Can an Employee Reduce Their PF Contribution to the Minimum? Seeking Guidance

Hi,

One of our employees is registered under PF and is contributing 12% unrestricted from the date of joining. However, from 1st April 2014, he wishes to restrict his contribution to a minimum. Is this allowed under the provisions of the Provident Fund Act? If yes, please share the relevant notification.

Not possible now. 12% is the mandatory contribution. The opposite is possible. He can contribute more than 12% as VPF - voluntary PF. There are quite a lot of people who are opting for this option as it offers a lot of benefits in the current scenario.

Regards,
A.B.

I assume you mean that he is currently paying 12% of his full salary and wants to reduce that to 12% of ₹15,000. That is allowed.