Exports/risk Management/ Administration/
Timeoffice, Microsoft Office
Assistant Manager - Hr
Hr / Er Professional
Pay Roll, Pf & Esi
12% is employee share towards EPF and 12% is employer share out of which 8.33% goes to pension and rest is provident fund.now u can pay max 12% as VPF max .and min is as per your choice ,employer will only pay 12%.so vpf and epf can be upto 24%.
j s malik
Voluntary PF is over & above the statutory PF of 12%. There is no limit for VPF. An employee can contribute as much as he/she may wish, earlier there was a cap on this. Employee is not required to pay any contribution towards VPF.
Hope this helps.
In my views;
The Maximum contribution towards PF indluding VPF is 20%. Employer's contribution will restricted upto 12% only. The approval is needed from RPFC office.
Employee is entitled for interest on such accumulation.Employer's service charge will increase to some extent(.01%)
Hope this is the latest status.
specific percentage on PF WAGE and it is not a fixed amount like Rs.1000/-, Rs. 500/- etc. It should be always a some % on P F Wage. There is no need to pay EMPLOYER contribution on this. It is a voluntary Provident Fund Contribution by the employee. Employees generally opt for VPF for I T purpose and savings.
Employer will not contribute at that rate what employee doing. Employer will just contribute the 10 or 12% whatever applies to establishment.
in between only on retirement or resignation. this as per my knowledge.
Addl Manager H.R.
Hi, For the deduction of Voluntary Provident Fund you have to apply for regularizing membership/Provident Fund Contributions deduction on salaries over and above Rs. 6500/- or at Higher Rate.
But employer should pay only 12% on basic rate. An employee can deduct the Provident Fund upto 32% of his basic. for thios he gets 8.5% intrest rate.
The PF contribution is 12% both from employer & employee side. 12% is compulsory but in case employee wants he/she can increase the % of share of PF from the basic salary but employer contribution remains the same. There is no obligation on employer to increase their % of share on vpf.
In case of more clarification feel free to get in touch on .
According to me, employee can invest maximum of 27% of his salary (Basic + any DA + Food concession, if any) towards PF Contributions.
As most of the companies are bound to pay 12% PF, employees have a provision to contribute remaining 15% towards VPF.
However, Company contributes to the tune of 12% only.
Salary - Rs.10,000.00
Employee Cont - Rs. 1,200.00
Co.share to EPF - Rs. 659.00
Co.share to FPS - Rs. 541.00
Employee share towrads VPF (Max 15%) - Rs.1500.00
However, under the current interest rates and ivestment patterns and more options available (like PPF / MFs) the VPF has no major attraction in employee community. This was in practice in early years as many employees' savings are only through 'Forced' deductions.
Thanks & Best Regards,
Voluntary PF is the contribution of employee's own contribution and not from the employer side and has no limit. In our company it is restricted and compulsory to 12% from employer side but it can be more than 12% from employee side.
Tajender K Bajaj
VPF is over and above the statutory rate of 12% which only the employee contributes. Employer will not contribute anything against employee's VPF contribution. In fact there is no ceiling on VPF. The whole amount of VPF earns tax benefit to an employee.
Actually the contribution is 12% from Employee side & 12% from Employer side + some other admin charges.
So the government has fixed 12% minimum from Employee contribution and if the employee wants to contribute more then 12% he can. If the employee is contributing more then 12% what ever the extra contribution is done that is called voluntary.
PF is automatically deducted from your salary.
Both you and your employer contribute to it.
While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments.
You also have the option to contribute additional amounts through voluntary contributions (VPF).
Current rate of interest is 8.5% per annum (p.a.) and is tax-free.