Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Rates of Contribution:
a) The Employees' Provident Fund Scheme <link updated to site home> ( Search On Cite | Search On Google )
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay ,DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer .
b) The Employees' Pension Scheme <link updated to site home> ( Search On Cite | Search On Google )
From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 ).
The Central Government also would contribute at the rate of 1.1 / 6% of total wages.

c) Employees' Deposit Linked Insurance Scheme: <link updated to site home> ( Search On Cite | Search On Google )

No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).

d) What is the voluntary rate of Provident Fund contribution by the member?

As per the Act, the member has to contribute at the rate of 12% of his basic pay, D.A. & 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. upto 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.


From United States
Hi Chaps, Please find attached clarification regarding PF contribution on leave encashment. Regards Bharath Human Capital management
From United States

Attached Files
File Type: pdf circular on pf on leave encashment 5.5.08.pdf (230.0 KB, 516 views)

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™