Is There a Salary Cap for Provident Fund Contributions? Seeking Guidance on Limits and Procedures

Hi seniors, can anyone suggest if there is a maximum limit for salary for PF contribution? If there is a limit, please suggest the procedure for the provident fund for employees.

Hi seniors, can anyone suggest to me if there is a maximum limit on salary for PF contribution? If there is a limit, please suggest the procedure for the provident fund for employees.

There is no maximum limit. The act provides for a capping of ₹6,500 to calculate EPF contribution by the employer.

Your query is not clear and can be read in multiple ways.

PF Contribution Limit and Computation

1. The PF Act provides that where the salary (basic + DA) is above ₹6,500 per month, the PF computation will be done as if the salary is ₹6,500 per month. However, nothing stops the employer and employee from contributing higher amounts.

2. If an employee joins the company at a starting salary of more than ₹6,500 per month and does not have an existing PF account with a previous employer, they are entitled to claim exemption from PF. Note: It is the employee's choice, not the employer's choice.