Hello everyone,
I have some queries regarding Provident Fund (PF). I would appreciate your assistance in addressing them.
1) What is the upper limit for employee contributions to PF?
2) What is the maximum threshold for employer contributions to PF?
3) What is the lower limit for employee contributions to PF?
4) What is the minimum threshold for employer contributions to PF?
5) Is it necessary for both employee and employer contributions to be equal?
6) Based on the PF calculation, the employee contribution amounts to Rs 6000/- for a basic salary of Rs 50000/-. In this scenario, can the employee limit the PF deduction to Rs 21600/- per annum (equivalent to Rs 1800/- per month)? If so, what is the procedure for doing this.
Thank you.
From India, Hyderabad
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I have some queries regarding Provident Fund (PF). I would appreciate your assistance in addressing them.
1) What is the upper limit for employee contributions to PF?
2) What is the maximum threshold for employer contributions to PF?
3) What is the lower limit for employee contributions to PF?
4) What is the minimum threshold for employer contributions to PF?
5) Is it necessary for both employee and employer contributions to be equal?
6) Based on the PF calculation, the employee contribution amounts to Rs 6000/- for a basic salary of Rs 50000/-. In this scenario, can the employee limit the PF deduction to Rs 21600/- per annum (equivalent to Rs 1800/- per month)? If so, what is the procedure for doing this.
Thank you.
From India, Hyderabad
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1) What is the upper limit for employee contributions to PF? There is no upper limit for employee contribution. An employee can contribute any higher amount to his PF.
2) What is the maximum threshold for employer contributions to PF? The employer can also contribute any amount to the employees PF as per the contract of employment.
3) What is the lower limit for employee contributions to PF? The employee should contribute at least 12% of his salary. He can restrict the contribution to 12% of a salary of Rs 15,000.
4) What is the minimum threshold for employer contributions to PF? The employer should contribute at least 12% of the salary payable to each employee. But he can restrict the contribution to 12% of a salary of Rs 15,000.
5) Is it necessary for both employee and employer contributions to be equal? No. But for any contribution below Rs 15,000, it will be equal.
6) Based on the PF calculation, the employee contribution amounts to Rs 6,000/- for a basic salary of Rs 50,000/-. In this scenario, can the employee limit the PF deduction to Rs 21,600/- per annum (equivalent to Rs 1,800/- per month)? If so, what is the procedure for doing this. I take it as: the employee has been contributing 12% on Rs 50,000 but would like to restrict it to 12% on Rs 15,000. Yes, he can do so. For that no formal letter is to be given to the EPF Organization, but the employer shall collect a request from the employee.
From India, Kannur
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47612) What is the maximum threshold for employer contributions to PF? The employer can also contribute any amount to the employees PF as per the contract of employment.
3) What is the lower limit for employee contributions to PF? The employee should contribute at least 12% of his salary. He can restrict the contribution to 12% of a salary of Rs 15,000.
4) What is the minimum threshold for employer contributions to PF? The employer should contribute at least 12% of the salary payable to each employee. But he can restrict the contribution to 12% of a salary of Rs 15,000.
5) Is it necessary for both employee and employer contributions to be equal? No. But for any contribution below Rs 15,000, it will be equal.
6) Based on the PF calculation, the employee contribution amounts to Rs 6,000/- for a basic salary of Rs 50,000/-. In this scenario, can the employee limit the PF deduction to Rs 21,600/- per annum (equivalent to Rs 1,800/- per month)? If so, what is the procedure for doing this. I take it as: the employee has been contributing 12% on Rs 50,000 but would like to restrict it to 12% on Rs 15,000. Yes, he can do so. For that no formal letter is to be given to the EPF Organization, but the employer shall collect a request from the employee.
From India, Kannur
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