hi all really cite hr is a very useful forum,helping the hr community a lot..feel happy to be a member of cite hr regards sl.bala sandhya
From India, Madras
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2From India, Madras
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Hi,
As per my knowledge, the total PF contribution is 24% + 1.61% = 25.61%. Here, 24% means 12% from the employee and 12% from the employer. The remaining 1.61% is for PF admin charges. Within the 12% employee contribution, 8.33% is for EPS and 3.67% is for EPF.
Thank you.
From India, Hyderabad
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As per my knowledge, the total PF contribution is 24% + 1.61% = 25.61%. Here, 24% means 12% from the employee and 12% from the employer. The remaining 1.61% is for PF admin charges. Within the 12% employee contribution, 8.33% is for EPS and 3.67% is for EPF.
Thank you.
From India, Hyderabad
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Dear Bala,
The PF contribution is 12% both from the employer and employee sides. The 12% is compulsory, but if an employee wishes, he/she can increase the percentage of their PF share from the basic salary. However, the employer's contribution remains the same. There is no obligation on the employer to increase their share percentage in VPF.
If you need further clarification, please feel free to contact me at skh.1983@gmail.com.
Regards,
Shikha Jain
From India, Bangalore
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The PF contribution is 12% both from the employer and employee sides. The 12% is compulsory, but if an employee wishes, he/she can increase the percentage of their PF share from the basic salary. However, the employer's contribution remains the same. There is no obligation on the employer to increase their share percentage in VPF.
If you need further clarification, please feel free to contact me at skh.1983@gmail.com.
Regards,
Shikha Jain
From India, Bangalore
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Dear,
According to me, an employee can invest a maximum of 27% of his salary (Basic + any DA + Food concession, if any) towards PF contributions. Most companies are obligated to pay 12% PF, giving employees the option to contribute the remaining 15% towards VPF. However, the company contributes only 12%.
For example:
Salary - Rs. 10,000.00
Employee Contribution - Rs. 1,200.00
Company's Share to EPF - Rs. 659.00
Company's Share to FPS - Rs. 541.00
Employee's Share towards VPF (Max 15%) - Rs. 1,500.00
However, given the current interest rates, investment patterns, and the availability of more options such as PPF/MFs, VPF does not hold significant appeal in the employee community. In the past, many employees' savings were solely through 'forced' deductions.
Thanks & Best Regards,
Venkat
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According to me, an employee can invest a maximum of 27% of his salary (Basic + any DA + Food concession, if any) towards PF contributions. Most companies are obligated to pay 12% PF, giving employees the option to contribute the remaining 15% towards VPF. However, the company contributes only 12%.
For example:
Salary - Rs. 10,000.00
Employee Contribution - Rs. 1,200.00
Company's Share to EPF - Rs. 659.00
Company's Share to FPS - Rs. 541.00
Employee's Share towards VPF (Max 15%) - Rs. 1,500.00
However, given the current interest rates, investment patterns, and the availability of more options such as PPF/MFs, VPF does not hold significant appeal in the employee community. In the past, many employees' savings were solely through 'forced' deductions.
Thanks & Best Regards,
Venkat
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Dear all, i want help in forming the hr policy for a new organization as i am also new in this field pls help
From India, Mumbai
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From India, Mumbai
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Dear All,
Enclosed is the document on the salient features of PF. The same can be downloaded from DKM Online - Download Section.
Hope this is helpful to all of us.
Regards,
Atishai
From India, Delhi
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Enclosed is the document on the salient features of PF. The same can be downloaded from DKM Online - Download Section.
Hope this is helpful to all of us.
Regards,
Atishai
From India, Delhi
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Hi all,
Voluntary PF is the contribution of the employee's own funds and not from the employer's side, with no limit. In our company, the contribution is restricted and compulsory at 12% from the employer's side, but employees can contribute more than 12%.
Thank you,
Tajender K. Bajaj
From India, Dehra Dun
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Voluntary PF is the contribution of the employee's own funds and not from the employer's side, with no limit. In our company, the contribution is restricted and compulsory at 12% from the employer's side, but employees can contribute more than 12%.
Thank you,
Tajender K. Bajaj
From India, Dehra Dun
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Hi, Can the employer restrict himself from paying PF contribution to employee earniong above Rs.6500. What is the legal procedure? Please update me
From India, Madras
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From India, Madras
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In the EPF Act, there is a limit of Rs. 6500/-, and according to that, employers are required to contribute @ 6500/-. However, if the basic salary of an employee is more than 6500/- at the time of joining and the employee is not in favor of EPF, then the employer has to take Form 11 from the employee. Employers are not required to contribute on the full basic, i.e., above 6500/-. Another point to note is that if an employee is covered under the EPF Act and after an increment, their basic salary increases and exceeds 6500/-, then in this case, the employee is also required to contribute up to Rs. 6500/- during their service.
From India, New Delhi
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From India, New Delhi
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Dear All,
VPF is over and above the statutory rate of 12%, which only the employee contributes to. The employer will not contribute anything towards the employee's VPF contribution. In fact, there is no ceiling on VPF. The entire amount of VPF earns tax benefits for the employee.
From India, Calcutta
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VPF is over and above the statutory rate of 12%, which only the employee contributes to. The employer will not contribute anything towards the employee's VPF contribution. In fact, there is no ceiling on VPF. The entire amount of VPF earns tax benefits for the employee.
From India, Calcutta
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