Can I Contribute to VPF Based on My Full Salary or Just the Rs. 15,000 Cap?

Hi,

My employer has capped the PF contribution at 12% of Rs. 15,000/-, i.e., Rs. 1,800/- per month for both employer and employee contributions. Now, I would like to contribute towards VPF. Is it possible to contribute to VPF at a certain percentage of my actual basic salary, or will I only be able to contribute at a certain percentage of Rs. 15,000/-?

Thank you.

Why don't you invest in other 80C Tax-Free funds as the employer may not entertain your request for VPF.

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Hello Sir,

Can my employer deny my request to contribute to VPF? Is that legal?

In Voluntary PF, you can contribute 100% of your actual basic.

Hi Pradeep,

That is true. However, I am informed that since my PF wages are capped at Rs. 15,000, I can contribute only 88% of Rs. 15,000 as VPF. The remaining 12% is already being contributed as an employee contribution to PF. I wish to contribute more than 88% of Rs. 15,000 as VPF. I wish to contribute about 60% of my actual basic. Is that possible?

The employer has to pay PF admin charges on the total contribution. If you contribute at a higher rate than the employer, the employer has to pay higher admin charges. As such, it is not obligatory for the employer to accept higher contributions.

Dear,

You can contribute the maximum of your EPF wages, with 12% being statutory and 88% voluntary. There is no question of PF admin charges as the employer is covering admin charges on EPF wages, i.e., on Rs. 15,000 (1800 Statutory + 13200 Voluntary = Max. Rs. 15,000). Please provide a declaration to the employer to deduct the required percentage. There is no relation.

The employer will contribute the maximum amount of Rs. 15,000 (CC + EPS).

Thanks,
Vidyadhar Bhat

You can contribute 100% of the basic under Section 80C.

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