I am a software engineer, i worked in two organizations in those two organization provident fund was not deducted they credited me complete salary to bank account by monthly . Recently i joined a new company in hyderabad. They have offered me 1,92000 per year that is i should have to get 16k per month .

But am getting only 14314/- am worried about this. I asked accountant to send my payslip he provided that,Those details are like this:


I asked him that my salary is 16k but why did you mentioned as 15232/- And he replied there is pf deduction from your basic salary of 12%. I wonder that the mentioned amount is 768 but the deducted amount is 1536. An he is saying that you can't check your PF balance until 6 months i don't know the reason Please let me know is my new company is doing some sort of scam or what ?is the deduction process is correct?


1 Answer 1


There is no scam. Different companies have different salary break-ups.
PF is calculated at 12% of Basic salary of the Employee and a match 12% contribution by Employer

This company when the offered you job and mentioned the salary as Rs 16,000/- it was the total cost to the company. Ideally they should have mentioned that your salary will be 15232/- and Employers contribution to PF is Rs 768/-. They reason they mention as Rs 16,000/- is because if other company had not opted for PF, and they offer you Rs 16,000/- both amounts are same.

Now that your salary is Rs 15232, the company contributed Rs 768/- to PF and an equal part is deducted from your salary and also contributed toward the PF fund, ie Rs 768/-. The employer's contribution of Rs 768 cannot be shown in salary slip as it is mandatory contribution by law.

So your PF will have a contribution of Rs 768 + 768 every month. The employer's portion is further split into Pension fund should be around (Say) Rs 68 in your case so your Pension Fund will looks like 768+700 and FPF fund will look like 68.

Don't worry having a PF is very good. Ensure that you keep track of PF's and transfer them on job changes.

  • Thanks for prompting response.. And what about this thing "Accountant says that i can not check my pf balance for 6 months" why so ??
    – ursgtm
    Commented Oct 10, 2014 at 14:17
  • Well the PF statement is generated by Government PF Office. They normally generate statements once a year. With UAN things are now faster.
    – Dheer
    Commented Oct 10, 2014 at 15:46

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