I would like to know what would be the employer contribution towards PF if the basic of an employee is Rs.10000/-. Is it 12% of 10000/-???
I heard that the organisation is liable to contribute towards PF only a maximum of 12% of Rs.7500/-??
I also want to know if the emplyee does not wish to contribute for PF whose basic is more than Rs.7500/-, is it mandatory by the employer to contribute towards PF for the particular employee?
Kindly clarify.
20th September 2006 From India, New Delhi

Sr. Manager Hr/admin
P Ramachandran
Hr & Administrative Manager
Rajeev Verma
Hr Professional
Human Resource
Hr Professional
Hr- Executive
+3 Others

Regarding PF, if the employee basic wages exceeding Rs.6500/-, there is
no liability on the part of employer to pay PF contribution.
If employee joined with less than above basic, continuing service with
more than the basic of Rs.6500/- , employer bound to pay PF contribution
on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more
than that.
Hope get clarification on the same.
Satish Raz
20th September 2006 From Germany
Hi Prathima, ceiling was 3500/- upto 01.10.94, then revised to 5000/-. Then it revaised to 6500/- from 01.04.1995. and remains same, further there is no amendment. Satish
20th September 2006 From Germany
and IF employee want to contribute 12% on whole 10,000 then employer has to contribute 12% on whole 10,000
23rd September 2006 From India, Pune
Hi,I have a doubt reg contribution to PF.My doubts are:1) Is it mandatory on the part of the employer to deduct PF of Rs. 780/- (12% on Rs. 6500[ceiling amount]), from the salary payable to the Employee, even if the BASIC+DA of exceeds Rs. 6500-/.2) Is it mandatory on the part of the employer to contribute Rs. 884.65 (13.61% of Rs. 6500[ceiling amount]) to the PF Fund, even if the BASIC+DA of the employee exceeds Rs. 6500/-Pls clarify my doubts.Regards Saravana
2nd June 2008 From India, Bangalore
As the Law goes, PF has to be deducted @ 12% on Basic+DA subject to a maximum Basic & DA of 6500 if they are submitting the amount with RPFC. But if a company manages its PF through a trust then it can contribute towards PF at the actual Basic+DA, i.e even if it is more than 6500.
2nd June 2008
2nd June 2008 From India, Mumbai

Attached Files
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File Type: doc submisions_of_returns_-_monthly_and_annually.doc (49.0 KB, 1702 views)
File Type: doc PF_-_For_Employees.doc (29.0 KB, 1281 views)
File Type: doc PF_-_EXEMPTIONS.doc (73.5 KB, 860 views)
File Type: doc PF_-_DUTIES_OF_EMPLOYER.doc (37.0 KB, 1033 views)
File Type: doc benefits_of_PF.doc (47.0 KB, 726 views)
As per the PF act employer has to contribute 12% as well as employee has to contribute 12% of his (Basic+DA) towards PF. I want to know from that 12% there is a break up of 8.33 % and 3.67%. Towards what does the 8.33 % and 3.67 % go to?
16th August 2008
Hi Aditi,
Following are the different Heads of the Provident Fund Account, where the money goes.......
Account No1 (PF) ................................. 12% (of Employee Cont. on Basic+D.A.) + [ (12% of employer's Cont.)- (3.67% or 541.00, which ever is minimum) ]
Account No.2 (Admn charges on PF) .......... 1.1 %
Account No.10 (Pension Fund) .................. 8.33% (Subject to Maximum of Rs. 541.00, Limit being Rs.6500.00)
Account No. 21 (EDLI Charges) ................ 0.5 %
Account No. 22 (Admn. charge on EDLI) ...... 0.01%
19th August 2008 From India, Delhi
Hi all City HR members,
thanks to tell me the celling amount of PF Rs. 6,500/-
but my problem is that which act says the celling amount of PF is 6,500/-
actually i want to give a reply to our ex-employee.
plz help me
5th May 2009

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