Understanding PF Contributions: Can Employees Contribute More Than the Employer's Limit?

Employer's Monthly Contribution Limit

The employer's monthly contribution is restricted to a maximum amount of Rs 1,800. Even if the employee's BASIC + D.A exceeds Rs 15,000, the employer is liable to contribute only Rs 1,800 (12% of Rs 15,000).

Employee Contribution to PF

Can an employee contribute 12% of his actual BASIC + D.A? Is that right? Or is there any change in PF deduction rules? Please suggest.

Voluntary Provident Fund Contribution

An employee can contribute to the Provident Fund (PF) on his/her Basic + DA, which is more than the statutory limit of ₹15,000 per month. However, the employer will restrict their contribution up to the ₹15,000 limit. The extra contribution by the employee is termed as Voluntary Contribution or VPF.

Regards, S K Bandyopadhyay (WB, HOWRAH) CEO-USD HR Solutions

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