PF Ceiling Amount

sugarcoated15

Dear all,
Please tell me if the basic salary of an employee is more than 6,500 Rs. (lets say 8,000 Rs.) so his PF amount would be deducted on 8000 Rs (i.e. 12% of 8000) or it would be flat on 6500?
Thanks

abbasiti

Dear friends,
The statutory requirement is on ceiling limit. But if employee and employer wish, the contribution can be on actual salary.
Abbas.P.S

fc.vadodara@nidrahotels.com

I echo Abbasiti the statutory requirement is on the ceiling limit of Rs. 6500/- but if the employer and employee wish to contribute on actual Basic of Rs. 8000/- they can do so, there is no harm in it.

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