Voluntary Rate Of Pf

hi,
please let me know if an employee is drawing basic salary of Rs.9000/- and contributing to pf 14% as voluntary Pf rate, then the employer contribution of to pf will be Rs.780/- i.e. 12% of 6500? and calculation of EDLI, EdLI Admin, and pf admin will be on 6500/- or on total basic as it is done in the pf challan?
Some one please clarify.
Regards,
Team HR

PF admin. charges will be calculated on PF qualifying salary, ie, Rs 9000 in your example, whereas, EDLI and EDLI Admin. charges will be calculated on Rs 6500 only.
Regards,
Madhu.T.K

hi,
do we need to fill separate pf challan for those who are contributing in higher rate of pf? other wise how shall we calculate in the same challan?
regards,
team hr

Dear Team HR,
Greetings of the day.
For Voluntary deduction, Employer will pay only 12% which include Pension Fund-8.33 % and Contribution: 3.67 %
Other charges like admin EDLI and inspection charges will be calculated on the basic of Rs 65oo/- This is the maximum basic. For Employee the deduction will be 12% on the basic and the @5 that is more than normal contribution to be treated as Voluntary deduction of PF and calculated separately and put in the voluntary deduction column.
Thanks and warm regards,
Pranab Chakraborty

Hi Pranab ,
The answer u gave i already know.
i am asking how will u fit that in monthly pf challan which is prepared based on total PF qualifying salary for all employees(whose pf is deducted).
do we need to prepare separate monthly challan for those who is contributing to higher voluntary Rate of PF ?
Any senior person please clarify.
Regards,
Team HR

There is no separate challan for voluntary PF contribution, but the same challan can be used. The number of employees contributing higher percentage is shown in the returns (12A).
It is not compulsory that against the employee who contributes at a higher percentage the employer SHOULD NOT contribute at the same higher percentage but if the employer is willing to contribute a higher percentage than 12% he can certainly do so.
Regards,
Madhu.T.K

hi Madhu sir,
then in the same monthly pf challan how to fit ? because for other employees we calculate directly on total pf qualifying salary.
Regards,
Team HR

Dear HR Team members,
I do agrre with the statement of Ms. Madhu T.K that there is no separate challan for voluntary PF contribution & number of employees contributing higher percentage should reflect in the returns (12A).
Futher, please note that as per PF Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. & retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.
With Regards,
Ashish K Sharma
Sr. Manager-HR & Admn

Add on for the above question:
If a person making contribution for Rs.6500/- (contribution amount Rs.780/- i.e.12%) and voluntary contribution of Rs.5000/- (for all the 12 months) how the annual return to be prepared? Accountwise i.e. Account No.1, 2, etc. Can anyone help be by giving a worksheet?

In the challan you can take the total of actual contributions deducted and not the percentage of qualifying salary. If the challan is system generated, you have to program it accordingly.
Any voluntary contribution should be reflected in Provident Fund (A/C No 1) restricting Rs 541 (8.33% of Rs 6500) to Pension Fund (A/C. No 10)
Regards,
Madhu.T.K