Reg: employees provident fund

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Jagan mohan (Querist)

08 November 2012 My Query:
1.If my Salary(Basic+DA+Food Allow.) is Rs.6500/- & I Contribute 12% to PF Account..
On a Future Date if my Salary goes to Rs.20000/- Can I contribute only 12% on Rs.6500/- or should I Contribute on Hiked Salary Rs.20000/-?
2.What about Employer Contribution?
3.Till What extent shall the Employer Contribute: Only till Rs.6500/- or no such Limit??

@VaibhavJ

@VaibhavJ (Expert)

08 November 2012 Hi

For PF only BASIC & DA to be considered, till both is below Rs. 6501, PF to be contributed.

If in future when it exceeds Rs. 6500 then there is an option for not to contribute PF both by employer & employee above Rs. 6500 or to cinribute on whole amount of Basic & DA.

Option once exercised can not be roll back.

Pl revert for further query.

Thanks//Vaibhav
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Jagan mohan

Jagan mohan (Querist)

08 November 2012 Sir,
How can we know which we have opted for??
(i.e only upto Rs.6500/- or above Rs.6500/- also)

Jagan mohan

Jagan mohan (Querist)

08 November 2012 Sir,
For the 1st Query, pl give me a clear thought ques' by question..

@VaibhavJ

@VaibhavJ (Expert)

08 November 2012 HI

Generally all co. contributes on amount above Rs.6500 also and doesnot restrict PF contribution to Rs.6500/-, benefit is that you get higher cash flow.

You can ask your employer/HR if you want to know on which amount they will be deducting TDS.

Thanks//Vaibhav
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