rajeevbly2004Hi Bhaskar Joshi
Myself Rajeev Kumar Saxena
As far as I know, if you contribute 12% of your basic towards pf contribution, the employer will add same (12%) contribution, which becomes 24% of your basic. 8.33% of your basic goes to pension fund.
And you can contribute max. 12% of your basic towards additional voluntry PF contribution, In this case employer is not liable to contribute the any contribution towords voluntry pf.
Deducted voluntry contribution does not goes to pension fund.
Rajeev Kumar Saxena
From India , Bangalore
Regarding ur querry , when your basic is rs 35000/- , when your employer has not resticted employer contribution to Rs 6500/- which is mandatory, then this will be the situation
Employee contribution -------- Rs 4200/-
(12% on Rs 35000/-)
Employer contribution -------- Rs 4200/- which will be broken into
towards EPS (Employee Pension Scheme 8.33% of Basic limitted to Rs 6500/- which comes to Rs 541/-)
balance (Rs 4200 - Rs 541 = Rs 3969/- will be credited to Employee contribution account and we can enjoy income tax benefits for Rs 8400/- per month.
Apart from this, if one wishes to contribute voluntarily he/she can do it without any limits on his basic i.e Rs 35000/- and he can claim for income tax benefits upto Rs 1 lac
From India , Coimbatore
email@example.comHI Mr. Joshi,
1-If companys has their own PF trust, then it's decleard by the trust that what is Mex. rate of VPF deduction
2- If your PF is with PF depertment then you can contribute additional 88% of your basic. means you can contribute 100% of your basic in PF.
From India , Delhi
sagidaThe maximum PF contribution limit for an employee is 20%. rgds, Sangeeta G.
From India , Pune
KalijanniThere is no restriction for deduction of VPF any one can contribution his 100% salary in PF. But as per the Minimum wage Act, the deductions shall not be exceed 1/3rd of the gross wage, as per that you have to dicided how much contribution will be contributed under VPF
From India , Guntur
varadanHi Mr Baskar Joshi
There is no restriction for voluntary contribution.
As per Sec 6 of the EPF Act and Para 29 of the scheme, an employee who desires to make a voluntary contribution can do so. but there will not be matching contribution for the same from employer's side.
There is no limit fixed for the rate of voluntary contribution.
There is no specific mention about the approval to be obtained from the employer ( or from the RPFC ). Yet, it is required, procedurally, mainly because the PF organisation has to pay interest at the rate declared every year for this non-statutory contribution too.
As per the Payment of Wages Act, an employee should take home atleast 50% of his gross monthly salary ( 25% in some cases ). This must be ensured when a person desires to make voluntary contribution. Of course, this will not be applicable to you since your gross salary is more than Rs 10000 pm.
From India , Madras
Arindam0957Dear Mr Basakar Joshi As per I know you can increase your PF contribution upto limit of 97% of your basic salary in the multiple of 5% Regards Arindam
From India , Ranchi
That is totaly upto you how much you want to pay more but one thing you have to know that company will not pay more as you are paying more then your pf you have just give letter to hr that u want to contre that much amount. from next salary they will start paying more pf in your pf account.
From India , Delhi
M SESHADRIone can contribute upto 50% of his Basic + DA salary as additional PF contribution. Ofcourse the Company will contribute only 12%. seshadri
From India , New Delhi