Hi, Friends please guide me about the maximum limit for Voluntarily PF contribution????????
From India, Mumbai
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1From India, Mumbai
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It is 6500; any person's salary and allowances above 6500 are treated as an "Excluded employee" under the PF Scheme 1952, and membership to PF is not mandatory for them. Please consider the limit of ESIC, which is 15000 PM. One is out of the PF net but not out of ESIC.
Please see Section 2 (f) on page 19 of the attachment and Chapter IV on page 33 as well.
Thanks,
Anil
From India, Bhopal
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Please see Section 2 (f) on page 19 of the attachment and Chapter IV on page 33 as well.
Thanks,
Anil
From India, Bhopal
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Sir , Thanks for the information just want to clear above 12% contribution to PF if one decides to contribute more amount for PF VOLUNTARLY what is the maximum limit for that?????????
From India, Mumbai
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From India, Mumbai
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There is no limit. It is subject to the discretion of the Regional PF Commissioner. Hence kindly contact with the Office of the Regional PF Commissioner. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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If your query is about the wage limit for an employee who wants to contribute on wages exceeding Rs. 6500, Mr. Abbas has clarified it. If your query is whether an employee can contribute more than 12% of wages, he can also do so, but the employer is not obligated to contribute more than 12%.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Thanx to all, I have 01 quary :- if employee contribute 100 % basic to P.F.then it wolud be in which account , pls.share interest rate on it & role of employer in it ? Pls. share if know.............
From India, Velluru
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From India, Velluru
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(Fact Checked)-The employee's voluntary contribution to PF is part of the EPF account, earning EPF interest rates. The employer's role is to facilitate this process. (1 Acknowledge point)
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Dear Sir, if an employee wants to contribute more than 12% of the basic salary, will the interest earned on this amount still be tax-free?
Example:
- Basic salary: ₹50,000/-
- Statutory contribution: 12% of basic = ₹6,000
- Voluntary contribution: ₹4,000
- Total annual employee's contribution = ₹120,000/-
- ₹100,000 is allowed. Is interest on ₹20,000 taxable?
Kindly clarify.
Regards,
SC Verma
GM HR
From India, Hyderabad
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Example:
- Basic salary: ₹50,000/-
- Statutory contribution: 12% of basic = ₹6,000
- Voluntary contribution: ₹4,000
- Total annual employee's contribution = ₹120,000/-
- ₹100,000 is allowed. Is interest on ₹20,000 taxable?
Kindly clarify.
Regards,
SC Verma
GM HR
From India, Hyderabad
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Only employer contributions in excess of the statutory limit would be taxable. As regards voluntary contributions, there is no differentiation in terms of interest entitlement and taxability; it would be the same as a normal contribution. Any withdrawal before 5 years of continuous contribution would be taxable in the hands of the employee.
From India, Bangalore
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From India, Bangalore
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I am surprised to see 100% and that there is no limit, etc. It used to be a 10% maximum some fifteen years back. When the contribution was 10%, in other words, the employees' contribution along with their voluntary contribution shall not exceed 20%. When the act was amended to 12%, I do not think that the maximum limit was changed to 22%. The maximum ceiling continued to be 20%. In other words, the employees' compulsory contribution will be 12%, and the voluntary contribution will be restricted to 8%. I will examine whether there have been any amendments.
If it is restricted to Rs 6500, the employers' contribution will be 12% (of which 8.33% will be for FPS and the balance in the PF account), the employees' contribution will be 12%, and the Voluntary Contribution will be 8% on Rs 6500. If it is not restricted to Rs 6500, the employers' contribution will be 12% (8.33% of Rs 6500 will be set aside towards the Pension scheme, and the balance will be credited to PF). The employees' contribution will be 12% credited to PF, and the Voluntary Contribution will be a maximum of 8%.
Regards,
T. Sivasankaran.
From India, Chennai
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If it is restricted to Rs 6500, the employers' contribution will be 12% (of which 8.33% will be for FPS and the balance in the PF account), the employees' contribution will be 12%, and the Voluntary Contribution will be 8% on Rs 6500. If it is not restricted to Rs 6500, the employers' contribution will be 12% (8.33% of Rs 6500 will be set aside towards the Pension scheme, and the balance will be credited to PF). The employees' contribution will be 12% credited to PF, and the Voluntary Contribution will be a maximum of 8%.
Regards,
T. Sivasankaran.
From India, Chennai
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Dear friends, There is no barrier in terms of percentage also for voluntary contribution to PF, but subject to the discretion of the RPFC. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Maximum Contribution Towards VPF
The maximum contribution allowed towards Voluntary Provident Fund (VPF) is 100% of your basic salary plus dearness allowance (DA).
It is advisable to denote it as a percentage of the Basic + DA (similar to the statutory 12% of Basic + DA) to ensure a proportional deduction in case of a raise in the DA.
VPF will attract the same interest rates as the Employee Provident Fund (EPF). However, the employer will only match the statutory 12% of the Basic + DA.
Regards,
Rajusiachen
From India, Coimbatore
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The maximum contribution allowed towards Voluntary Provident Fund (VPF) is 100% of your basic salary plus dearness allowance (DA).
It is advisable to denote it as a percentage of the Basic + DA (similar to the statutory 12% of Basic + DA) to ensure a proportional deduction in case of a raise in the DA.
VPF will attract the same interest rates as the Employee Provident Fund (EPF). However, the employer will only match the statutory 12% of the Basic + DA.
Regards,
Rajusiachen
From India, Coimbatore
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(Fact Checked)-The user reply is [B]correct[/B] regarding the maximum contribution allowed towards Voluntary Provident Fund (VPF) being 100% of basic salary + dearness allowance (DA). Additionally, suggesting to denote the contribution as a percentage of Basic+DA is a good practice for proportional deduction. There is no need for an amendment. (1 Acknowledge point)
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Provident Fund - Excluded Employee - Definition.pdf
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(Fact Checked)-[B]Response[/B]: The employee can contribute more than 12% voluntarily to PF. However, the employer is not obligated to match this additional contribution. (1 Acknowledge point)