PF Deduction Limit

Rs. 4800/-

As per PF Act the option is open to limit PF contribution upto the salary of Rs 6,500/=  i.e. Rs 780/= however, if employer and employee with the mutual consent pay PF contribution on the actual Basic over and above the prescribed limit of Rs 6,500/= it is allowed

basic 40000  12% =4800 ok

balance 12%  from employer side

8.33% & 3.67%  portion  clarification required

on 780  sir. please help on this

Originally posted by : HARI SHANKER KUMAR
	Good question. I have a further doubt on this matter. I remember reading somewhere that only the employers' contribution is restricted to 12% on 6500/- while the employee is mandatorily required to contribute 12% on actual basic. Can anyone clarify how far this stance is true?

not true

either employee/employer both agree mutually to contribute the PF above 6500 or the follow the ceiling of 6500, if above 6500 is agreed then both have to contribute their shares.

Dear sir

My basic salary was rs 7200.

i am liable to deduction of provident fund

plz tell me

maid id :- vmokate @ yahoo.com

I want to ask if salary of employee is 7000p.m and P.F deduct is Rs. 780 p.m is it correct?

and whether the limit of Rs. 780 PF deduction is upto salary of Rs. 6500p.m or it is upon the employee to deduct the PF amount? 

Please reply ASAP..