we want to know what is the maximum pf deduct in any employee salary.
From India, Faridabad
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From India, Faridabad
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Hi,
The PF contribution is 12% of basic subject to a maximum of Rs. 6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer. A 10% deduction is applicable in cases of industries such as sick industries, establishments engaged in the manufacturing of jute, etc. The complete list is provided in the PF Act.
Regards,
Palak
From India, Delhi
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5The PF contribution is 12% of basic subject to a maximum of Rs. 6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer. A 10% deduction is applicable in cases of industries such as sick industries, establishments engaged in the manufacturing of jute, etc. The complete list is provided in the PF Act.
Regards,
Palak
From India, Delhi
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12% from employee side, and 12% from employer side, but can anyone let me know, about PF in I.T sector
From India, Thana
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From India, Thana
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Hi, The PF is deducted on Basic Salary that is 12% and max of PF deduction is only on 6500 i.e 780 and Employer Share is gives that amt in private sector. Byee Praveen Darjeeling :)
From India, Calcutta
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From India, Calcutta
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PF is calculated at 12% on basic + DA. There is no compulsion if basic + DA is more than 6500. But if PF is still deducted, then the pension part, i.e., pension, will be calculated only on 6500, and the remaining amount goes to the provident fund part.
For example, if the basic is 10000, then PF will be 1200. The pension part (employer's share) will only be 541, and the remaining part of PF (employer's share) will go to the provident fund.
Note: 12% of the employee and 12% of the employer, which includes 3.67% as PF and 8.33% as pension.
From India, Mumbai
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For example, if the basic is 10000, then PF will be 1200. The pension part (employer's share) will only be 541, and the remaining part of PF (employer's share) will go to the provident fund.
Note: 12% of the employee and 12% of the employer, which includes 3.67% as PF and 8.33% as pension.
From India, Mumbai
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Hi,
The normal practice is to calculate PF as 12% of basic salary. However, this is only the employer's contribution. Another 12% is deducted as the employee's contribution. So the total is 24%.
As far as I know, there is no maximum limit. For example, if an employee has a basic salary of Rs. 50,000 per month, then 12% comes to Rs. 6,000. Hence, the total amount deducted would be Rs. 12,000.
Thanks and Regards,
Karan
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The normal practice is to calculate PF as 12% of basic salary. However, this is only the employer's contribution. Another 12% is deducted as the employee's contribution. So the total is 24%.
As far as I know, there is no maximum limit. For example, if an employee has a basic salary of Rs. 50,000 per month, then 12% comes to Rs. 6,000. Hence, the total amount deducted would be Rs. 12,000.
Thanks and Regards,
Karan
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12% Of The Basic Salary plus Dearness allowance fron Both side From Employww as well as From Employer side
From India, Mumbai
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From India, Mumbai
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The employee can have a maximum of 100% PF deductible salary (i.e., Basic Salary + DA) deduction towards the Voluntary Provident Fund. This 100% includes the 12% compulsory contribution from the employee towards PF (i.e., 100% - 12% = 88%).
From India, New Delhi
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From India, New Delhi
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ONLY 12 % IS DEDUCTED REST OF THE 12% IS GIVEN BY THE COMPANY NOT DEDUCTED EX.....BASIC 1000RS EMPLOYEE PAYS - 120RS COMPANY PAYS - 120RS
From India, Gurgaon
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From India, Gurgaon
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In case the employee's PF deductible salary is Rs. 1000, the PF contribution would be as follows:
A: By the Employer: 12% = Rs. 120
B: From the Employee: 12% (which is compulsory) = Rs. 120.
If the employee desires, he/she can apply for 100% salary deduction towards PF. This extra contribution is called Voluntary Provident Fund (VPF) and is subject to a maximum of 100% of the PF deductible salary of the employee less the compulsory deduction; i.e., 100% - 12% (compulsory PF) = 88% towards VPF = Rs. 880.
The option of applying for VPF rests with the employee. They can decide whether or not they want to utilize this option and, if yes, up to what percentage. VPF is usually preferred by employees as it is considered an investment under Section 80C of Income Tax.
From India, New Delhi
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A: By the Employer: 12% = Rs. 120
B: From the Employee: 12% (which is compulsory) = Rs. 120.
If the employee desires, he/she can apply for 100% salary deduction towards PF. This extra contribution is called Voluntary Provident Fund (VPF) and is subject to a maximum of 100% of the PF deductible salary of the employee less the compulsory deduction; i.e., 100% - 12% (compulsory PF) = 88% towards VPF = Rs. 880.
The option of applying for VPF rests with the employee. They can decide whether or not they want to utilize this option and, if yes, up to what percentage. VPF is usually preferred by employees as it is considered an investment under Section 80C of Income Tax.
From India, New Delhi
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Hey, There is no difference industry to industry in PF.Emplyeer’s must contribut 12%,Emplyee can go upto 18% percentage.
From India, Madras
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From India, Madras
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Provident Fund - Excluded Employee - Definition.pdf