Maximum Amout Of PF Deduction

Dear Pooja,
There is no maximum amount of PF as such . It all depends upon the company management. In our company we are cutting upto 7500 .But it should be 12% of basic.
Cheers
Vikas

Dear Pooja & Friends,

Sorry my this comment " You all have to read the PF Act and then reply"

As per PF Act, an employee whose basic + DA is upto RS 6500/- per month,the PF Calculation would be 12 % of the actual amount.

If an employee is getting more than RS 6500/- as Basic + DA, in this case both the parties has to agree upon PF Deduction on Basic + DA ( whatever is the amount). It means the employer and the employee are ready for the PF contribution. If anyone of the party ( Employer or Employee) are not ready for make the contribution above the limit of RS 6500/- then the PF would deduct on RS 6500/- only.

As you are aware that under this Act 2 schemes are running i.e Provident Fund and Pension Scheme.
The employer contribution is divided into 2 parts. First part is for Pension Fund, in which the upper limit is RS 6500/- ( Basic + DA) and the contribution rate is 8.33%.
The Second part means remaining from the total contribution (12 %) goes to Provident Fund.

In present senario, almost all the companies are working on CTC concept. In which both the contribution show in your Total Package.

Hope I have clear your doubt.

AMATYA

Employee's deduction as per PF Act., i s 12% on upto Rs6500/-Basic+da BUt..BUt... in many organizations such as mine, deduction of all employees' including MD's salary 12% of Basic (beyond 6500/-)and same are being contributed from Employer/org.:-P

Hi
PF deduction is 12% of basic .
The limit for PF is basic is Rs. 6500/- but if the employee is drawing basic of more than Rs.6500, it is up to management decision to deduct 12 % of basic or 12% of 6500/- keeping hte limit or remove the employee name from PF contribution as he/she is drawing a basic of more than Rs. 6500/- per month. Whatever the employee contributes for PF , the same amount has to be contributed by employer too.
Bye
Usha

Well, as far as my knowledge says, An employee can contribute upto 100% of Basic + DA towards PF, however employer maximum contrubition is 12% of Basic + DA.

Dear Pooja,

There are two methods of deducting PF first one is standard method in that the maximum amount of PF deduction is 12% of the basic up to 6500/- (most of the companies follows) but the other method says that an employee can pay up to 50% of the basic amount to the PF (followed by some companies)

Hope this will satisfy you.

Regards

Pankaj Chandan

Dear Member
The Maximum amount in PF from Employee side may be up 20% of basic but the employer liabilities is only 12% of basic or 780 whichever is less.
Employee will earn the same rate of interest on the excess contribution also.
Any further suggestion on this matter will be appreciated.
Regards,
Devender Kr.Sharma

contribution for an employee who worked in 5 days in a month and his basic wages is 2800+555:icon10:

Dear Pooja,
Well defined by Amatya..
PF contribution is made 12% of Basic and DA from both employee as well as employer side. Out of employer's contribution 8.33% goes to pension and rest 3.67% goes to Provident Fund.
The maximum ceiling is basic 6500/-, after which if an employee wants to be exempted from the PF contribution then with the mutual consent between both can be done. The employee needs to express it in written.
Even with the mutual consent Company may stick with the maximum contribution of rupees 780/- only.
Regards,
Amit seth.

Dear Pankaj,
I believe an employee may contribute upto an amount which is not more than his basic salary.
Gajraj