Hi Team, Can an employee contribute more than 12% to the EPF scheme? if yes which form needs to be submitted to the EPF office?
From India, Bangalore
From India, Bangalore
Yes, an employee is allowed to contribute more than 12% of their basic pay in the PF fund. Any employee can increase his monthly contribution up to 100% of basic salary.
PF Deduction is made by employee as well as employer. An employer is not bound to increase the PF contribution, if the employee wants to increase it.
For example: There is an employee whose total (employee + employer) contribution for PF is Rs 1600. Both the employer and employer contribute Rs 800 each.
Now if the employee wants to double (24%) the PF contribution (as Rs 1600). It would be done, but the employer will continue to pay the same amount as before Rs 800, unless the salary of the employee is not revised/ incremented. The employee can benefit from double interest of PF contribution.
Get more information about PF and its deduction rules at https://empxtrack.com/blog/esi-pf-statutory-compliance/
4PF Deduction is made by employee as well as employer. An employer is not bound to increase the PF contribution, if the employee wants to increase it.
For example: There is an employee whose total (employee + employer) contribution for PF is Rs 1600. Both the employer and employer contribute Rs 800 each.
Now if the employee wants to double (24%) the PF contribution (as Rs 1600). It would be done, but the employer will continue to pay the same amount as before Rs 800, unless the salary of the employee is not revised/ incremented. The employee can benefit from double interest of PF contribution.
Get more information about PF and its deduction rules at https://empxtrack.com/blog/esi-pf-statutory-compliance/
Yes same can be done through Voluntary PF deduction, which can be upto 88% of Basic & DA
From India, New Delhi
From India, New Delhi
Employees are at liberty to contribute more than the statutory rate of PF, that is, 12%.
Contributions of such type shall be made in VPF (Voluntary provident Fund). But there shall be no change in the contribution of Employer.
From India, Aizawl
Contributions of such type shall be made in VPF (Voluntary provident Fund). But there shall be no change in the contribution of Employer.
From India, Aizawl
Employee can increase his share of PF Contribution ie called VPF contribution as per his choice. However employer is not bound to increase his share of contribution
From India, Delhi
From India, Delhi
A little query from my side, please try to reply
1)
Person A is employed and his Gross salary 40000/- Basic+DA salary 26000/-
The establishment follows the ceiling of 15000/- so from both sides 12% is paid i.e employer 1800/- employee 1800/- total 3600
Now A writes to company for contribution 26000/- in place of 15000/- ... specify the situation under the VPF
2)
Person X is employed and his Gross salary is 9000/- Basic + DA salary = 6000/-
The establishment follows 15000/- ceiling and both sides 12% paid @720 each = 1440
Now X writes to company for contribution on 9000/- instead of 6000 ..specify the situation under the VPF
1)
Person A is employed and his Gross salary 40000/- Basic+DA salary 26000/-
The establishment follows the ceiling of 15000/- so from both sides 12% is paid i.e employer 1800/- employee 1800/- total 3600
Now A writes to company for contribution 26000/- in place of 15000/- ... specify the situation under the VPF
2)
Person X is employed and his Gross salary is 9000/- Basic + DA salary = 6000/-
The establishment follows 15000/- ceiling and both sides 12% paid @720 each = 1440
Now X writes to company for contribution on 9000/- instead of 6000 ..specify the situation under the VPF
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