Pf Contribution By Employee

Dear Friends,
Please give me a clarification regarding PF contribution by employee. One of my client's company is deducting only Rs.780/- from the employee and also contributing Rs.780/- from company's side. Is there any rule such that Employer can deduct Rs..780/- from the employee? Or 12% need to be deducted? Normally the Employee will contribute 12% on basic and the Employer has an option for contributing Rs.780/- in case the employee's basic is Rs.6500/- or above or 12% .
Please clarify.
regards,
Krishna T B R

Hi,
It depends on co. to co. Many co's fix their PF amount which 780/- and many co's make the contribution on actual basic amount. Both are optional.

Dear Krishna TBR,
The statutory obligation is 12% on salary upto ceiling limit, which is on today is Rs. 6500 per month. Beyond ceiling limit it is optional, but subject to the will and wish of employee and employer.
Abbas.P.S

If PF contribution of Rs.780/- is deducted from employee by employer, then it means the company is meeting statutory obligation according to
Employees Provident Fund & Miscellenaeous Provisions Act,1952. However, employees can opt for higher rate than 12% as their contribution
and such additional contribution goes to VPF. Companies can opt to make contribution of higher amount than the ceiling amount of Rs.6500/-
But this is purely optional, not compulsory.
Thanks
R K Nair