Bhaskar Joshi Started The Discussion:
Hi....I am Bhaskar joshi and working as General Manager (Operation & Developement) in a Limited Company. I wanted to know that HOW MUCH WE CAN CONTRIBUTE TO PF OTHER THAN REGULAR 12%? i.e for example my basic is more than 6500. say 35000/-. PF contribution is 12% of my basic and 12% of my employer. Now I wanted to contribute more than regular 12%. So what is the maximum limit fro additional valentery contribution?
u can fill the willing form by pf department, first apprived by the employer and second approval by PF commissioner.Than u can increase the pf deduction %.
It seems there is no ceiling for voluntary contribution. Any amount as desired by the individual may be contributed. However as stipulated by PF authority, the voluntary contribution amount should be separately indicated while filing the annual return by the employer.
Dear Bhaskar Joshi,
As per the EPF Act, 1952, the employees whose basic pay+DA is less than or equal to Rs.6,500/- are statutorily covered under this Act. In respect of employees whose pay+DA exceeds Rs.6,500/- they can voluntarily contribute. However, the contributions (employee as well as employer) shall be limited Rs.6,500/- (Pay+DA) and rate of contribution is 12% each by the employer and the employee on Rs.6,500/-.
As far as my knowledge is concerned, if the employee wants contribute 12% on the actual pay+DA which exceeds Rs.6,500/-, the employer's consent and also the consent of EPF commissioner is required. Similarly to increase the rate of contribution from 12% to certain extent, the consent of employer and also the consent of the EPF commissioner is required to be taken.
K S Srinivas
Dear Mr . Bhaskar,
It is 22 % max. The contribution which shall be paid by the employer to the Fund shall be 12 % percent of the basic wages, dearness allowance and retaining allowance, and the employee’s contribution shall be equal to the contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance if any. However, the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act.
As per PF Act Your contribution could be more than 12% of Basic. Up to Rs. 4200/-pm Over and above you can contribute. As such as per PF Act there is no fixed limit of contribution. Over and above contribution would fall in the category of VPF. However the Employer contribution would not be more than Rs.780/-pm, But if your employer wish to contribute more in your PF Account, the employer can do.
V K Sharma
As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. & retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.
Shakthi Knitting Ltd
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