Hello Friends please clarify my provident fund (PF) doubts.
1) what is the maximum and minimum contribution that has to be done by employer?
2) if offer letter shows 25000 as basic, can the employer say 6500 will be consdiered as basic for PF contribution by employer? I mean here offer letter shows one basic and employer is considering small amount for his PF contribution.
Thanks & Regards
Ranganath
Maximum contibution is 12% by employer and is allowed as deduction however an employer can give higher contibution but is not allowed so in your case if basic is 25000 the amount allowed as deduction would be 3000.
Employer contribution cannot exceed employee's contribution. And for PF contribution - if Basic is more than 6500, it is calculated for 6500 only.....!!!!!
Correct me if i am wrong.
CAclubindia
