Can Employees Choose to Limit Their Provident Fund Contribution to Increase Take-Home Pay?

Hi Kavitha, I have a query regarding the contribution towards the provident fund. The basic pay is Rs. 15,000 and the gross pay is Rs. 20,000. The employer is willing to contribute 12% of Rs. 20,000, which amounts to Rs. 2,400.

Is it possible for the employee to limit their contribution to Rs. 1,800, which is 12% of the basic pay, in order to have more take-home pay? I would appreciate it if you could provide clarification on this matter.

Thank you,
Kavitha

Hi, both the employee and the employer need to contribute equally, either based on the actual basic salary or limited to a maximum of Rs. 1800.

Thank you very much. I understand it is not a choice of the employee. The employer decides the PF amount subject to a minimum of Rs. 1,800. The employee's deduction cannot go below the employer's, but the employee can increase it if they want.

Hi, to reiterate, both the employee and employer should be equal. However, if the employee wants to contribute more as savings, then the employee has the option of VPF.