Understanding Voluntary PF Contributions: Limits, Rules, and Flexibility for Employees

Dear Sir/Madam,

I have the following queries regarding EPF:

1. In case of voluntary coverage under the Act, is it true that employees drawing more than INR 15,000 cannot be enrolled as members? Section 1(4) refers to the majority of employees (which includes excluded employees).

2. What is the limit of the Voluntary PF contribution of employees over and above the EPF? Where is the limit provided? Which rules/circular?

3. How often can the employee change the VPF contribution?

Looking forward to your replies.

Regards, Rashmi

Voluntary Coverage of an Establishment

Voluntary coverage of an establishment means the establishment opts to get registered under the EPF Act and pay contributions for all employees.

Voluntary Contribution

Voluntary contribution refers to paying contributions above the ceiling of 15,000/-, for which both the employee and employer must agree for all employees.

VPF and Changes

VPF, opted for by an establishment to pay EPF on higher payouts, is normally irrevocable. However, based on the merits of the issue, the RO/SRO can consider the request for a hearing. Unless they permit, it cannot be changed.

Thank you for your reply. I am told that the Voluntary Provident Fund contribution can be up to a maximum of 100% of Basic + Dearness Allowance. Where is the limit specified? Can you share the guidelines or rules regarding VPF for employees?

Regards,
Rashmi

Voluntary Coverage

Voluntary coverage means the eligible manpower for coverage is short (below 20) but interested in getting coverage even after that. In any organization, if there are 20 or more excluded employees, the organization is still covered, but the employees are not covered. In that case, the organization may voluntarily cover the excluded employees.

Voluntary Provident Fund (VPF) Contribution

VPF may be 100% of Basic & DA for any employee - employee contribution only.

Regards, S K Bandyopadhyay

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