Is There A Max Limit On PF Deduction ?

Hi Team ,
I have read once that , there is a maximum limit for the PF Deduction .
Is that corrct ?
it says the maximum limit for pf deduction is 12% of 6500 .
please make me clarified .
Advance Thank you

Hi Viyannar,
The maximum limit for pf deduction is 12% of 6500 is correct.
And also there is an exemption by submitting form No 11.

Dear Mr.Viyannar,
Yes there is a limit on PF Contribution & mentioned below:
Employee Share: 12% on his Basic Salary
Employer Share: 12%

Hi Murali , Thanks for information . If that limit is there , why companies are deducting more than that amount ?
infact it is loss for them as well , because they also need to pay equal amount to employee PF Account .

Hi,
Though the maximum is 12% of 6500, it depends on the management decision. Management can decide to contribute and deduct complete 12% on Basic.
Regards
Akhila

Rs. 6500 is maximum limit for EPS & EDLI As far as EPF act is concern the deduction of 12% can be done on basic salary+da/vda+food concessions + any othe allowances which is undefined e.g special allowance & other allowance.
thanks & regards,
from,
sumit kumar saxena,
9899669071, 0120-4131277

PF deduction is made @12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month as per the Act.
But Voluntary higher contributions are also acceptable by EPFO at the joint request of the member and the employer.
Regards.

Dear friend,
Subject to submission of no objection (Joinr declaration of Er. and Ee.) form under 26(6), it can be deducted on above specified limite (6,500 INR per month) too.

Dear friend,
I am sorry to say that deduction on more than Rs.6,500/- per month doesn't depends on management decision itself. If employee doesn't accept and form-11 is not submitted, it is not feasible to deduct.
Sathish
Though the maximum is 12% of 6500, it depends on the management decision. Management can decide to contribute and deduct complete 12% on Basic.
Regards
Akhila[/QUOTE]

Hi all
We have a policy that if the BPay is <=6500 Company will contribute its 12% & admn charges. Consider an employee is drawing Rs. 6000/- pm & presently company is contributing its 13.61% to PF. In subsequent month his basic pay is revised to Rs. 7000/-. In this case shall I deduct the entire 25.61% (12% Employer contri+12% Employee contri+ 1.61% EDLI+Admn charges) from his CTC or shall I remove from the PF list.
PLS clarify me
RR