Dear All,
One of our employees wants to contribute to VPF. As a company, we will deduct their desired amount from their salary towards VPF. However, I have no idea about how to declare this VPF contribution in the Monthly ECR file. I kindly request you to guide me on this matter.
Thank you.
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1One of our employees wants to contribute to VPF. As a company, we will deduct their desired amount from their salary towards VPF. However, I have no idea about how to declare this VPF contribution in the Monthly ECR file. I kindly request you to guide me on this matter.
Thank you.
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Dear Mr Manoj, Please Clarify what is this VPF, Does this come under EPF? What is the EPF Wages? What is the % Contribution-Employee & Employer.Who has given permission for EPF?
From India, New Delhi
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From India, New Delhi
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Yes, you can contribute VPF contribution. Fill up a related form and add this amount into PF
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Dear Mr Jangir, can you Please let us know which is that Related Form.Please elaborate your reply for information of all of us
From India, New Delhi
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From India, New Delhi
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Dear Manoj-U1,
You have to add the VPF amount to the EPF EE share. There is no provision for showing VPF separately in the ECR now. However, you need to obtain and submit a consent from the employee to EPFO for deducting VPF from their salary.
Thank you.
From India, Mumbai
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You have to add the VPF amount to the EPF EE share. There is no provision for showing VPF separately in the ECR now. However, you need to obtain and submit a consent from the employee to EPFO for deducting VPF from their salary.
Thank you.
From India, Mumbai
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Dear Srinath Sai Ram,
VPF stands for Voluntary Provident Fund. An employee can contribute more than 12% of their salary towards EPF. This voluntary contribution can be a maximum of up to 100% of the salary. However, it is essential to consider the maximum permissible deduction under the Payment of Wages Act.
In this case, the employer's contribution is only 12%. The employee is entitled to interest on it at the same rate as EPF.
Thank you.
From India, Mumbai
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VPF stands for Voluntary Provident Fund. An employee can contribute more than 12% of their salary towards EPF. This voluntary contribution can be a maximum of up to 100% of the salary. However, it is essential to consider the maximum permissible deduction under the Payment of Wages Act.
In this case, the employer's contribution is only 12%. The employee is entitled to interest on it at the same rate as EPF.
Thank you.
From India, Mumbai
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Dear Mr. Akhil,
Thank you for the information. Please let me know the section under which a member can contribute more than the present rate of 12% and can contribute up to a maximum of 100% of their salary.
Present wage ceiling: Rs15,000/-
Present contribution (at 12%): Rs1,800/-
What is the maximum amount an employee can contribute if they are drawing EPF wages of Rs15,000/-? Is there any form we should fill out to inform the PF Department? Please provide all the details for the information of all members.
Thank you.
From India, New Delhi
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Thank you for the information. Please let me know the section under which a member can contribute more than the present rate of 12% and can contribute up to a maximum of 100% of their salary.
Present wage ceiling: Rs15,000/-
Present contribution (at 12%): Rs1,800/-
What is the maximum amount an employee can contribute if they are drawing EPF wages of Rs15,000/-? Is there any form we should fill out to inform the PF Department? Please provide all the details for the information of all members.
Thank you.
From India, New Delhi
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Dear Srinath Sai Ram,
You are requested to read Para 29(2) of the EPF Scheme which is reproduced verbatim as under for your easy reference:
Para 29(2)
The contribution payable by the employee under the Scheme shall be equal to the contribution payable by the employer in respect of such employee:
Provided that in respect of any employee to whom the Scheme applies, the contribution payable by him may, if he so desires, be an amount exceeding ten percent or twelve percent, as the case may be, of his basic wages, dearness allowance, and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act.
What does it mean that the employee can contribute more than 10/12 percent; however, the employer is not under an obligation to pay over and above 10/12 percent payable under the Act.
The contribution by the employee over and above is called VPF.
There are very old circulars (prior to 1975) by EPFO on the permissible maximum VPF contribution which are not easily available today, and if they are available with anyone, they are not legible.
In common practice in VPF, we allow from 8% extra, i.e., a total of 20% to 12% extra, i.e., a total of 24%. However, there are some cases where EPFO has allowed a maximum 100% contribution, i.e., 88% extra.
In this case, the employer has to ensure that the take-home salary, the net amount in the hand of the employee, should not be lesser than what is prescribed under the POW Act. Otherwise, that will be a violation of provisions under the POW Act concerning deductions.
From India, Mumbai
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You are requested to read Para 29(2) of the EPF Scheme which is reproduced verbatim as under for your easy reference:
Para 29(2)
The contribution payable by the employee under the Scheme shall be equal to the contribution payable by the employer in respect of such employee:
Provided that in respect of any employee to whom the Scheme applies, the contribution payable by him may, if he so desires, be an amount exceeding ten percent or twelve percent, as the case may be, of his basic wages, dearness allowance, and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act.
What does it mean that the employee can contribute more than 10/12 percent; however, the employer is not under an obligation to pay over and above 10/12 percent payable under the Act.
The contribution by the employee over and above is called VPF.
There are very old circulars (prior to 1975) by EPFO on the permissible maximum VPF contribution which are not easily available today, and if they are available with anyone, they are not legible.
In common practice in VPF, we allow from 8% extra, i.e., a total of 20% to 12% extra, i.e., a total of 24%. However, there are some cases where EPFO has allowed a maximum 100% contribution, i.e., 88% extra.
In this case, the employer has to ensure that the take-home salary, the net amount in the hand of the employee, should not be lesser than what is prescribed under the POW Act. Otherwise, that will be a violation of provisions under the POW Act concerning deductions.
From India, Mumbai
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Dear Friends,
Further to my post #5 above, I would like to add as follows: When the consent or joint option is not obtained, or permission from the APFC is not received and the EPFO updates its account based on the contributions received, it is deemed that consent, joint option, or permission has been granted (RC Gupta & ors. Vs RPFC in SLP No. 33032-33 of 2015).
From India, Mumbai
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Further to my post #5 above, I would like to add as follows: When the consent or joint option is not obtained, or permission from the APFC is not received and the EPFO updates its account based on the contributions received, it is deemed that consent, joint option, or permission has been granted (RC Gupta & ors. Vs RPFC in SLP No. 33032-33 of 2015).
From India, Mumbai
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