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Pune: PF Department Files Case Against IT Company For Misappropriating Employees Contribution


Contents News/Article  Date :  16th November  2022

Relating to which  Act   The  Employees Provident Funds & Miscellaneous Provisions Act, 1952

Applicable to which State :  All the establishments in the States with PF coverage

Type :   :    Pune news paper report asking for this important news to be shared

Pertains to   employers and employees

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UNDER EPF – The contributions are payable on maximum wage ceiling of Rs. 15000/-

The employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate.

To pay contribution on higher wages, a joint request from Employee and employer is required [Para 26(6) of EPF Scheme]. In such case employer has to pay administrative charges on the higher wages (wages above 15000/-).

For an International Worker, wage ceiling of 15000/- is not applicable.


UNDER EPS – Contribution is payable out of the employer’s share of PF and no contribution is payable by employee.

Pension contribution not to be paid: When an employee crosses 58 years of age and is in service (EPS membership ceases on completion of 58 years).

When an EPS pensioner is drawing Reduced Pension and re-joins as an employee. In both the cases the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension contribution is not to be diverted and total employer share goes to the PF).

In case an employee, who is not existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution part will be added to employee share,


EPF – In all other cases Pension Contribution is payable. A member joining after 50 years age, if not a pensioner does not have choice of not getting the Pension Contribution on grounds that he will not complete 10 years of eligible service.

The social security cover is applicable till he/she is a member.

For International Worker, higher wage ceiling of 15000/- is not applicable from 11-09- 2010.


Note:– In case an existing EPS member (as on 01-09-2014)whose Pension contribution was paid erstwhile EPS wage ceiling of 6500/- contribution to contribution above Rs 15000/- wage ceiling from 01-09-2014 he will have to give a fresh consent and an amount of 1.16% on wages above 15000/- will have to be contributed by him in pension Fund (A/C No 10) through the employer.  However, this PF rule of paying an amount of 1.16% is recently quashed by the Supreme Court and is no longer valid as the Court has ruled that this payment is no longer valid.

In this instance, there has been a fraud committed by a company in Pune by not paying the PF dues of the employees into the PF fund and prima facie, it has been found that indeed PF payment has not been made to the EPFO and the case in being registered and further investigations are on.


Subject :   Pune: PF Department Files Case Against IT Company For Misappropriating Employees Contribution


For greater details, appended below is the complete news item


Pune: PF Department Files Case Against IT Company For Misappropriating Employees Contribution


 Pune, 16th November 2022: The Employees Provident Fund (PF) office, Pune, has registered a case against a private IT company and its directors after conducting an investigation which found that the company had misappropriated Rs 3.82 Crore of PF contributions of its employees.

A complaint was received from an employee of an IT firm by the name of Clover Infotech Private Limited to the effect that the company was not paying the PF of its employees.

A team conducted a search at the premises of the firm at Galaxy Society, Boat Club Road, Pune and investigated the basis of the documents seized. The investigation based on the records revealed that the said establishment misappropriated the PF dues of its employees to the tune of Rs 3,82,49,556.

A case under section 7A of the PF Act has been registered against the company and its directors. Further action for the prosecution of the directors is also underway.

PF Commissioner’s office is taking cognizance of complaints duly substantiated with evidence. Aggrieved employees may file a complaint with the Provident Fund Commissioner Office against the defaulting company/contractors, if not extending the benefits of PF Schemes.

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