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.
8th November 2008 From India , Madras
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
10th November 2008 From India , Hyderabad
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.
10th November 2008 From India , Delhi
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
13th November 2008 From India , Vasai
Shakthi Knitting Ltd
14th November 2008 From India , New Delhi
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
14th November 2008 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
15th November 2008 From India , Coimbatore
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.
18th November 2008 From India , Delhi
18th November 2008 From India , Guntur
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.
22nd November 2008 From India , Madras
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.
24th November 2008 From India , Delhi