What can I do if my employer deducted PF but did not deposit it?

Question

My salary slips show PF deductions every month but the amount is not reflecting in my EPFO account. What should I do? What I am unsure about is the procedure — where the application goes, what it costs, and how long epf non-payment matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to epf non-payment here is Employees' Provident Funds and Miscellaneous Provisions Act 1952, Section 6, EPF Act 1952, Section 14 and Code on Social Security 2020. The detail below matters, because Employees' Provident Funds and Miscellaneous Provisions Act 1952, Section 6 draws the line differently depending on what your documents show.

Section 6 obligates the employer to deposit both the employee's and employer's contribution with EPFO by the 15th of the following month, and deducting from salary without depositing is a serious breach.

Non-payment or delayed payment of PF contributions is a criminal offence under Section 14, punishable with imprisonment up to 3 years, and the employer also becomes liable for damages under Section 14B and interest under Section 7Q.

You can check your PF passbook on the EPFO portal or UMANG app to confirm whether contributions are actually being credited, and mismatch is strong evidence of default.

A complaint can be filed with the Regional Provident Fund Commissioner, who has powers to conduct inquiry under Section 7A and recover dues as arrears of land revenue.

Employees can also lodge a grievance on the EPFiGMS portal and simultaneously report the matter to the local police for criminal breach of trust if deduction from wages without remittance is established.

What to do next: 1) Download your PF passbook and salary slips to show the deduction versus non-credit discrepancy; 2) File a written complaint with the Regional PF Commissioner's office having jurisdiction over your employer; 3) Lodge a grievance on the EPFiGMS portal with supporting documents; 4) Consult a labour lawyer if the employer does not remedy the default within a reasonable time.

If you are unsure whether your facts fall inside Employees' Provident Funds and Miscellaneous Provisions Act 1952, Section 6, that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in labour law.