Salary slip shows PF deduction, but is the full amount reaching your EPF account? How to check and report shortfalls

Salary-slip deductions do not guarantee that employers deposit provident fund contributions. Here's how employees can check the status and report discrepancies, if any.

Salaried employees usually check their salary slips to see whether provident fund (PF) has been deducted every month. However, this does not confirm that the employer has deposited the contribution with the Employees' Provident Fund Organisation (EPFO) and credited it to the employee's EPF account.

Companies covered under EPFO are required to deposit both the PF deducted from employees' salaries and their own matching contribution to the retirement fund within 15 days of the close of the month.

Both the employee and the employer contribute 12% of the employee's basic salary plus dearness allowance (DA) to EPF and the accumulated corpus can be used for financial needs after retirement. Mandatory EPF rules apply to a statutory wage ceiling of ₹25,000 under the current framework.

How to check that the status of PF deposit

You can check whether your employer is depositing PF contributions every month through the EPFO member portal. By accessing the EPF passbook, one can check the contributions credited under your Universal Account Number (UAN), which includes their contribution, their employer's contribution and Employees' Pension Scheme (EPS) contribution, if applicable.

Now, employees also have the option to keep a track of their EPF contributions on WhatsApp. You can check your balance, view last five transactions and download PF passbook without logging in to the EPFO member portal.

To use the service, members need to send a simple 'Hi' message to EPFO's verified WhatsApp number, +91 8796441800.

It is advisable to check your EPF passbook every few months and compare the entries with your salary slips to ensure the deduction amount is not less than the deposited amount. The passbook gives a month-by-month record, making it easier to spot discrepancies from the employer's end.

What if your employer fails to deposit PF

Upon checking the PF passbook, if you notice discrepancies in your employer's PF deposits, such as missing contributions, lower deposits than the amount deducted from your salary or a missing employer contribution, you have the option to file a grievance with the EPFO to seek resolution.

Affected employees can raise a complaint through the EPF i Grievance Management System (EPFiGMS) portal or submit a written complaint to the PF authorities. They may also need to provide supporting documents, such as salary slips, EPF statements and other evidence to substantiate their claims.

If an employer deducts PF from an employee's salary but fails to deposit it withing the prescribed deadline, they are liable to pay interest and penalty.

"After realizing the dues, the PF members will be given full interest for each due month and it will in no way affect the interest due to members on the contributions period. The employer shall be charged penal interest under section 7Q and penal damages under section 14B of the Act," an EPFO FAQ read.

Since the responsibility for depositing EPF contributions with the EPFO lies entirely on the employer, the employee does not lose any interest that they would have otherwise earned on the missing contributions.

The EPF interest rate for the current financial year is 8.25% per annum, computed monthly based on the running balance. The total accumulated interest is credited to the subscriber's account annually.