Is there any limit to voluntary PF contribution by an employee.
What happens to the employer's contribution in case the employee contributes more than 12%? Is the employer's contribution frozen at 12% or does it increase to 13.61%?
We have received one such request from one of our employees.
Saurabh
From China, Leizhou
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5What happens to the employer's contribution in case the employee contributes more than 12%? Is the employer's contribution frozen at 12% or does it increase to 13.61%?
We have received one such request from one of our employees.
Saurabh
From China, Leizhou
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Dear Employer,
The employer contribution to PF is 12% of Basic + DA + Retaining allowance. The employer limit is fixed, and the ceiling limit is 6500.
Employee contribution: If an employee wants to increase their share in PF, they can do so. The PF Act is not clear on the maximum limit, but PF authorities accept a 12% statutory contribution + 12% voluntary contribution from the employee, and they do not accept any in-between formula. According to the Payment of Wages Act, it states that the total deduction cannot exceed 50% of the employee's salary, including all components.
To increase their contribution in PF, take a written application from the employee clearly stating how much they wish to contribute.
For more HR-related information, please visit: [White Eagle: PF Query](http://kuldeeprathore.blogspot.com/2009/08/pf-query.html)
From India, Hyderabad
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The employer contribution to PF is 12% of Basic + DA + Retaining allowance. The employer limit is fixed, and the ceiling limit is 6500.
Employee contribution: If an employee wants to increase their share in PF, they can do so. The PF Act is not clear on the maximum limit, but PF authorities accept a 12% statutory contribution + 12% voluntary contribution from the employee, and they do not accept any in-between formula. According to the Payment of Wages Act, it states that the total deduction cannot exceed 50% of the employee's salary, including all components.
To increase their contribution in PF, take a written application from the employee clearly stating how much they wish to contribute.
For more HR-related information, please visit: [White Eagle: PF Query](http://kuldeeprathore.blogspot.com/2009/08/pf-query.html)
From India, Hyderabad
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf