Curious About Employer Contributions to Voluntary Provident Fund: Is There a Limit?

Hello Everyone, I have a peculiar question. None of our employees are below the salary limit required for PF, so as an employer, I am guessing we don't have to contribute to PF. However, as a token of appreciation to our employees, our company has decided to contribute PF for all our employees. So my understanding is that we will fall under (Voluntary Provident Fund) VPF.

Question on Employer Contribution Limit

So the question is, is there a limit on the contribution from the employer side regarding this? Will it still be 12%? Please let us know.

Regards,
Pradeep

EPF Act Coverage Requirements

As per Sec 1(3)(a) or (b) of the EPF Act, you will have to cover your employees under the EPF Scheme if you have 20 or more people working under you. The salary limit is Rs 6500, as mentioned in the EPF website FAQs: http://epfindia.com *[link updated to site home]*.

Applicability of the EPF Act

According to Sec 16 of the EPF Act, you can determine if the act is applicable to your establishment. Voluntary Provident Fund Contribution is a contribution made by the member and not by the employer. Regarding the above, you will find the 24th FAQs of the EPF Website: http://epfindia.com *[link updated to site home]*.

Understanding PF Calculation

To understand PF Calculation on the part of the employer & employee, click: http://www.accountinghead.com/index....ion-and-rates/.