Hi Team,
I have read once that there is a maximum limit for the PF deduction. Is that correct? It says the maximum limit for PF deduction is 12% of INR 6,500. Please clarify this for me.
Advance Thank you
From India, Hyderabad
I have read once that there is a maximum limit for the PF deduction. Is that correct? It says the maximum limit for PF deduction is 12% of INR 6,500. Please clarify this for me.
Advance Thank you
From India, Hyderabad
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Hi Viyannar, The maximum limit for pf deduction is 12% of 6500 is correct. And also there is an exemption by submitting form No 11.
From India, Bangalore
From India, Bangalore
Dear Mr.Viyannar, Yes there is a limit on PF Contribution & mentioned below: Employee Share: 12% on his Basic Salary Employer Share: 12%
From India, Bangalore
From India, Bangalore
Hi Murali,
Thank you for the information. If there is a limit in place, why are companies deducting more than that amount? In fact, it is a loss for them as well because they also need to pay an equal amount to the employee's PF Account.
From India, Hyderabad
Thank you for the information. If there is a limit in place, why are companies deducting more than that amount? In fact, it is a loss for them as well because they also need to pay an equal amount to the employee's PF Account.
From India, Hyderabad
Hi, Though the maximum is 12% of 6500, it depends on the management decision. Management can decide to contribute and deduct complete 12% on Basic. Regards Akhila
From India, Bangalore
4From India, Bangalore
Rs. 6500 is the maximum limit for EPS and EDLI. As far as the EPF Act is concerned, the deduction of 12% can be done on basic salary + DA/VDA + food concessions + any other allowances, which are undefined, e.g., special allowance and other allowances.
Thanks and regards,
Sumit Kumar Saxena,
9899669071, 0120-4131277
From India, Ghaziabad
Thanks and regards,
Sumit Kumar Saxena,
9899669071, 0120-4131277
From India, Ghaziabad
PF deduction is made at 12% of the basic pay, DA, cash value of food concession, and retaining allowance, if any, subject to a maximum of Rs. 6500 per month as per the Act.
However, voluntary higher contributions are also acceptable by EPFO at the joint request of the member and the employer.
Regards.
From India, Pune
However, voluntary higher contributions are also acceptable by EPFO at the joint request of the member and the employer.
Regards.
From India, Pune
Dear friend, Subject to submission of no objection (Joinr declaration of Er. and Ee.) form under 26(6), it can be deducted on above specified limite (6,500 INR per month) too.
From India, Jaipur
From India, Jaipur
Dear friend,
I am sorry to say that a deduction of more than Rs. 6,500 per month does not depend on the management's decision itself. If an employee does not accept and Form-11 is not submitted, it is not feasible to deduct.
Sathish
Though the maximum is 12% of 6500, it depends on the management's decision. Management can decide to contribute and deduct the complete 12% on Basic.
Regards,
Akhila
From India, Jaipur
I am sorry to say that a deduction of more than Rs. 6,500 per month does not depend on the management's decision itself. If an employee does not accept and Form-11 is not submitted, it is not feasible to deduct.
Sathish
Though the maximum is 12% of 6500, it depends on the management's decision. Management can decide to contribute and deduct the complete 12% on Basic.
Regards,
Akhila
From India, Jaipur
Hi all,
We have a policy that if the BPay is less than or equal to 6500, the Company will contribute its 12% plus administration charges. Consider an employee who is drawing Rs. 6000 per month and currently, the company is contributing 13.61% to PF. In the subsequent month, his basic pay is revised to Rs. 7000.
In this case, should I deduct the entire 25.61% (12% Employer contribution + 12% Employee contribution + 1.61% EDLI + Administration charges) from his CTC, or should I remove it from the PF list?
Please clarify.
RR
From India, Madras
We have a policy that if the BPay is less than or equal to 6500, the Company will contribute its 12% plus administration charges. Consider an employee who is drawing Rs. 6000 per month and currently, the company is contributing 13.61% to PF. In the subsequent month, his basic pay is revised to Rs. 7000.
In this case, should I deduct the entire 25.61% (12% Employer contribution + 12% Employee contribution + 1.61% EDLI + Administration charges) from his CTC, or should I remove it from the PF list?
Please clarify.
RR
From India, Madras
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