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Hi, Is there any restriction on PF deduction (i.e. Rs.780/- only) as per Provident Fund Act ? If Yes, please provide me the write-up for the same. Thanks....
PF act do not restrict the contribution amount but employer is not legally bound to pay the PF contribution above 12% of 6500 Basic+DA (i.e. Rs. 780/-).
Explanation -
1. If both (employer and Employee) are ready to contribute more than 780 than they can.
2. If employee want to contribute his/her 100 % of basic but employer do want the same then employer can pay only 12% of his basic ceiling to 6500.(Ceiling Value: 6500 w.e.f. 1/6/2001) as employer is not legally bound to pay more than that.

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