Hi Sir,
If an employee wishes to contribute more (excess of 12%) amount in PF account, what is the procedure regarding this? Is there any form that needs to be submitted to the PF office? Please guide me as soon as possible.
From India, Howrah
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If an employee wishes to contribute more (excess of 12%) amount in PF account, what is the procedure regarding this? Is there any form that needs to be submitted to the PF office? Please guide me as soon as possible.
From India, Howrah
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Dear Ajoy,
An employee may contribute in excess of 12%, but the employer is not liable to contribute the same. I would request you to discuss this with your HR team along with an application. As per my knowledge, no such form is required.
Thank you.
From India, Bhubaneswar
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138An employee may contribute in excess of 12%, but the employer is not liable to contribute the same. I would request you to discuss this with your HR team along with an application. As per my knowledge, no such form is required.
Thank you.
From India, Bhubaneswar
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An employee can contribute an additional 8% towards PF (Total Max 20%). This additional 8% will be credited to the PF account. There is no need to fill any specific form regarding this.
Thanks and Regards,
Ravindranath
From India, Delhi
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Thanks and Regards,
Ravindranath
From India, Delhi
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When an employee wants to contribute more than the statutory PF (12%), they can do so, but under certain limitations, it may be up to 30% or 20%, which is purely at the employer's discretion. The extra contribution (more than 12%) is called VPF (voluntary PF contribution), which can be exempted under IT sec 80C, as most employees claim IT exemption by following the same practice. This not only exempts IT but also ensures an 8.78% interest annually. Please verify the exact percentage.
I hope I have made an attempt to clarify the situation.
Sarisri
From India, Mumbai
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I hope I have made an attempt to clarify the situation.
Sarisri
From India, Mumbai
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You have to request the RPFC of this area through the employer along with the consent of the employee. After getting approval, then you can contribute more. But one thing the employer is not liable to pay the contribution more than the prescribed limit, i.e., 12%.
From India, Bhubaneswar
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From India, Bhubaneswar
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Can you please explain why the maximum contribution will be only 20%? Where is the clause or restriction? An employee can contribute an additional 8% towards PF (Total Max 20%). This additional 8% will be credited to the PF account. There is no need to fill any specific form regarding this.
Thanks and Regards,
Ravindranath
Posted 4th February 2016
From India, Mumbai
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Thanks and Regards,
Ravindranath
Posted 4th February 2016
From India, Mumbai
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Dear member,
As per my view, PF can be deducted up to 100% of basic (of which 12% is compulsory, EPF, and the balance will be VPF).
Presently, I am deducting 36% (12% + 24%) of my basic. My HR told me there is a limitation of interest over VPF (interest will be allowed only up to 20% VPF). But I have checked and found the EPFO is giving the same interest on EPF and VPF.
No doubt, presently VPF is a big saving tool than any other. EPF attracts good interest. The major point is that in other investments, if you break the premium/payment, the plan will reduce your "Return". In private sector jobs, uncertainty exists. If you take any big policy/investment plan and something adverse happens, and you find/feel you can't continue it in your bad times, the policymaker takes advantage of your situation.
However, in EPF, you have to contribute only while you are in the job, but this will help you in your bad times (if you are jobless and in much need of money, you can withdraw the EPF). Though EPF is a retirement plan, we should not withdraw it until it is a must.
From India, Delhi
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As per my view, PF can be deducted up to 100% of basic (of which 12% is compulsory, EPF, and the balance will be VPF).
Presently, I am deducting 36% (12% + 24%) of my basic. My HR told me there is a limitation of interest over VPF (interest will be allowed only up to 20% VPF). But I have checked and found the EPFO is giving the same interest on EPF and VPF.
No doubt, presently VPF is a big saving tool than any other. EPF attracts good interest. The major point is that in other investments, if you break the premium/payment, the plan will reduce your "Return". In private sector jobs, uncertainty exists. If you take any big policy/investment plan and something adverse happens, and you find/feel you can't continue it in your bad times, the policymaker takes advantage of your situation.
However, in EPF, you have to contribute only while you are in the job, but this will help you in your bad times (if you are jobless and in much need of money, you can withdraw the EPF). Though EPF is a retirement plan, we should not withdraw it until it is a must.
From India, Delhi
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Dear PAN Singh,
There is one restriction, though. The Payment of Wages Act does not allow total deductions to exceed 50% of gross wages. Therefore, your contribution can't exceed that amount, including deductions of EPFs, etc.
I would then suggest using PPF, which is similar but allows you to contribute up to ₹150,000 per year.
From India, Mumbai
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There is one restriction, though. The Payment of Wages Act does not allow total deductions to exceed 50% of gross wages. Therefore, your contribution can't exceed that amount, including deductions of EPFs, etc.
I would then suggest using PPF, which is similar but allows you to contribute up to ₹150,000 per year.
From India, Mumbai
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For vpf, no form is required to submit at EPF. But employer can pay his shate upto 12% only. It is applicable in india
From India, Hyderabad
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From India, Hyderabad
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I need one help from HR team I required VPF -voluntary PF provision in written to show manager & implement for some employee.
From India, Pune
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From India, Pune
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Your employer and you jointly write a letter to pf commissioner of your region. After getting approval from the commissioner you may able to deposit higher pf (12% more) other wise not.
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Sir/Madam,
Employees of my organization want to increase their EPF contribution, which means they are currently contributing 12% of ₹15,000, but they willingly want to contribute 50% of ₹15,000. Is there any provision in the Employees Provident Fund and Miscellaneous Act 1952? Please share the article number (if available) so that we can execute the necessary steps to provide a better saving scheme for the interested employees.
From India, undefined
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Employees of my organization want to increase their EPF contribution, which means they are currently contributing 12% of ₹15,000, but they willingly want to contribute 50% of ₹15,000. Is there any provision in the Employees Provident Fund and Miscellaneous Act 1952? Please share the article number (if available) so that we can execute the necessary steps to provide a better saving scheme for the interested employees.
From India, undefined
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf