Dear All, I would like to know what is minimum & maximum rate of pf contribution by employee and employer? Thanks & Regards, Swati Pandit
From India, Mumbai
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1From India, Mumbai
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Hi , The 12% of employer contribution is mandatory or we can reduce the % ? Regards, Sudharshan
From India, Bangalore
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From India, Bangalore
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Ok, I heard by someone in one managment meeting, that person saying that we have to plan to contribute less than 12% in employer contribution.thats y am asking. thanks and regards Sudharshan
From India, Bangalore
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From India, Bangalore
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Dear Sir,
The Provident Fund (P.F.) rate of contribution is 12% by the employee on their salary, with a maximum cap set at Rs. 6500 per month. The employee has the option to contribute a higher percentage if the management agrees to it.
However, the management will only contribute 12% as a matching contribution on the Rs. 6500 per month. Some companies may offer a higher matching contribution based on their management policy.
Regards,
D. Gurumurthy
LL. HR & IR Consultant
From India, Hyderabad
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The Provident Fund (P.F.) rate of contribution is 12% by the employee on their salary, with a maximum cap set at Rs. 6500 per month. The employee has the option to contribute a higher percentage if the management agrees to it.
However, the management will only contribute 12% as a matching contribution on the Rs. 6500 per month. Some companies may offer a higher matching contribution based on their management policy.
Regards,
D. Gurumurthy
LL. HR & IR Consultant
From India, Hyderabad
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Hello Swati,
The PF rate of contribution is 12% by the employees on salary. However, there is no limit on voluntary contributions if management agrees towards this contribution. The PF rate of contribution is 13.61% by the employer, which includes 12% PF and 1.61% (admin charges).
Ankur Saklani.
From India, Chandigarh
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The PF rate of contribution is 12% by the employees on salary. However, there is no limit on voluntary contributions if management agrees towards this contribution. The PF rate of contribution is 13.61% by the employer, which includes 12% PF and 1.61% (admin charges).
Ankur Saklani.
From India, Chandigarh
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Dear Ms. Pandit For Employee no limit is there and he/she can contribute 100% of his/her basic+DA but employer is not bound to contribute more than 12% of 6500.
From India, Kota
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From India, Kota
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Hi All,
Based on your comments, I wish to update the followings:
1. PF is calculated on Pay (Basic + DA) of the Gross Salary.
Note: Most of the companies don’t entertain Dearness Allowance. In this case, you're required to calculate it from the Basic of the gross salary.
2. You're free to deduct PF from personnel salary those who’s Pay/Basic Salary are up to Rs.6500/- per month.
3. Personnel withdrawing Pay/Basic Salary more than that of Rs. 6500/- per month are requested to fill a Declaration Form for the same.
Note: If Yes, then the deposit towards Pension Head has to be calculated in such a manner that it shouldn’t exceed Rs. 541.45/- . Explanation to the same: 6500 is the limit for pension calculation (6500 X 8.33% = 541.45) and the rest amount has to be deposited into the PF account.
4. Employee Contribution: 12% of the Pay/Basic Salary.
5. Employer Contribution: 13.61 % (8.33% towards Pension, 3.67% towards PF, 1.10% towards ULDI (linked Insurance) and 0.51% towards administrative charge) of the Pay/Basic Salary.
Hope, the above substances may help you to get the clear picture of the same.
Thanks & Regards,
Ashit Prusty | Manager HR & Operation | HSPL
Cell: +91 99371 9394 2.
From India, Bhubaneswar
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Based on your comments, I wish to update the followings:
1. PF is calculated on Pay (Basic + DA) of the Gross Salary.
Note: Most of the companies don’t entertain Dearness Allowance. In this case, you're required to calculate it from the Basic of the gross salary.
2. You're free to deduct PF from personnel salary those who’s Pay/Basic Salary are up to Rs.6500/- per month.
3. Personnel withdrawing Pay/Basic Salary more than that of Rs. 6500/- per month are requested to fill a Declaration Form for the same.
Note: If Yes, then the deposit towards Pension Head has to be calculated in such a manner that it shouldn’t exceed Rs. 541.45/- . Explanation to the same: 6500 is the limit for pension calculation (6500 X 8.33% = 541.45) and the rest amount has to be deposited into the PF account.
4. Employee Contribution: 12% of the Pay/Basic Salary.
5. Employer Contribution: 13.61 % (8.33% towards Pension, 3.67% towards PF, 1.10% towards ULDI (linked Insurance) and 0.51% towards administrative charge) of the Pay/Basic Salary.
Hope, the above substances may help you to get the clear picture of the same.
Thanks & Regards,
Ashit Prusty | Manager HR & Operation | HSPL
Cell: +91 99371 9394 2.
From India, Bhubaneswar
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Swati,
There are lots of discussions in this forum, and there are lots of divergent views/opinions on this subject. The facts - as given on the EPFO website and clarified by the EPF Commissioner - are:
1. The Employee contributes 12% of the Basic+DA. However, the employee CAN contribute more to the EPF. The excess over the 12% is called Voluntary PF.
2. The Employer also contributes 12% + 1.61% for Admin Charges and Employee Deposit Linked Insurance scheme.
3. The Employer's contribution of 12% is:
(a) 8.33% for the Employee Pension Scheme. This is limited to 8.33% of Max Rs 6500, which is Rs 542. The rest (exceeded Rs 542) is credited to the EPF.
(b) The rest of 3.67% is credited to the EPF.
Once you are familiar with these percentage figures and the Max of Rs 542 for the Pension Scheme, the rest will be easy to comprehend! Remember, 12% is for BOTH the Employer and the Employee - irrespective of the Basic+DA.
Rajusiachen
From India, Coimbatore
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There are lots of discussions in this forum, and there are lots of divergent views/opinions on this subject. The facts - as given on the EPFO website and clarified by the EPF Commissioner - are:
1. The Employee contributes 12% of the Basic+DA. However, the employee CAN contribute more to the EPF. The excess over the 12% is called Voluntary PF.
2. The Employer also contributes 12% + 1.61% for Admin Charges and Employee Deposit Linked Insurance scheme.
3. The Employer's contribution of 12% is:
(a) 8.33% for the Employee Pension Scheme. This is limited to 8.33% of Max Rs 6500, which is Rs 542. The rest (exceeded Rs 542) is credited to the EPF.
(b) The rest of 3.67% is credited to the EPF.
Once you are familiar with these percentage figures and the Max of Rs 542 for the Pension Scheme, the rest will be easy to comprehend! Remember, 12% is for BOTH the Employer and the Employee - irrespective of the Basic+DA.
Rajusiachen
From India, Coimbatore
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P.F rate of contribution is 12% by the employee ,may be increased up to 20% but employer contribution 12% mandatory max on Rs 6500/- p.m. (both on Basic + D.A.)
From India, Bangalore
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From India, Bangalore
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf