Hi, My contribution to PF is Rs. 1100. But company’s contribution to PF is Rs. 559. Why there is such difference??
From India
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From India
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Hi,
Your entire PF contributions go to the PF account, whereas there is a limitation due to the ceiling limit of Rs 780 (Rs 6500 is the maximum limit for PF consideration). Some companies pay PF contributions on 12% of the actual basic of the employee. It is Rs 239 and Rs 541, which makes it Rs 780, and it is the contribution ratio of 8.33% to the pension fund and 3.67% to the PF fund from the employer side. Hence, the management will be making the balance of Rs 239-1100 to your pension fund, whereas your entire contribution of Rs 1100 will be in the PF fund.
Hope this clarifies it for you.
Regards,
R Sudhakar
From India, Madras
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7Your entire PF contributions go to the PF account, whereas there is a limitation due to the ceiling limit of Rs 780 (Rs 6500 is the maximum limit for PF consideration). Some companies pay PF contributions on 12% of the actual basic of the employee. It is Rs 239 and Rs 541, which makes it Rs 780, and it is the contribution ratio of 8.33% to the pension fund and 3.67% to the PF fund from the employer side. Hence, the management will be making the balance of Rs 239-1100 to your pension fund, whereas your entire contribution of Rs 1100 will be in the PF fund.
Hope this clarifies it for you.
Regards,
R Sudhakar
From India, Madras
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PF Pension fund contribution beyond 58 years of age.pdf