Dear All
BINUMS
From India, Thiruvananthapuram
Can any one tell me the PF Contribution Limit of an Employee per Month.One of my friends told me there is no limit regarding the contribution of Employee.Is it true please explain
ThanksBINUMS
From India, Thiruvananthapuram
Dear Binu,
Employee contribution under EPF should always be restricted to 12% only. Apart from this we can have Volunatry Provident Fund called VPF about which even i am trying to get details.
VPF is something where we see only employee contributing certain percentage of amount and this amount will get added to his total PF account only.
is my ID do mail ur ID i will send you the details about VPF once i get if you want to know more about VPF.
Regards
Amith R.
From India, Bangalore
16Employee contribution under EPF should always be restricted to 12% only. Apart from this we can have Volunatry Provident Fund called VPF about which even i am trying to get details.
VPF is something where we see only employee contributing certain percentage of amount and this amount will get added to his total PF account only.
Regards
Amith R.
From India, Bangalore
Dear All,
As per the PF Act, the minimum contrbution is of 12% by an employee and the same i.e.12% is contrbuted by the Employer.
From the 12% of the employer's contribution 8.33% (i.e. An amount maximum upto of Rs.541.00) on the Maximum basic of Rs.6500.00 is contributed towards the Pension Fund and the balance towards the Provident Fund Account.
As far as the VPF is concerned, it can be maximum another 12%, and for the any contribution towards the VPF, Principal Employer has no liabilty, means if any employee contributes 24% ( 12% mandatory part & 12% VPF) towards the Provident Fund, the Employer share still be 12%.
The whole amount deducted towards VPF will go into the Provident Fund Account and not in Pension Account.
Hope this will clear your queries.
From India, Delhi
As per the PF Act, the minimum contrbution is of 12% by an employee and the same i.e.12% is contrbuted by the Employer.
From the 12% of the employer's contribution 8.33% (i.e. An amount maximum upto of Rs.541.00) on the Maximum basic of Rs.6500.00 is contributed towards the Pension Fund and the balance towards the Provident Fund Account.
As far as the VPF is concerned, it can be maximum another 12%, and for the any contribution towards the VPF, Principal Employer has no liabilty, means if any employee contributes 24% ( 12% mandatory part & 12% VPF) towards the Provident Fund, the Employer share still be 12%.
The whole amount deducted towards VPF will go into the Provident Fund Account and not in Pension Account.
Hope this will clear your queries.
From India, Delhi
Hi! Rajeev
Got one more query. Suppose an employee basic 10000 then his PF would be 1200/-. Is it complusory that even the employer has to also contribute 1200/- or he can just give 780/-which is the maximum as per the rules.
Thanks
Chitra
From India, Mumbai
Got one more query. Suppose an employee basic 10000 then his PF would be 1200/-. Is it complusory that even the employer has to also contribute 1200/- or he can just give 780/-which is the maximum as per the rules.
Thanks
Chitra
From India, Mumbai
Dear Chitra,
In your particular case. The employer will contribute Rs.1200.00 and an amount of Rs. 541.00 (Which is maximum limit for the contribution for PensionFund) will go into Pension Fund and the rest of the amount will go into the Provident Fund Account.
From India, Delhi
In your particular case. The employer will contribute Rs.1200.00 and an amount of Rs. 541.00 (Which is maximum limit for the contribution for PensionFund) will go into Pension Fund and the rest of the amount will go into the Provident Fund Account.
From India, Delhi
Hi!
Thanks for the reply but i dont want it for particularly my case. I want to know it on a general bases normally as per the rules what is the practice of the deduction from the employers side if the basic is more than the PF limit. Is is complusory for the employer also to contribute the equal amount.
Chitra
From India, Mumbai
Thanks for the reply but i dont want it for particularly my case. I want to know it on a general bases normally as per the rules what is the practice of the deduction from the employers side if the basic is more than the PF limit. Is is complusory for the employer also to contribute the equal amount.
Chitra
From India, Mumbai
Employer contribution is restricted to max 12% of basic+da, but employees contribution is min 12 % and can go for VPF contribution upto 20 % of Basic+DA............
From India, Mumbai
From India, Mumbai
Dear Rajeev,
Thanks for the clarification about VPF. My major queries about VPF is the percentage and also do we need to take permission from PF commissioner by filling any particular form. For this i have checked with the Enforcement officer and awaiting for his reply. Anyways thanks again.
Dear Chitra,
If any employee is covered under EPF than its must to deduct same percentage of amount from both employee and employer, only difference will as mentioned by Rajeev is
If basic is more than Rs 6500 you have to deduct 12% on exact basic from employee side and 12% of only Rs 6500 towards Pension fund (this is called as restricted wage for pension calculation) and difference amount should be considered as Employer PF contribution. Hope its clear for you now. You can also visit PF website for more details www.epfindia.com
Regards
Amith R.
From India, Bangalore
Thanks for the clarification about VPF. My major queries about VPF is the percentage and also do we need to take permission from PF commissioner by filling any particular form. For this i have checked with the Enforcement officer and awaiting for his reply. Anyways thanks again.
Dear Chitra,
If any employee is covered under EPF than its must to deduct same percentage of amount from both employee and employer, only difference will as mentioned by Rajeev is
If basic is more than Rs 6500 you have to deduct 12% on exact basic from employee side and 12% of only Rs 6500 towards Pension fund (this is called as restricted wage for pension calculation) and difference amount should be considered as Employer PF contribution. Hope its clear for you now. You can also visit PF website for more details www.epfindia.com
Regards
Amith R.
From India, Bangalore
Hi All This is ratheesh, I am getting a pay of 8115/m and what should be my take home sal /m as per the CMMI level 5 norms
From India, Selam
From India, Selam
Dear All
Thanks for the valuable replies.I want to ask one more question.
As far as my knowledge the PF Contribution limit of Employer is
Rs.780(based on Rs.6500 Basic+Da).Now some vastly experienced
people saying Employer PF limit is Rs.900/-(based on Rs.7500 Basic+Da)
When I see the EPF website it says only Rs.6500.I don't know from
where they got the new rate from.IF you have any idea about this
subject please share with me.........
Thanks In Advance
BINUMS
From India, Thiruvananthapuram
Thanks for the valuable replies.I want to ask one more question.
As far as my knowledge the PF Contribution limit of Employer is
Rs.780(based on Rs.6500 Basic+Da).Now some vastly experienced
people saying Employer PF limit is Rs.900/-(based on Rs.7500 Basic+Da)
When I see the EPF website it says only Rs.6500.I don't know from
where they got the new rate from.IF you have any idea about this
subject please share with me.........
Thanks In Advance
BINUMS
From India, Thiruvananthapuram
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