PF contribution

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CA Ashutosh Kumar Mishra

CA Ashutosh Kumar Mishra (Querist)
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18 December 2008 WHAT IS THE maxium contribution from employer & employee as per pf act.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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18 December 2008 Provident Fund:(Employer & Employee)

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,)

CA Ashutosh Kumar Mishra

CA Ashutosh Kumar Mishra (Querist)
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18 December 2008 if the salary of employee more than 6500 than on what amount the calculation can be calculate for Employer & employee contribution.

CA Ashutosh Kumar Mishra

CA Ashutosh Kumar Mishra (Querist)
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18 December 2008 other thing the deduction of pf is optional for employee. if yes what is the maximum and minimum limit.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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18 December 2008 In case the salary is more than Rs.6500 then deduct PF on Rs. 6500 which in any case is optional

CA Ashutosh Kumar Mishra

CA Ashutosh Kumar Mishra (Querist)
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18 December 2008 if the salary of employee is 7000 and the employee not want to deduct the pf is it possible.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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22 December 2008 Yes, the employee may opt as such

K V Subba Rao

K V Subba Rao (Expert)
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03 February 2009 Membership of PF is not compulsory for the employees who are appointed on salary (Basic+DA) above Rs.6,500/- pm. Such employee can be member only if his employer binds himself in writing to pay the dues under the Act in respect of him and the employee also agrees for deduction of his contribution from his pay.

But where, after becoming member of PF, employee's salary gets increased subsequently to over Rs. 6,500 pm, his membership of PF does not end- but continues, with the limitation that compulsory pf contributions get freezed on pay upto 6,500/-.

Contribution on the excess pay is optional for employee.

(Source: https://www.epfopune.gov.in/pdf%5Cepf_law.pdf.)

Hope the above rule position clarifies the query

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