I recently joined an organization and was surprised to find the "Employer Contribution" of the PF mentioned as part of the "Offer Letter".
Could someone advice? According to my knowledge, it is mandatory for organizations to contribute to the PF a/c of an employee (even without mentioning the same; and generally done to attract a gullible employee (who thinks that a company is doing a favour by making the contribution?)).
Please confirm if mentioning the same meets/violates statutory laws by the Govt. of India?
Most of the employers (especially in MNC) mention PF contribution of the employer in their offer letter with other benefits like Medical, Graduity etc to arrive at the Cost to Company (CTC) to employee. CTC is quiet common these days as it provider an apple to apple comparison to the employee when he needs to finalize on more than one offer.
By mentioning the PF contribution by the employer in offer letter does not violate any statutory law. But not deducting & depositing the PF amount timely is a violation.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.