Dear Friends,
I came to know that the maximum amount going to the Pension Fund is Rs. 750 only, and we will receive a pension based on this amount. Now, I would like to inquire about my situation where both the employer and I contribute Rs. 3000 each month. Could anyone explain what will happen to the remaining amount from the employer's contribution if only Rs. 750 is allocated to the pension? Will we receive the excess amount, or where will it be directed?
Please provide clarification.
Regards, Vikas Verma
From India, Gurgaon
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1I came to know that the maximum amount going to the Pension Fund is Rs. 750 only, and we will receive a pension based on this amount. Now, I would like to inquire about my situation where both the employer and I contribute Rs. 3000 each month. Could anyone explain what will happen to the remaining amount from the employer's contribution if only Rs. 750 is allocated to the pension? Will we receive the excess amount, or where will it be directed?
Please provide clarification.
Regards, Vikas Verma
From India, Gurgaon
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Dear Vikas,
Whatever you are contributing from your salary goes to the provident fund account. The amount that the employer contributes on your behalf is 8.33% of that or Rs. 541 max, which will go to the pension, and the rest will be credited to your PF account along with your own share. So, it is not Rs. 750 as mentioned by you; it is Rs. 541.
Thank you,
J.S. Malik
From India, Delhi
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Whatever you are contributing from your salary goes to the provident fund account. The amount that the employer contributes on your behalf is 8.33% of that or Rs. 541 max, which will go to the pension, and the rest will be credited to your PF account along with your own share. So, it is not Rs. 750 as mentioned by you; it is Rs. 541.
Thank you,
J.S. Malik
From India, Delhi
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PF Pension fund contribution beyond 58 years of age.pdf