Madhu.T.K
Industrial Relations And Labour Laws
+1 Other

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Can anybody guide whether we need to contribute PF admin for Voluntary PF contribution over and above Statutory,Any act reference if so please share.
Administration charges is to be paid on the actual wages paid on which the PF is deducted and contributed, and, obviously, it should include the amount of salary on which voluntary PF or PF in addition to mandatory PF is paid.
Dear Sir Thanks for your response,is there any section for which i can refer.
Please read the Provident Fund and Misc Provisions Act, 1952 and the Schemes thereto. Don’t read the section what you need. That does not make sense. read the entire Act.
Voluntary PF may be of two types. One where both employer and employees are contributing above the statutory limit ( as on date 15,000/- per month ) and admin charge will be on the actual PF gross say 20,000/- per month.
There are instants where employee is only contributing extra % as VPF but employer is not contributing. Say as per the above example employer is contributing 12% on 20,000/- but the employee is contributing 20% of 20,000/- i.e 8% extra as VPF.
As per para 30 of the PF scheme, admin charge will be paid on PF gross and in this case that is 20,000/-. Where as employee contribution in terms of % is more.
The same has been clarified from different PF office and the reply was to take permission before contribution, contribute no issue etc.
I have no specific clue what to do. I know some organization where only the employees are contributing extra % as VPF but not the employer and there is no scope to pay admin charge on the extra contribution of the employee's VPF as the admin charge is paid on PF gross not on % of contribution.
If any one has further clarification in this matter, please ...........................
Thanks and Regards,
S K Bandyopadhyay ( Howrah, WB)
+91 98310 81531

Hello everyone, request you all to please clear my doubt on VPF calculation.
I have one employee who is contributing extra 23.56 % (12% +23.56%= 35.56%) as VPF but employer is contributing only 12% on basic wage celling i.e Rs 15000.
right now I'm doing calculation as-
Name EPF WAGES EPS WAGES EPF EE Share EPF ER Share EPS Contribution
XY 15000 15000 5334 550 1250
(35.56% OF 15K)
Also, I'm calculation EDLI on EPF wages. Please let me know if I'm doing right and if not please give me the correct calculation with example.

This is okay. In EDLI, the ceiling of Rs 15000 is applicable.
Hello Sir, thanks for your quick reply. In regards to this post, I have one more query.
or should I do calculation like this-
EPF WAGES- 44450
EPS WAGES- 15000
EDLI WAGES- 15000
So, EPF EE Share - 5334, EPF ER Share - 4084, EPS Contribution- 1250
but in this case, why should employer pay the extra % in employees EPF A/C, though basic wage celling is 15000.
and its employee's wish to contribute extra % towards PF but employer is not liable to pay extra %. Please suggest.

If the employer is ready to pay PF on gross salary/salary higher than Rs 15000, he can do so. The decision of contributing 8.33% of that higher salary to Pension Fund is pending though the Supreme Court has ruled that the employees who get this higher contribution will get higher pension proportionate to the contribution. Even know,those who file an execution petition will get a verdict in their favour and get higher pension on the ground that their employer had contributed pension fund without restricting it to 8.33% of Rs 15000 but taking the same actual salary on which PF is contributed as their Pension Qualifying Salary.
But sir, employer wants to contribute on 15000 only not on higher salary so, can I do calculation as like-
EPF WAGES- 44450
EPS WAGES- 15000
EDLI WAGES- 15000
So, EPF EE Share - 5334, EPF ER Share - 550, EPS Contribution- 1250
earlier I was doing like this-
EPF WAGES- 15000
EPS WAGES- 15000
EDLI WAGES- 15000
So, EPF EE Share - 5334, EPF ER Share - 550, EPS Contribution- 1250
which one will be correct. ( only employee wants to contribute more than 12% not employer )


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