Go AD-Free with CAclubindia Pro and get Daily WhatsApp Updates. Subscribe Now!

Unequal PF contribution by employee & employer

This query is : Resolved

Mehul (Querist)
Follow

22 April 2009 Suppose one employee is drawing Basic pay of Rs. 24,000 per month. Employer contribute to PF max – 12% of 6500 = 780/- and employee contributes 12% of 24,000 = 2880/-. So here employee's and employer’s contribution to PF is different. And in the same company for second employee with same basic of Rs.24000/- employer’s contribution to PF is Rs.780/- & employee also contributes Rs.780/-.

So in first employee's case contribution by employer and employee is different and in second employee's case contributions are same by both employee and employer but differ from practice following for fist employee's case.

Is this allowed by RF department?
Can employee contribute 12% of 24000 and employer contribute 12% of 6500 (max limit)

Please revert.

Regards,
Mehul.

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)
Follow

22 April 2009 As per PF act PF is applicable on basic rs.6500/- their after employer discration to applie that. so employer contribution is limited to 6500*12%=780. their after his own discration to contribute or not but upto 12% of basic + da as per IT act.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok