Contribute PF admin for Voluntary PF contribution over and above Statutory, Any act reference?

Can anybody guide whether we need to contribute PF admin for Voluntary PF contribution over and above Statutory? Any act reference if so, please share.

Administration charges are to be paid based on the actual wages on which the PF is deducted and contributed. This should include the amount of salary on which voluntary PF or PF in addition to mandatory PF is paid.

Dear Sir,

Thank you for your response. Is there any specific section to which I can refer?

Thank you.

Please read the Provident Fund and Miscellaneous Provisions Act, 1952, and the schemes thereto. Don't just read the sections you need. That does not make sense. Read the entire Act.

Voluntary PF may be of two types. One where both the employer and employees are contributing above the statutory limit (as of date ₹15,000 per month), and admin charges will be on the actual PF gross, say ₹20,000 per month.

There are instances where the employee is only contributing an extra percentage as VPF, but the employer is not contributing. Using the above example, the employer is contributing 12% on ₹20,000, but the employee is contributing 20% of ₹20,000, i.e., 8% extra as VPF.

As per para 30 of the PF scheme, admin charges will be paid on PF gross, which in this case is ₹20,000, whereas the employee contribution in terms of percentage is higher.

This has been clarified by different PF offices, stating that permission should be sought before contributions are made; contributing poses no issue, etc. I am unsure about how to proceed. I am aware of some organizations where only employees contribute an extra percentage as VPF, but not the employer, and there is no provision to pay admin charges on the additional contribution of the employee's VPF since admin charges are based on PF gross and not on the percentage of contribution.

If anyone can provide further clarification on this matter, please reach out.

Thanks and Regards,

S K Bandyopadhyay (Howrah, WB)

skb@usdhrs.in

Hello everyone, I request you all to please clear my doubt on VPF calculation. I have one employee who is contributing an extra 23.56% (12% + 23.56% = 35.56%) as VPF, but the employer is only contributing 12% on basic wage ceiling, i.e., Rs 15,000.

Right now, I'm calculating as follows:

Name EPF WAGES EPS WAGES EPF EE Share EPF ER Share EPS Contribution

XY 15000 15000 5334 550 1250
(35.56% of 15K)

Also, I'm calculating EDLI on EPF wages. Please let me know if I'm doing it right, and if not, please provide the correct calculation with an example.

This is okay. In EDLI, the ceiling of Rs 15,000 is applicable.

Hello, Sir. Thank you for your quick reply. In regards to this post, I have one more query. Should I do the calculation like this:
EPF WAGES - 44450
EPS WAGES - 15000
EDLI WAGES - 15000
So, EPF EE Share - 5334, EPF ER Share - 4084, EPS Contribution - 1250. However, in this case, why should the employer pay the extra percentage in the employee's EPF A/C, even though the basic wage ceiling is 15000? It is the employee's choice to contribute an extra percentage towards PF, but the employer is not liable to pay extra. Please suggest.

If the employer is ready to pay PF on gross salary/salary higher than Rs 15000, he can do so. The decision of contributing 8.33% of that higher salary to the Pension Fund is pending, though the Supreme Court has ruled that employees who receive this higher contribution will get a higher pension proportionate to the contribution. Even now, those who file an execution petition will get a verdict in their favor and receive a higher pension on the grounds that their employer had contributed to the pension fund without restricting it to 8.33% of Rs 15000 but taking the actual salary on which PF is contributed as their Pension Qualifying Salary.

But sir, the employer wants to contribute to only 15000, not on a higher salary. Can I do the calculation like this:

EPF WAGES - 44450
EPS WAGES - 15000
EDLI WAGES - 15000

So, EPF EE Share - 5334, EPF ER Share - 550, EPS Contribution - 1250

Earlier, I was doing it like this:

EPF WAGES - 15000
EPS WAGES - 15000
EDLI WAGES - 15000

So, EPF EE Share - 5334, EPF ER Share - 550, EPS Contribution - 1250

Which one will be correct? (Only the employee wants to contribute more than 12%, not the employer)