Re: Maximum Limit Of PF Contribution

Dear All,
I would like to know what is minimum & maximum rate of pf contribution by employee and employer?
Thanks & Regards,
Swati Pandit

Hi ,
The 12% of employer contribution is mandatory or we can reduce the % ?
Regards,
Sudharshan

Ok, I heard by someone in one managment meeting, that person saying that we have to plan to contribute less than 12% in employer contribution.thats y am asking.
thanks and regards
Sudharshan

Dear Sir,
P.F. Rate of Contribution is 12% by the Employee on salary, max.on Rs.6500/-P.M.
The Employee can contribute more percentage if Management agrees towards his contribution.
But the Management will contribute only 12% as matching contribution on Rs.6500/-p.m.
Some cos are giving matching contribution more also in some cases as per Management Policy.
D.Gurumurthy
LL.HR & IR Consultant

Hello Swati,
PF Rate of Contribution is 12% by the employees on Salary( But Voluntary Contribution No limit)if Management agreed towards his Contribution.
PF Rate of Contribution is 13.61% by the Employer( 12% PF + 1.61% (Admin charges))
Ankur Saklani.

Dear Ms. Pandit
For Employee no limit is there and he/she can contribute 100% of his/her basic+DA but employer is not bound to contribute more than 12% of 6500.

Hi All,

Based on your comments, I wish to update the followings:

1. PF is calculated on Pay (Basic + DA) of the Gross Salary.

Note: Most of the companies don’t entertain Dearness Allowance. In this case, you're required to calculate it from the Basic of the gross salary.

2. You're free to deduct PF from personnel salary those who’s Pay/Basic Salary are up to Rs.6500/- per month.

3. Personnel withdrawing Pay/Basic Salary more than that of Rs. 6500/- per month are requested to fill a Declaration Form for the same.

Note: If Yes, then the deposit towards Pension Head has to be calculated in such a manner that it shouldn’t exceed Rs. 541.45/- . Explanation to the same: 6500 is the limit for pension calculation (6500 X 8.33% = 541.45) and the rest amount has to be deposited into the PF account.

4. Employee Contribution: 12% of the Pay/Basic Salary.

5. Employer Contribution: 13.61 % (8.33% towards Pension, 3.67% towards PF, 1.10% towards ULDI (linked Insurance) and 0.51% towards administrative charge) of the Pay/Basic Salary.

Hope, the above substances may help you to get the clear picture of the same.

Thanks & Regards,

Ashit Prusty | Manager HR & Operation | HSPL

Cell: +91 99371 9394 2.

Swati,
There are lots of discussion in this forum and there are lots of divergent views / opinions on this subject. The facts - as given in the EFPO website and clarified by the EPF Commissioner - is:
1. The Employee contributes 12% of the Basic+DA. However, the employee CAN contribute more for the EPF. The excess over the 12% is called Voluntary PF.
2. The Employer also contributes 12% + 1.61% for Admin Charges and Employee Deposit Linked Insurance scheme.
3. The Employer's contribution of 12% is:
(a) 8.33% for the Employee Pension Scheme. This is limited to 8.33% of Max Rs 6500 which is Rs 542. The rest (exceeded Rs 542) is credited to the EPF.
(b) The rest of 3.67% is credited to the EPF.
Once you are familiar which this percentage figures and the Max of Rs 542 for the Pension Scheme, rest will be easy to comprehend!
Remember, 12% is for BOTH Employer and for the Employee - irrespective of the Basic+DA.
Rajusiachen

P.F rate of contribution is 12% by the employee ,may be increased up to 20% but employer contribution 12% mandatory max on Rs 6500/- p.m. (both on Basic + D.A.)

please help me that pf. limit rs.6500 if any one person get rs. 6000 who is working on company roll,it is necessary pf deduction