What is the Maximum PF my company can deduct?

Question

What is the maximum PF my company can deduct, i earn 12.5lac yearly and my basic is 65000rs pm .

Answer 1

In respect of establishments employing 20 or more persons and engaged in industry notified under  Section 6  of EPF & MP Act 1952 ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.

Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.

Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.

Any Establishment engaged in manufacturing of  (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

From and out  of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund subjectto maximum of Rs 6500/-

Answer 2

12% of basic (if DA is present - then is is 12% of basic+DA), which is 7800 maximum. Anything beyond this can be deducted only after your written consent and this is termed VPF (Voluntary PF), which is an increase in your contribution and has nothing to do with Employer's share.

PS: For a 12.5 lakh salary, 65000 basic a month is way tpp high; if it is possible you could try to change the pay structure for a more friendly one.

Answer 3

The PF rate is 12% of basic salary. You can contribute more, but employer is not bound to increase their contribution.

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