Dear all
Under sec 29(2) of PF Act,,No upper limit of employees' contribution is defined.
Can an employy with basic salary of 30,000 P.M. contribute 20,000 towards his contribution.
Employer will however pay 12% on basic max.
If yes, any law or case law on this.? Will PF dept pay interest on employees' additional voluntry contribution?
regards
Suresh
From India, Nagpur
10Under sec 29(2) of PF Act,,No upper limit of employees' contribution is defined.
Can an employy with basic salary of 30,000 P.M. contribute 20,000 towards his contribution.
Employer will however pay 12% on basic max.
If yes, any law or case law on this.? Will PF dept pay interest on employees' additional voluntry contribution?
regards
Suresh
From India, Nagpur
I am agreed with you.
The employer has only to contribute towards the PF contribution @12% of the basic + DA.
The empolyee can contribute more than 12% and the PF department will give interest on it as on the 1st 12%.
(G K Sharma)
The employer has only to contribute towards the PF contribution @12% of the basic + DA.
The empolyee can contribute more than 12% and the PF department will give interest on it as on the 1st 12%.
(G K Sharma)
Dear sureshjakhotiya,
The maximum percentage an employee contributes is 20% of basic. And yes u will get the interest on your voluntry contribution. But as a matter of fact, your employer will give only his 12 % contribution on basic.
From India, Gurgaon
The maximum percentage an employee contributes is 20% of basic. And yes u will get the interest on your voluntry contribution. But as a matter of fact, your employer will give only his 12 % contribution on basic.
From India, Gurgaon
Dear All,
I am having a query re PF contribution for those who wish to opt for PF scheme voluntarily for tax benefit purpose.
In our organization, one of the employees wish to join PF scheme with basic pay of Rs.57,000. Hence, employee contribution will be Rs.6,840(12% of basic) and employer contribution will be Rs.6,840 (12% of basic). As an employer, we have to pay admin charges of Rs. 775 (1.36% of Rs.57,000). My queries are as below:
1) Do we require to pay any additional admin charges for such higher amount i.e. Rs.57,000(more than ceiling amount) apart from Rs.775?
2) Do we require to provide joint declaration to PF office in above case ? I think it is for those who wish to contribute higher than 12% of basic ?
Grateful if seniours can advise me as soon as possible.
Thanks in advance,
Nikita
From India, Jamnagar
I am having a query re PF contribution for those who wish to opt for PF scheme voluntarily for tax benefit purpose.
In our organization, one of the employees wish to join PF scheme with basic pay of Rs.57,000. Hence, employee contribution will be Rs.6,840(12% of basic) and employer contribution will be Rs.6,840 (12% of basic). As an employer, we have to pay admin charges of Rs. 775 (1.36% of Rs.57,000). My queries are as below:
1) Do we require to pay any additional admin charges for such higher amount i.e. Rs.57,000(more than ceiling amount) apart from Rs.775?
2) Do we require to provide joint declaration to PF office in above case ? I think it is for those who wish to contribute higher than 12% of basic ?
Grateful if seniours can advise me as soon as possible.
Thanks in advance,
Nikita
From India, Jamnagar
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