Dear All, What if any employee want to exceed his contribution part i.e. an employee has wages 51500 (Basic + DA) and he want that company would deduct 4500 Rs. per month. Is it ok?
From India, Delhi
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From India, Delhi
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Yes company can deduct the same amount but they wont pay the same amount. The company shall contribute only Rs. 885/- Regards, CK Agrawal Sr. Ecxecutive HR
From India, Delhi
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From India, Delhi
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Under voluntary PF contribution, an employee can extend their PF contribution up to 80% of wages (Basic+DA), but the employer's contribution will be fixed at 12% only.
Fill out the voluntary PF form to increase your contribution. It will be a wise decision and a good way to save for the future.
From India, Hyderabad
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24Fill out the voluntary PF form to increase your contribution. It will be a wise decision and a good way to save for the future.
From India, Hyderabad
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Dear All,
As per the EPF Act of 1952:
1) The employee contribution shall be 12% of Basic Salary plus DA, if any.
2) The employer's liability of PF contribution will be on Rs. 6500/-, i.e., Rs. 780 per month. For example, if one's Basic salary is Rs. 7500, their PF contribution will be Rs. 900, and the employer's liability will be restricted to Rs. 780/-.
3) In case the employee is in CTC, the employer's liability may be matching contribution or Rs. 780/-, depending on salary negotiation.
Last but not least, the company's contribution is restricted to Rs. 780/-. However, some companies are also paying the matching contribution.
Feel free to contact the undersigned at Mobile no 9949218492.
Warm Regards,
P.V.R. SHARMA
From India, Eluru
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As per the EPF Act of 1952:
1) The employee contribution shall be 12% of Basic Salary plus DA, if any.
2) The employer's liability of PF contribution will be on Rs. 6500/-, i.e., Rs. 780 per month. For example, if one's Basic salary is Rs. 7500, their PF contribution will be Rs. 900, and the employer's liability will be restricted to Rs. 780/-.
3) In case the employee is in CTC, the employer's liability may be matching contribution or Rs. 780/-, depending on salary negotiation.
Last but not least, the company's contribution is restricted to Rs. 780/-. However, some companies are also paying the matching contribution.
Feel free to contact the undersigned at Mobile no 9949218492.
Warm Regards,
P.V.R. SHARMA
From India, Eluru
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I can't understand your people's calculation. Please explain it to me.
As per my understanding, there is a 12% deduction from the employee's side and another 12% from the employer. Under the voluntary PF scheme, the employee can opt for a maximum deduction of up to 8%. Therefore, the total deduction cannot exceed 20%.
From India, Ahmadabad
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As per my understanding, there is a 12% deduction from the employee's side and another 12% from the employer. Under the voluntary PF scheme, the employee can opt for a maximum deduction of up to 8%. Therefore, the total deduction cannot exceed 20%.
From India, Ahmadabad
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Hi Bhargavi, As per my understanding Voluntary PF can go upto 80% not 8%. Pls correct me if i am wrong.
From India, Hyderabad
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From India, Hyderabad
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Voluntary higher contributions for PF can be made for more than 8%. The only thing to note regarding VPF is that once it has been increased, it cannot be reduced without the consent of the relevant PF commissioner.
Regards,
M. Venkatraghavan
From India, Selam
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Regards,
M. Venkatraghavan
From India, Selam
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I do agree with the views of White Eagle that Voluntary PF can go up to 80%. I also agree with Mr. Venkatraghvan that once it has been increased, it cannot be reduced without the consent of the concerned area PF commissioner.
Regards,
Dinesh Adikane
From India, Wardha
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Regards,
Dinesh Adikane
From India, Wardha
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As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A., and retaining allowance if any. In case the member wants to contribute more than this, voluntarily, he can do so at any rate he desires, i.e., up to 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.
All the best
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From India, Vijayawada
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All the best
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From India, Vijayawada
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Hi All,
I agree with Mr. KVJ Raghunath, as the PF Act doesn't say anything about the maximum/minimum contribution towards VPF. Hence, a member can contribute up to 100% of his/her Basic + DA. Also, the company need not contribute to VPF opted by the employee.
Regards,
Ravi
From India, Bangalore
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I agree with Mr. KVJ Raghunath, as the PF Act doesn't say anything about the maximum/minimum contribution towards VPF. Hence, a member can contribute up to 100% of his/her Basic + DA. Also, the company need not contribute to VPF opted by the employee.
Regards,
Ravi
From India, Bangalore
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Dear All,
EPF deduction is up to 6500 only. The rules are as follows:
1. If your Basic+D.A is more than 6500 (For example - 6600), it depends on the Employer to continue with the employee or not. (This means the employer can close the deduction after 6500).
2. If the employer has paid over 6500, the Pension portion will be deducted only on 6500.
3. VPF: There is a provision of VPF in the EPF Misc Act 1952. VPF can be deducted 100%. However, there is a provision in the Factory Act 1948 that no deduction can be made more than 50% of the gross salary, whether it is Advance, loan, EPF, ESI, VPF, or many more deductions. At least the employee has to have something in his hand to eat.
