My friend’s new company doesn’t deduct PF. Is this a red flag or even legal?
Hey everyone,
A close friend of mine is about to start a new job, but during the Offer release process, they realized the company does not deduct PF.
My friend is a bit confused (and honestly, so am I). On one hand, the take-home pay looks higher, but we’re worried about the long-term implications. A few specific questions for the experts here:
Is this legal? I thought PF was mandatory for all companies in India once they hit a certain headcount (The Headcount is currently under 50 I think)
Is this a red flag? Does a company skipping PF usually mean they are cutting corners elsewhere (like insurance or taxes)?
Is it actually "good"? Is there any scenario where having more cash upfront is better than the employer's matching contribution and the tax-free interest?
Has anyone else worked for a "non-PF" company? How did it turn out for you?