Understanding the PF Limit: Is It Still 6500 or Has It Changed to 10000?

Sir,

Can anyone tell me about the PF limit? Is it still 6500 or has it been changed to 10000? Please confirm.

Hi Supriya,

The 6500/- represents the total employer and employee contributions to the Provident Fund (PF), limited to a maximum of 6500/- based on their Basic pay per month. This means that even if the employee's basic salary exceeds 6500/-, the PF contribution can be capped at 6500/- to mitigate the administrative charges borne by the company.

Jeeva
9343753361

Hi,

To exempt or exclude someone from PF, their salary should be more than 10,000/-. Additionally, PF will only be deducted on amounts exceeding 6,500/- for individuals covered under the scheme earning less than 10,000/-. For further clarification, please email me at uttamuksingh@gmail.com.

Dear Saritha Ji,

Bonus eligibility limit and ESI limit have only been raised to Rs. 10,000. The PF limit remains at Rs. 6,500.

Dear Friend,

It is not the PF which is limited to Rs. 6500/-; it is the limit towards the pension fund from the contribution made by the employers.

There is no limit for the PF contribution. 12% of Basic Plus DAs will be the individual employee's contribution towards PF.

Employers are also required to pay a similar amount in addition to charges such as EDLI payment and admin charges.

Out of 12% of the contribution made by the employer, an amount of Rs. 541 (8.33% of 6500) or 8.33% of the basic+DA of the individual will be made to the Pension fund. The remaining amount beyond this limit will be remitted to the individual members in the Employers' head of the account.

Example – A

If the basic + DA of an employee is Rs. 10000/-

a) The employer's contribution towards the Pension Fund is Rs. 541/-

b) The employer's contribution toward PF is Rs. 659/-

[i.e. – Rs. 10000 X 12% = Rs. 1200.00

Pension Fund 8.33% of 6500/- Rs. 541.00

Balance – Employers PF Cont. on a member- Rs. 659.00

Example – B

If the basic + DA of an employee is Rs. 6000/-

a) The employer's contribution towards the Pension Fund is Rs. 500/-

b) The employer's contribution toward PF is Rs. 220/-

[i.e. – Rs. 6000 X 12% = Rs. 720.00

Pension Fund Rs. 500.00

Balance – Employers PF Cont. on the member- Rs. 200.00

Regards,

Balamurugan Sivaprakasam

Head-HR

ICIL-MM Nagar