Dear Nair ji,
I have an agreement only with your first part i.e. PF Act does not lay down any upper limit for VPF. But with due respect to you, I have disagreement with your second part which says an employee can choose to deposit his entire take home.
I would like to draw your kind attention to section 7(3) of POW Act 1936 which is given below verbatim.
Notwithstanding any thing contained in this Act, the total amount of deductions which may be made under sub section (2) in any wage period from wage of any employed person shall not exceed:
(i) in cases where such deductions are wholly or partly made for payment to co-op. society, 75% of such wage;
(ii) in any other case 50% of such wage.
In one of the old postings of mine, I discussed on this clause.
I have an agreement only with your first part i.e. PF Act does not lay down any upper limit for VPF. But with due respect to you, I have disagreement with your second part which says an employee can choose to deposit his entire take home.
I would like to draw your kind attention to section 7(3) of POW Act 1936 which is given below verbatim.
Notwithstanding any thing contained in this Act, the total amount of deductions which may be made under sub section (2) in any wage period from wage of any employed person shall not exceed:
(i) in cases where such deductions are wholly or partly made for payment to co-op. society, 75% of such wage;
(ii) in any other case 50% of such wage.
In one of the old postings of mine, I discussed on this clause.