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?


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
    Oct 10 '14 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
    Oct 10 '14 at 15:46

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