Hi, Is there any restriction on PF deduction (i.e. Rs.780/- only) as per Provident Fund Act ? If Yes, please provide me the write-up for the same. Thanks....
From India, Mumbai
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5From India, Mumbai
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The PF Act does not restrict the contribution amount, but the employer is not legally bound to pay the PF contribution above 12% of ₹6,500 Basic + DA (i.e., ₹780).
Explanation:
1. If both the employer and employee are willing to contribute more than ₹780, they can do so.
2. If an employee wishes to contribute 100% of their basic salary, but the employer does not agree, then the employer can pay only 12% of the basic salary up to the ceiling of ₹6,500 (Ceiling Value effective from 1/6/2001), as the employer is not legally obligated to pay more than that.
From India, Kota
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Explanation:
1. If both the employer and employee are willing to contribute more than ₹780, they can do so.
2. If an employee wishes to contribute 100% of their basic salary, but the employer does not agree, then the employer can pay only 12% of the basic salary up to the ceiling of ₹6,500 (Ceiling Value effective from 1/6/2001), as the employer is not legally obligated to pay more than that.
From India, Kota
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Provident Fund Act.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf