Dear Nair ji,
I agree with your first point regarding the PF Act not specifying any upper limit for VPF. However, I respectfully disagree with your second point that suggests an employee can opt to deposit their entire take-home pay.
I would like to bring your attention to section 7(3) of the POW Act 1936, which is quoted below:
"Notwithstanding anything contained in this Act, the total amount of deductions that may be made under subsection (2) in any wage period from the wage of any employed person shall not exceed:
(i) in cases where such deductions are wholly or partly made for payment to a co-op. society, 75% of such wage;
(ii) in any other case, 50% of such wage."
In a previous post of mine, I elaborated on this particular clause.
From India, Mumbai
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2636I agree with your first point regarding the PF Act not specifying any upper limit for VPF. However, I respectfully disagree with your second point that suggests an employee can opt to deposit their entire take-home pay.
I would like to bring your attention to section 7(3) of the POW Act 1936, which is quoted below:
"Notwithstanding anything contained in this Act, the total amount of deductions that may be made under subsection (2) in any wage period from the wage of any employed person shall not exceed:
(i) in cases where such deductions are wholly or partly made for payment to a co-op. society, 75% of such wage;
(ii) in any other case, 50% of such wage."
In a previous post of mine, I elaborated on this particular clause.
From India, Mumbai
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Sir, with practically every employee earning more than Rs. 6,500 per month, they are all out of the ambit of the Payment of Wages Act. So, we have a good number of employees nearing their retirement who are contributing almost their entire take-home salary to PF. Obviously, they have other earning members in their family and are able to manage without the primary income. The incentive is the attractive returns a short-term deposit of 1-1.5 years is fetching, although in many cases, there is not much scope under Section 80C for tax incentives.
From India, Bhopal
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From India, Bhopal
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Payment of wages act is now up to 18,000 per month. Hope that is taken into account.
From India, Mumbai
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From India, Mumbai
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hey Pourna, employer share will be the same. administration charges will be born by employers
From India, Vijayawada
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From India, Vijayawada
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
Voluntary PF.doc