Dear respected seniors,
Please clarify my doubt regarding the PF amount. If the PF amount is fixed at the ceiling of 6500, then every employee contributes 780 even if they receive a basic salary higher than 6500. However, when it comes to receiving the PF amount, it varies from employee to employee, even though they have contributed 780, which is 12% of the ceiling amount of 6500. Please let me know if any other factors can affect the PF.
I would appreciate an early response.
From India, Hyderabad
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1Please clarify my doubt regarding the PF amount. If the PF amount is fixed at the ceiling of 6500, then every employee contributes 780 even if they receive a basic salary higher than 6500. However, when it comes to receiving the PF amount, it varies from employee to employee, even though they have contributed 780, which is 12% of the ceiling amount of 6500. Please let me know if any other factors can affect the PF.
I would appreciate an early response.
From India, Hyderabad
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Dear Sravani,
If an employee contributes 780, the amount received from the provident fund can vary from employee to employee due to the duration and interest on the PF amount based on the duration. Additionally, I would like to inform you that the contribution breakdown is as follows:
- Employee share: 12%
- Employer share: 12%
- Total: 24%
Upon distribution, the breakdown converts to:
- Provident fund: 15.67% (12% + 3.67%)
- Pension: 8.33%
Overall, the total contribution remains at 24%.
Thank you.
From India, Haldwani
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If an employee contributes 780, the amount received from the provident fund can vary from employee to employee due to the duration and interest on the PF amount based on the duration. Additionally, I would like to inform you that the contribution breakdown is as follows:
- Employee share: 12%
- Employer share: 12%
- Total: 24%
Upon distribution, the breakdown converts to:
- Provident fund: 15.67% (12% + 3.67%)
- Pension: 8.33%
Overall, the total contribution remains at 24%.
Thank you.
From India, Haldwani
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Provident Fund - Excluded Employee - Definition.pdf