Hello everyone,
I have some queries regarding Provident Fund (PF). I would appreciate your assistance in addressing them.
Upper Limit for Employee Contributions to PF
1) What is the upper limit for employee contributions to PF?
Maximum Threshold for Employer Contributions to PF
2) What is the maximum threshold for employer contributions to PF?
Lower Limit for Employee Contributions to PF
3) What is the lower limit for employee contributions to PF?
Minimum Threshold for Employer Contributions to PF
4) What is the minimum threshold for employer contributions to PF?
Equality of Employee and Employer Contributions
5) Is it necessary for both employee and employer contributions to be equal?
Limiting PF Deduction
6) Based on the PF calculation, the employee contribution amounts to Rs 6000/- for a basic salary of Rs 50000/-. In this scenario, can the employee limit the PF deduction to Rs 21600/- per annum (equivalent to Rs 1800/- per month)? If so, what is the procedure for doing this?
Thank you.
From India, Hyderabad
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I have some queries regarding Provident Fund (PF). I would appreciate your assistance in addressing them.
Upper Limit for Employee Contributions to PF
1) What is the upper limit for employee contributions to PF?
Maximum Threshold for Employer Contributions to PF
2) What is the maximum threshold for employer contributions to PF?
Lower Limit for Employee Contributions to PF
3) What is the lower limit for employee contributions to PF?
Minimum Threshold for Employer Contributions to PF
4) What is the minimum threshold for employer contributions to PF?
Equality of Employee and Employer Contributions
5) Is it necessary for both employee and employer contributions to be equal?
Limiting PF Deduction
6) Based on the PF calculation, the employee contribution amounts to Rs 6000/- for a basic salary of Rs 50000/-. In this scenario, can the employee limit the PF deduction to Rs 21600/- per annum (equivalent to Rs 1800/- per month)? If so, what is the procedure for doing this?
Thank you.
From India, Hyderabad
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What is the upper limit for employee contributions to PF?
There is no upper limit for employee contributions. An employee can contribute any higher amount to their PF.
What is the maximum threshold for employer contributions to PF?
The employer can also contribute any amount to the employee's PF as per the contract of employment.
What is the lower limit for employee contributions to PF?
The employee should contribute at least 12% of their salary. They can restrict the contribution to 12% of a salary of Rs 15,000.
What is the minimum threshold for employer contributions to PF?
The employer should contribute at least 12% of the salary payable to each employee. However, they can restrict the contribution to 12% of a salary of Rs 15,000.
Is it necessary for both employee and employer contributions to be equal?
No, but for any contribution below Rs 15,000, it will be equal.
Can the employee limit the PF deduction to Rs 21,600 per annum?
Based on the PF calculation, the employee contribution amounts to Rs 6,000 for a basic salary of Rs 50,000. In this scenario, the employee can limit the PF deduction to Rs 21,600 per annum (equivalent to Rs 1,800 per month). The employee has been contributing 12% on Rs 50,000 but would like to restrict it to 12% on Rs 15,000. Yes, they can do so. No formal letter is required to be given to the EPF Organization, but the employer shall collect a request from the employee.
From India, Kannur
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4537There is no upper limit for employee contributions. An employee can contribute any higher amount to their PF.
What is the maximum threshold for employer contributions to PF?
The employer can also contribute any amount to the employee's PF as per the contract of employment.
What is the lower limit for employee contributions to PF?
The employee should contribute at least 12% of their salary. They can restrict the contribution to 12% of a salary of Rs 15,000.
What is the minimum threshold for employer contributions to PF?
The employer should contribute at least 12% of the salary payable to each employee. However, they can restrict the contribution to 12% of a salary of Rs 15,000.
Is it necessary for both employee and employer contributions to be equal?
No, but for any contribution below Rs 15,000, it will be equal.
Can the employee limit the PF deduction to Rs 21,600 per annum?
Based on the PF calculation, the employee contribution amounts to Rs 6,000 for a basic salary of Rs 50,000. In this scenario, the employee can limit the PF deduction to Rs 21,600 per annum (equivalent to Rs 1,800 per month). The employee has been contributing 12% on Rs 50,000 but would like to restrict it to 12% on Rs 15,000. Yes, they can do so. No formal letter is required to be given to the EPF Organization, but the employer shall collect a request from the employee.
From India, Kannur
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx