Dear Jessica,
VPF is the Voluntary Provident Fund Contribution, Employer doesn't contribute towards the extra Percentage of Provident Fund contributed by the employee.
Employer has the liability for only 12%. Which is mandatory as per the EPF Act.
Also VPF contribution is purely an option opted by the employee himself, you can't go for VPF contribution of your own.
Hope this will clear your query.
From India, Delhi
77VPF is the Voluntary Provident Fund Contribution, Employer doesn't contribute towards the extra Percentage of Provident Fund contributed by the employee.
Employer has the liability for only 12%. Which is mandatory as per the EPF Act.
Also VPF contribution is purely an option opted by the employee himself, you can't go for VPF contribution of your own.
Hope this will clear your query.
From India, Delhi
I feel the employer is obligatory to pay max of Rs.780/- only towards PF Contribution irrestpective of Basic pay which crosses Rs.6500/- or more. My boss whose monthly basic is 1 lac is getting dedcuted Rs.780/- as employer contribution only.
Manikumar
From India, Bangalore
Manikumar
From India, Bangalore
The employer side has limit to contribute. But employee can contribute on 100% (VPF) from his side on basic + DA. However, only 541 amount goes to pension fund. Best Regards Prashant Patil
From India, Nagpur
From India, Nagpur
in my company we deduct 6% from employee salary and same percent is added by employer as well equal 12% per month
From Pakistan
From Pakistan
Dear Mr. Rajeev Verma,Whatever you have explained to Ms. Chitra, about the PF is perfectly alright.ThanksA. R. AnsariManager - HRAvaant Pharmaceuticals Pvt. Ltd.Mumbai022 - 2835 4415
From Qatar, Doha
From Qatar, Doha
Dear Friend,
Kindly note the PF contb. details as per below:
Basic + VDA (DA) @ 12%, where as 8.33% Employee Provident Fund & 3.67% FPF, this both employee contb., whereby employer also to cotb. in the same kitty 12% (8.33% (Employee Pention Fund+3.67%FPB).
Max Lmt of Basic 6500/- in that case max. Pf cont. 541/- EPF and balance will go to FPF. (780)/-
However, employee can volenteer contb. in PF @12%.
Regards,
Deepak Gehlot
From India, Delhi
Kindly note the PF contb. details as per below:
Basic + VDA (DA) @ 12%, where as 8.33% Employee Provident Fund & 3.67% FPF, this both employee contb., whereby employer also to cotb. in the same kitty 12% (8.33% (Employee Pention Fund+3.67%FPB).
Max Lmt of Basic 6500/- in that case max. Pf cont. 541/- EPF and balance will go to FPF. (780)/-
However, employee can volenteer contb. in PF @12%.
Regards,
Deepak Gehlot
From India, Delhi
The following are the statutory rate of contribution under PF:
1a). Employer's --- @10% (for sick companies and where PF Act is made applicable voluntarily)
b) Employer's ---- @ 12% (all other cases)
Out of this 10%/12% 8.33% is diverted to pension fund and balance
1.67%/3.67% is diverted to providend fund.
- However, employer's contribution is restrcted max to 12% of Rs6,500(Basic+DA+Retaining Allowance)
-Also if the employer wishes to contribute on a higher salary he, can do so
but, contribution to pension fund will be restricted to 8.33% of Rs.6,500
and balance will be diverted to PF.(Rs.541)
- The employee does not contribute to the pension fund but the CG does
2.The employee's contribution is from his own money(subject to minimum of 10%/12%) and details whereof are to be provided in Form 3A and 6.
3.The benefits available under the PF&Misc Prov Act 1952 is a 3 in 1 benefit.[Provident Fund, Pension Fund and EDLI]
4.w.e.f. 01/11/1990 an employee is entitled to PF benefits from DOJ
5.After attaining 58 years of age all contributions are diverted to provident fund ie 10%/12%
NEXT-- HOW TO WITHDRAW/SETTLE YOUR PF ACCOUNT
From India, Delhi
1a). Employer's --- @10% (for sick companies and where PF Act is made applicable voluntarily)
b) Employer's ---- @ 12% (all other cases)
Out of this 10%/12% 8.33% is diverted to pension fund and balance
1.67%/3.67% is diverted to providend fund.
- However, employer's contribution is restrcted max to 12% of Rs6,500(Basic+DA+Retaining Allowance)
-Also if the employer wishes to contribute on a higher salary he, can do so
but, contribution to pension fund will be restricted to 8.33% of Rs.6,500
and balance will be diverted to PF.(Rs.541)
- The employee does not contribute to the pension fund but the CG does
2.The employee's contribution is from his own money(subject to minimum of 10%/12%) and details whereof are to be provided in Form 3A and 6.
3.The benefits available under the PF&Misc Prov Act 1952 is a 3 in 1 benefit.[Provident Fund, Pension Fund and EDLI]
4.w.e.f. 01/11/1990 an employee is entitled to PF benefits from DOJ
5.After attaining 58 years of age all contributions are diverted to provident fund ie 10%/12%
NEXT-- HOW TO WITHDRAW/SETTLE YOUR PF ACCOUNT
From India, Delhi
Dear Rajeev,
as far as VPF concerned any employee can contribute up to Rs. 9000/month or Rs. 108000.00 but for annualm saving under IT act under sec 80C saving consider Rs. 100000.00 only but one thing more u keep in your mind that total deductions are not more than 75% of total wages.
From India, Delhi
as far as VPF concerned any employee can contribute up to Rs. 9000/month or Rs. 108000.00 but for annualm saving under IT act under sec 80C saving consider Rs. 100000.00 only but one thing more u keep in your mind that total deductions are not more than 75% of total wages.
From India, Delhi
PF Limit for Employee:
Dear All,
1.In terms of section 6 of EPF&MP Act 1952, the percent of contribution to the fund is 12% of basic wages + DA.
2. The employer shall pay his contribution of 12% of basic+DA and the employee's share of 12% upfront and credit to the account of the employee. Then recover the employee's contribution from the salary of the employee.
3.Out of the contribution of employer, 8.33% of wages is diverted to the EPS 95 scheme; this is maintained by the respective territorial PF commissioner.
4.Employer has to contribute 1% of wages to EDLI. There is no employee contribution.
5. Employer has to pay 25% of the contribution amount of EDLI towards administration charges of EDLI.
Hope this clarifies the matter
KS Murthy
From India, Changanacheri
Dear All,
1.In terms of section 6 of EPF&MP Act 1952, the percent of contribution to the fund is 12% of basic wages + DA.
2. The employer shall pay his contribution of 12% of basic+DA and the employee's share of 12% upfront and credit to the account of the employee. Then recover the employee's contribution from the salary of the employee.
3.Out of the contribution of employer, 8.33% of wages is diverted to the EPS 95 scheme; this is maintained by the respective territorial PF commissioner.
4.Employer has to contribute 1% of wages to EDLI. There is no employee contribution.
5. Employer has to pay 25% of the contribution amount of EDLI towards administration charges of EDLI.
Hope this clarifies the matter
KS Murthy
From India, Changanacheri
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