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Dear All
If employee salary is more than (Basic) Rs.16000/- we need to deduct EPF contribution for him or Not?
Regards
Subramani
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Dear Mr.Subramani,
If an Employee basic is 16000/- then it is his/her wish to go for VPF(option), actual fact is that if an employee's basic not exceeding 15000/- can be considered for PF contribution (EE & ER).
VPF account is an extension of the Employees Provident Fund (EPF) account which allows an employee to contribute a higher EPF amount voluntarily. The employer has to subscribe 12% of the employee’s basic salary (including Dearness Allowance) as his contribution towards the EPF. But you can turn this account into VPF by increasing your contribution to it by over and above the mandatory 12%
Anything more than 15000/- basic has to be exempted with form 11 according to EPF regulation .
They have many benefits in VPF like Loan,Tax free,high interest rate(close to 9%), investment fund and safe
Dear Subramani, you have not mentioned whether Employee in question was earlier EPF Mmeber in his Previous Employment? Date of leaving Previous Job? Date of Joining your establishment? Whether Previous PF Amount wothdrawn? What is the information furnished in Form No 11(New)
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