.
The law is quite clear: Section 6 of the EPF Act mandates both employer and employee contributions. Non-compliance can even lead to penalties and imprisonment under Section 14 of the same Act. But enforcement often starts with you noticing what’s off.
If your employer isn’t paying your salary at all, here’s how to File a Complaint for Unpaid Salary.
When you realize your PF might not be handled properly, don’t panic. The law is on your side, and there are clear steps you can take.
The first step is to confirm if your Universal Account Number (UAN) is active. You can activate it at the EPFO UAN Portal. Once activated, login and download your PF Passbook.
This shows monthly deposits made by both you and your employer.
If your payslip shows deductions but your passbook doesn’t reflect matching entries, that’s a red flag. Under Section 6 of the EPF Act, 1952, it is mandatory for employers to contribute and deposit the amount before the 15th of the following month.
If not, it may attract penalties under Section 14 of the same Act.
If the employer doesn’t respond or delays clarification, file a complaint via the EPFO Grievance Portal with your UAN and supporting documents. You can also write to the regional PF Commissioner or Labour Department.
If needed, consult a labour lawyer, especially if multiple violations are involved (e.g., no appointment letter, illegal deductions, or salary delays).
Also, if you’re wondering about your legal rights after quitting, read our guide on How to Resign Legally – Notice Period, Clearance, and Final Pay.
Many employees don’t check their PF status until they leave the job or need to withdraw. But staying updated is the only way to make sure your hard-earned savings are safe and growing.
FAQs
1. What is the minimum PF deduction from my salary?
12% of your basic salary is the standard employee contribution under EPF rules.
2. Can my employer deduct PF but not deposit it?
No. That’s illegal under Section 6 and 14 of the EPF Act. You can report such violations to EPFO.
3. What happens if my employer doesn’t give me a UAN?
UAN is mandatory. Ask HR to generate it. If they don’t, raise a complaint on the EPFO grievance portal.
4. Can I opt out of PF?
Only if your basic salary is over ₹15,000 and you opted out at the time of joining. Otherwise, it’s mandatory.
5. Where do I check my monthly PF contributions?
Log in at the EPFO Member Portal and download your passbook.
