Understanding Employee PF Contribution Limits: Can You Deduct 100%?

Maximum Limit for Employee's P.F Contribution

What is the maximum limit for P.F on the employee's part? If any employee wants to deduct their 100% contribution, please let me know.

Regards

An employee who wishes to contribute more than the employer's deduction portion can opt for the Voluntary Provident Fund (VPF). An employee can contribute up to 100% of their basic salary, excluding other components. To enroll in VPF, the employee needs to fill out Form No. 2A, which can be found on the EPFO (Govt. of India) website at www.epfindia.com.

For further information, feel free to contact me.

Regards,
Lakshminaryana
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Hi, you can contribute up to 100% of your basic salary, and you have to submit Form-2 at the Regional EPF Office. If you need a copy of Form-2, kindly let me know.

There is no limit for contributions to PF. The employee can contribute voluntarily in excess of the prescribed limit of their basic or basic + DA & VDA, as the case may be.

Regards

Apart from the actual amount, if the employee paid an extra amount towards PF, will he get double the amount when he withdraws his PF amount?

Thank you!

It's not like the employer contribution, where the employer will pay a maximum of 12% (780), so the employee can only benefit from what they paid.

Thanks and regards,
Lakshminaryana

In my opinion, though there is no upper limit prescribed under the EPF & MP Act, the Income Tax Department may have some queries. However, the employer will have to give consent regarding their share and the deposition of administrative charges to the RPFC.

Regards,
A.K. Chandok
RPFC (Retd.)

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The standard contribution prescribed by EPF is 12% of Basic+DA or VDA. An employee can contribute a maximum of 20% towards EPF, but the employer's contribution shall be restricted to 12% only. As far as I know, the 8% extra contribution by the employee towards PF shall attract income tax.

Regards,
Naganand