Dear Friends,
Please give me a clarification regarding PF contribution by employee. One of my client's company is deducting only Rs.780/- from the employee and also contributing Rs.780/- from company's side. Is there any rule such that Employer can deduct Rs..780/- from the employee? Or 12% need to be deducted? Normally the Employee will contribute 12% on basic and the Employer has an option for contributing Rs.780/- in case the employee's basic is Rs.6500/- or above or 12% .
Please clarify.
regards,
Krishna T B R
From India, Hyderabad
3Please give me a clarification regarding PF contribution by employee. One of my client's company is deducting only Rs.780/- from the employee and also contributing Rs.780/- from company's side. Is there any rule such that Employer can deduct Rs..780/- from the employee? Or 12% need to be deducted? Normally the Employee will contribute 12% on basic and the Employer has an option for contributing Rs.780/- in case the employee's basic is Rs.6500/- or above or 12% .
Please clarify.
regards,
Krishna T B R
From India, Hyderabad
Hi, It depends on co. to co. Many co’s fix their PF amount which 780/- and many co’s make the contribution on actual basic amount. Both are optional.
From India, Pune
From India, Pune
If PF contribution of Rs.780/- is deducted from employee by employer, then it means the company is meeting statutory obligation according to
Employees Provident Fund & Miscellenaeous Provisions Act,1952. However, employees can opt for higher rate than 12% as their contribution
and such additional contribution goes to VPF. Companies can opt to make contribution of higher amount than the ceiling amount of Rs.6500/-
But this is purely optional, not compulsory.
Thanks
R K Nair
From India, Aizawl
Employees Provident Fund & Miscellenaeous Provisions Act,1952. However, employees can opt for higher rate than 12% as their contribution
and such additional contribution goes to VPF. Companies can opt to make contribution of higher amount than the ceiling amount of Rs.6500/-
But this is purely optional, not compulsory.
Thanks
R K Nair
From India, Aizawl
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf