Understanding Employer PF Contributions: Do They Match Voluntary 24% Employee Contributions?

Hi all,

Please someone help me to provide the employer PF and Employer admin charges breakdown for the following salaries:

1. Gross Salary: 22000, Basic: 7700; PF Employer: ? PF Admin Charges: ?
2. Gross Salary: 40000, Basic: 14000; PF Employer: ? PF Admin Charges: ?
3. Gross Salary: 16000, Basic: 5600; PF Employer: ? PF Admin Charges: ?
4. Gross Salary: 30000, Basic: 10500; PF Employer: ? PF Admin Charges: ?

If the employee voluntarily contributes 24% to PF, does the employer also need to contribute 24%?

Thank you.

Employer's share of EPF Contribution at 12% on Basic Salary, as mentioned by you in your post. Employer's share of EPF Administration charge at 0.65% on Total EPF Wages. If the employee voluntarily contributes 24% to PF, how can the employee contribute to EPF at 24%? Is it with the written consent of the EPF Department? Please elaborate.

Hi SRINATH SAI RAM,

Thanks for taking the time to reply. I wanted to know how to handle it if the employees are willing to contribute 24% instead of the regular 12%. We have not yet approached the EPF department regarding that.

Regarding Additional PF Contributions

Regarding the payment of contributions over and above the fixed amount, it is not allowable by the PF department. If a candidate wishes to contribute more, they must obtain prior permission from both the employer and the Provident Fund Department before proceeding. If everything is approved, the employer is not required to match the higher rate of contributions chosen by the candidate.

Hope this addresses your query.

Yours sincerely,
K. Rama Murthy
Bellary, Karnataka