Provident Fund Deductions: Is the 12% Rate Fixed or Flexible for Employers?

CaPulkit
Question on Provident Fund Deductions

It's a question for experts. My question is whether the Provident Fund (PF) we deduct from employees' salaries is fixed, say 12% of the basic salary, or if we have the flexibility to pay PF as we want. As far as I know, if PF is deducted up to 12% and a maximum of 650, all requirements are met.
Prashant B Ingawale
Clarification on PF Contribution Rates

PF Contribution is not strictly limited to 12%; rather, it is 12% of Basic + DA. You can contribute more than 12%, but the employer may not agree to this as they have to reconcile and submit returns. Instead, they will prefer deductions as per the Act only.

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute