Hi Sir, If an employee wishes to contribute more (excess of 12%) amount in PF a/c, what is the procedure regarding this. Any form needs to be submitted to PF office.
Please guide me as soon as possible.
From India, Howrah
Please guide me as soon as possible.
From India, Howrah
135
When an employee wants to contribute more than statutory PF (12%) they can make it but under certain limitations may be upto 30% or 20% which is purely on Employer descretion. The extra contribution (more than 12%) is called VPF (voluntary pf contribution) which can be exempted under IT sec 80C, as most of the employees do claim IT exemption following the same practice. It is not only exempting IT but also assures 8.78% (doubt about the %, pls cross check) interest annually.
Hope i made some attempt to clarify you.
Sarisri
From India, Mumbai
Hope i made some attempt to clarify you.
Sarisri
From India, Mumbai
YOU HAVE TO REQUEST THE RPFC OF THIS AREA THROUGH THE EMPLOYER ALONG WITH THE CONSENT OF THE EMPLOYEE. AFTER GETTING APPROVAL THEN YOU CAN CONTRIBUTE MORE. BUT ONE THING THE EMPLOYER IS NOT LIABLE TO PAY THE CONTRIBUTION MORE THEN THE PRESCRIBE LIMIT I.E.12%.
From India, Bhubaneswar
From India, Bhubaneswar
Can you please explain why the maximum contribution will be only 20% ?
Where is the clause or restriction ?
An employee can contribute an additional 8% towards PF(Total Max 20%). This additional 8% will be credited to PF account .There is no need to fill any specific form regarding this.
Thanks and Regards,
Ravindranath
Posted 4th February 2016
From India, Mumbai
Where is the clause or restriction ?
An employee can contribute an additional 8% towards PF(Total Max 20%). This additional 8% will be credited to PF account .There is no need to fill any specific form regarding this.
Thanks and Regards,
Ravindranath
Posted 4th February 2016
From India, Mumbai
Dear member, as per my view PF can be deducted upto 100% of basic. (of which 12% will is compulsory, EPF, and the balance will be VPF).
Presently I m deducting 36% (12%+24%) of my basic. My HR told me there is a limitation of Interest over VPF (interest will be allowed only upto 20% VPF). But i Have checked and found the EPFO is giving same interest on EPF & VPF.
No doubt presently VPF is a big saving tool than any other. EPF attracts good interest. The major point is that in other investment, if you break the premium/payment the plan will reduce your "Return". In private sector jobs are uncertain,. If you take any big policy/investment plant and some adverse happened, and you find/feel you cant continue it in your bad times. The policymaker make use of your situation.
But in EPF you have to contribute only till you are in job, but this will help you in your bad time (if you are jobless and much need money, you can withdraw the EPF). Though EPF is a retirement plan, we shud not withdraw, till it is must.
From India, Delhi
Presently I m deducting 36% (12%+24%) of my basic. My HR told me there is a limitation of Interest over VPF (interest will be allowed only upto 20% VPF). But i Have checked and found the EPFO is giving same interest on EPF & VPF.
No doubt presently VPF is a big saving tool than any other. EPF attracts good interest. The major point is that in other investment, if you break the premium/payment the plan will reduce your "Return". In private sector jobs are uncertain,. If you take any big policy/investment plant and some adverse happened, and you find/feel you cant continue it in your bad times. The policymaker make use of your situation.
But in EPF you have to contribute only till you are in job, but this will help you in your bad time (if you are jobless and much need money, you can withdraw the EPF). Though EPF is a retirement plan, we shud not withdraw, till it is must.
From India, Delhi
Dear PAN Singh,
There is one restriction, though.
Payment of wages act does not allow total deductions to exceed 50% of gross wages.
So your contribution can't exceed that (including deductions of epis, etc).
I would then suggest using PPF which is similar, but allowing you up to ₹150,000 per year
From India, Mumbai
There is one restriction, though.
Payment of wages act does not allow total deductions to exceed 50% of gross wages.
So your contribution can't exceed that (including deductions of epis, etc).
I would then suggest using PPF which is similar, but allowing you up to ₹150,000 per year
From India, Mumbai
For vpf, no form is required to submit at EPF. But employer can pay his shate upto 12% only. It is applicable in india
From India, Hyderabad
From India, Hyderabad
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