Hi Experts, I would require a few clarifications regarding VPF. We are going to start VPF contributions in our organization from April 2020. I need suggestions on the following points from an employer's point of view.
Can we start VPF with a fixed PF deduction?
1. Our organization deducts PF based on the restricted basic option, which means 15000x12% = 1800 pm is fixed for all. Can we start VPF in this case?
Will VPF contribution be fixed or percentage-based?
2. Will VPF contribution be fixed per month or will it be a percentage based on Basic? If it is fixed, then the fixed amount will be deducted every month. However, if it is percentage-based, the amount may vary due to Leave Without Pay and other components.
From India, Delhi
Acknowledge(0)
Amend(0)
Can we start VPF with a fixed PF deduction?
1. Our organization deducts PF based on the restricted basic option, which means 15000x12% = 1800 pm is fixed for all. Can we start VPF in this case?
Will VPF contribution be fixed or percentage-based?
2. Will VPF contribution be fixed per month or will it be a percentage based on Basic? If it is fixed, then the fixed amount will be deducted every month. However, if it is percentage-based, the amount may vary due to Leave Without Pay and other components.
From India, Delhi
Acknowledge(0)Amend(0)
Employee Contribution to VPF
What I practice is as follows:
Suppose an employee wants to contribute Rs 4000 over and above Rs 1800. Then their total contribution will be Rs 4000 + Rs 1800 = Rs 5800, which is 12% of Rs 48,333. If an employee's salary is within this range (Rs 48,333), the employee can contribute up to that amount. In short, the employee can make a maximum contribution of 12% of their salary (12% of the maximum salary).
While generating ECR, keep EPF Wages as Rs 48,333, EPS Wages as Rs 15,000, and EDLI Wages as Rs 15,000.
The UAN#~#Employee name#~#48333#~#15000#~#15000#~#15000#~#5800#~#1250 #~#550#~#0#~#0.
A/C 2 inspection charges will be deducted from EPF wages. We are only contributing the extra employee share; the employer is contributing on Rs 15,000 only.
From India, Pune
Acknowledge(0)Amend(0)
29What I practice is as follows:
Suppose an employee wants to contribute Rs 4000 over and above Rs 1800. Then their total contribution will be Rs 4000 + Rs 1800 = Rs 5800, which is 12% of Rs 48,333. If an employee's salary is within this range (Rs 48,333), the employee can contribute up to that amount. In short, the employee can make a maximum contribution of 12% of their salary (12% of the maximum salary).
While generating ECR, keep EPF Wages as Rs 48,333, EPS Wages as Rs 15,000, and EDLI Wages as Rs 15,000.
The UAN#~#Employee name#~#48333#~#15000#~#15000#~#15000#~#5800#~#1250 #~#550#~#0#~#0.
A/C 2 inspection charges will be deducted from EPF wages. We are only contributing the extra employee share; the employer is contributing on Rs 15,000 only.
From India, Pune
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
VPF and PF Loans .doc