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Dear Nair ji,
I have an agreement only with your first part i.e. PF Act does not lay down any upper limit for VPF. But with due respect to you, I have disagreement with your second part which says an employee can choose to deposit his entire take home.
I would like to draw your kind attention to section 7(3) of POW Act 1936 which is given below verbatim.
Notwithstanding any thing contained in this Act, the total amount of deductions which may be made under sub section (2) in any wage period from wage of any employed person shall not exceed:
(i) in cases where such deductions are wholly or partly made for payment to co-op. society, 75% of such wage;
(ii) in any other case 50% of such wage.
In one of the old postings of mine, I discussed on this clause.

From India, Mumbai
Sir, With practically every employee drawing >Rs. 6,500pm, they are all out of the ambit of Payment of Wages Act. So we have a good number of employees nearing their reirement remitting their almost entire take home salary in PF. Obviously, they have other earning members in their family and are able to pull on without the income from the head of the family. The incentive is the attractive returns a short term deposit of 1-1.5 years is fetching, although in many cases there is not much scope under Section 80 C for tax incentive.
From India, Bhopal
Payment of wages act is now up to 18,000 per month. Hope that is taken into account.
From India, Mumbai
hey Pourna, employer share will be the same. administration charges will be born by employers
From India, Vijayawada
Hi, How do we track VPF contribution? Is there a way to check what amount is being credited to VPF every month? Its not available in EPF passbook.
From India, Bengaluru

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