From India, Ghaziabad
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EPF deduction is up to 6500 only. The rules are as follows:
1. If your Basic+D.A is more than 6500 (For example - 6600), it depends on the Employer to continue with the employee or not. (This means the employer can close the deduction after 6500).
2. If the employer has paid over 6500, the Pension portion will be deducted only on 6500.
3. VPF: There is a provision of VPF in the EPF Misc Act 1952. VPF can be deducted 100%. However, there is a provision in the Factory Act 1948 that no deduction can be made more than 50% of the gross salary, whether it is Advance, loan, EPF, ESI, VPF, or many more deductions. At least the employee has to have something in his hand to eat.
From India, Ghaziabad
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Dear Sir,
I do not agree with the latter part, i.e., voluntary contribution to one's PF needs consent of the concerned area PF commissioner. When I was in service, I have many times made one-time savings in my PF account voluntarily to save income tax. When the ceiling of Rs.1 lakh was reached, it was stopped. The concerned Area PF commissioner never intervened. I may make it clear here that our PF was maintained by a Trust and not by the PF office, but we were following the same rules. I think this needs further discussion and valuable inputs by retired PF officers who are now on the citehr.
From India, Pune
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I do not agree with the latter part, i.e., voluntary contribution to one's PF needs consent of the concerned area PF commissioner. When I was in service, I have many times made one-time savings in my PF account voluntarily to save income tax. When the ceiling of Rs.1 lakh was reached, it was stopped. The concerned Area PF commissioner never intervened. I may make it clear here that our PF was maintained by a Trust and not by the PF office, but we were following the same rules. I think this needs further discussion and valuable inputs by retired PF officers who are now on the citehr.
From India, Pune
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Dear Mr. Shyam Agarwal,
Regarding the enhancement and reduction of Voluntary Higher contribution, I have earlier checked with the local PF AC, who informed me that the reduction of the enhanced V. higher contribution requires prior consent from their department. They mentioned that they maintain a separate record of higher contribution members and it is not akin to a SB account where money can be deposited at will. In fact, according to the procedure, the V. higher contributing member must submit a declaration to the PF Office initially, although this requirement is not currently being enforced.
Concerning the pension fund, it comprises the Management's contribution. If the contribution exceeds Rs. 6500/= in salary, the surplus amount beyond Rs. 6500/= (i.e., Rs. 541/=) is transferred to the PF account of the member.
M. Venkatraghavan
From India, Selam
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Regarding the enhancement and reduction of Voluntary Higher contribution, I have earlier checked with the local PF AC, who informed me that the reduction of the enhanced V. higher contribution requires prior consent from their department. They mentioned that they maintain a separate record of higher contribution members and it is not akin to a SB account where money can be deposited at will. In fact, according to the procedure, the V. higher contributing member must submit a declaration to the PF Office initially, although this requirement is not currently being enforced.
Concerning the pension fund, it comprises the Management's contribution. If the contribution exceeds Rs. 6500/= in salary, the surplus amount beyond Rs. 6500/= (i.e., Rs. 541/=) is transferred to the PF account of the member.
M. Venkatraghavan
From India, Selam
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Dear Mr. Shyam Agarwal,
Regarding the enhancement and reduction of Voluntary Higher contribution, I have earlier checked with the local PF AC, who mentioned that the reduction of the enhanced V. higher contribution requires prior consent from their department. They explained that they monitor the higher contribution members separately, unlike a SB account where one can deposit money at will. In fact, according to the procedure, the V. higher contributing member is supposed to submit a declaration to the PF Office initially, although this requirement is not being insisted upon nowadays.
Regarding the pension fund, it constitutes the Management's contribution. If the contribution for salary exceeds Rs. 6500, the excess contribution beyond Rs. 6500 (i.e., Rs. 541) is transferred to the PF account of the member.
M. Venkatraghavan
Dear Shri Venkatraghavan Ji,
Thank you for the clarification. Possibly, the stance taken by the concerned local PF AC may be a personal opinion or enforced within his jurisdiction, as there is no such statutory provision to my knowledge.
From India, Pune
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Regarding the enhancement and reduction of Voluntary Higher contribution, I have earlier checked with the local PF AC, who mentioned that the reduction of the enhanced V. higher contribution requires prior consent from their department. They explained that they monitor the higher contribution members separately, unlike a SB account where one can deposit money at will. In fact, according to the procedure, the V. higher contributing member is supposed to submit a declaration to the PF Office initially, although this requirement is not being insisted upon nowadays.
Regarding the pension fund, it constitutes the Management's contribution. If the contribution for salary exceeds Rs. 6500, the excess contribution beyond Rs. 6500 (i.e., Rs. 541) is transferred to the PF account of the member.
M. Venkatraghavan
Dear Shri Venkatraghavan Ji,
Thank you for the clarification. Possibly, the stance taken by the concerned local PF AC may be a personal opinion or enforced within his jurisdiction, as there is no such statutory provision to my knowledge.
From India, Pune
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Voluntary PF.doc
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