Employers contribution to pf

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Querist : Anonymous

Querist : Anonymous (Querist)

16 March 2018 Is it necessary to have equal contribution to PF by employee and employer.
My(employee) contribution to PF is 12% (Rs.13140) of the Basic Salary (plus DA), however my employer's contribution to PF is only Rs.1800. Is it OK to have different contribution to PF from employee and employer.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

16 March 2018 Yes calculation is Ok , Employer has to give 12% on Basic+DA as per Act .8.33% pension +3.67% PF , Employer may contribute more towards PF

Querist : Anonymous

Querist : Anonymous (Querist)

16 March 2018 Yes, I also agree that employer has to contribute 12% of Basic+DA.
But in case mentioned above 12% of Basic+DA is Rs. 13140/-, which is only contributed by employee Whereas, the employer is contributing only Rs. 1800/-. i.e.
Employee contribution- Rs. 13140/- (12% of Basic+DA)
Employer contribution - Rs. 1800/-.
Why this difference? Is it not mandatory for employer to contribute equivalent to employees contribution.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

16 March 2018 Maximum he has to pay 12% on ceiling Rs.15000/- Salary as per PF act. Basic +Da which comes to Rs.1800/- Same was remitted by employer

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

16 March 2018 @Anonymous
There is no requirement in law that the employee contribution and employer contribution should be equal. As Expert Kaviraja said, the employer should contribute min 12% as per the law. Employee may increase his contribution to save more in his/her retirement fund

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