Yes Provident Fund is a contribution by the employee and equal contribution by the employer subject to the Statute, Basic Earning, Voluntary Contribution of employee and Employer.
The statutory deduction depends on the Basic Earn which is 12 % for the employee and equal contribution by the employer, thus now the contribution so decuted i.e 24% is depsoited in 12% (Emp Contribution) + 8.33% (Employer Contribution) in Employee PF account and the rest amount in Pension Fund. In any case employee basis is more than Rs. 6500/- than the Pension Contribution will be mac ceiling to 541 only and the left amount will be deposited in Employee PF account with his Contribution of 12% and 8.33%.
Hope the same is clear.
14th January 2009