My salary is without any deductions. However, we can get the PF deducted every month by choice. Incase I opt for PF deductions my company refuses for employer's contribution. So is the employer's contribution depends on company's own discretion?
It seems your salary is more than ten thousand so you are out of compulsory PF (Provident fund). If you want than you can be part of PF by choice. In that case company have to pay there part (i.e 12 % of Wages) you can increase your share but company limit is fixed. Employer’s contribution did not depend upon company discretion they have to do there part.
Most of the company put PF contribution part in CTC (Cost to company). Now I assume in your case employer PF contribution is not a part of CTC because you do not come in preview of PF. Now if you voluntarily opt for PF than employer will also have to pay contribution. In that case you will cross your CTC mark and company hired you on the bases of CTC. So company will take both contribution from your CTC (I am not saying from your salary remember both are different) and your net take home will be reduce from the current.