Thread Started by #Bhaskar Joshi

Dear All,
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?
Bhaskar Joshi
8th November 2008 From India , Mumbai
Hi, 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 %. Regards Ghanshyam Pandey:)
8th November 2008 From India , Delhi
Hi Bhaskar,
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
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
10th November 2008 From India , Hyderabad
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.

10th November 2008 From India , Delhi
Hi Joshi, I am Pardeep Kumar Yadav, You can contribute voluntry PF upto 88% of your basic.
11th November 2008 From India , New Delhi
Hai Pradeep, r u sure????????????? rajendra +9873666511 Dear All, from where we get details and acurate about additional valentery contribution on PF Please tell?
11th November 2008 From India , New Delhi
12 % is already deducting from you salary , and remaining 88 % of your basic you can contribute.
if you need any clerification, just read Para 29 EPF scheme.
Pardeep Kumar Yadav
11th November 2008 From India , New Delhi
Mr Bhaskar Joshi,
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
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.
HR Executive
Shakthi Knitting Ltd
14th November 2008 From India , New Delhi
Hi 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
14th November 2008 From India , Bangalore
hai joshi,
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
sakthivel r
15th November 2008 From India , Coimbatore
HI 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.
18th November 2008 From India , Delhi
The maximum PF contribution limit for an employee is 20%. rgds, Sangeeta G.
18th November 2008 From India , Pune
There 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
18th November 2008 From India , Guntur
Hi 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.
22nd November 2008 From India , Madras
Dear 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
24th November 2008 From India , Ranchi
Dear Bhaskar
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.
With Regards
Puneet Bhasin
24th November 2008 From India , Delhi
one can contribute upto 50% of his Basic + DA salary as additional PF contribution. Ofcourse the Company will contribute only 12%. seshadri
24th November 2008 From India , New Delhi
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2017 Cite.Co™