Hi, Friends please guide me about the maximum limit for Voluntarily PF contribution????????
From India, Mumbai
1From India, Mumbai
it is 6500 any person's salary and allowances above 6500 is treated as an "Excluded employee" under PF Scheme 1952 and membership to pf is not mandatory for him, but please consider the limit of ESIC here it is 15000 PM , so one is out of PF net but not of ESIC,
Please See section 2 (f) on page 19 of the attachment and Chapter IV page 33 also
Thanks
Anil
From India, Bhopal
Please See section 2 (f) on page 19 of the attachment and Chapter IV page 33 also
Thanks
Anil
From India, Bhopal
If your query is what is the wage limit if an employee wants to contribute on the wages exceeding Rs.6500/-, Mr .abbas ha s clarified it. If your query is whether an employee can contribute more than 12% on the wages, he can also do so but the employer is not under obligation to contribute more than 12%.
B.Saikumar
HR & Labour Law advisor
mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advisor
mumbai
From India, Mumbai
Dear Sir,
If employee wants to contribute more than 12% of basic salary, will interest earned on this amount be still tax free?
Example:
Basic salary: 50000/-
Statutory conribution: 12% of basic = 6000
Voluntary contribution: 4000
Total annual employee's contribution = 120000/-
100000 is allowed. Is interest on 20000 is taxable?
Kindly clarify.
SC Verma
GM HR
From India, Hyderabad
If employee wants to contribute more than 12% of basic salary, will interest earned on this amount be still tax free?
Example:
Basic salary: 50000/-
Statutory conribution: 12% of basic = 6000
Voluntary contribution: 4000
Total annual employee's contribution = 120000/-
100000 is allowed. Is interest on 20000 is taxable?
Kindly clarify.
SC Verma
GM HR
From India, Hyderabad
Only employer contribution in excecss of the statutory limit would be taxable. As regards voluntary contribution there is no differentiation in terms of the Interest entitlement and taxability it would be the same as normal contribution - any withdrawal before 5 years of continuous contribution would be taxable in the hands of the employee..
From India, Bangalore
From India, Bangalore
I am surprised to see 100% and there is no limit etc
It used to be 10% maximum some fifteen years back. When the contribution was 10% In other words, employees contribution alongwith his Voluntary contribution shall not exceed 20%. When the act was amended to 12%, I do not think that the maximum limit was changed to 22%. The maximum celiing continued to be 20% In other words, Employyes compulsory contribution will be 12% and voluntary contribution will be restricted to 8%.I will examine whether there had been any amendments
If it is restricted to Rs 6500/
Employers contribution 12% ( nof which 8.33 will be for FPS and balance in PF account)
Employees contribution 12%
Voluntay Contribution 8% on Rs 6500/
If it is not restricted to Rs 6500
Employers contribution 12% (8,33% of Rs 6500 will be set aside towards Pension schemeand the balance will be credited to PF)
Employees contribution 12% will be credited to PF
Voluntary contribution Maximum of 8%
T Sivasankaran
From India, Chennai
It used to be 10% maximum some fifteen years back. When the contribution was 10% In other words, employees contribution alongwith his Voluntary contribution shall not exceed 20%. When the act was amended to 12%, I do not think that the maximum limit was changed to 22%. The maximum celiing continued to be 20% In other words, Employyes compulsory contribution will be 12% and voluntary contribution will be restricted to 8%.I will examine whether there had been any amendments
If it is restricted to Rs 6500/
Employers contribution 12% ( nof which 8.33 will be for FPS and balance in PF account)
Employees contribution 12%
Voluntay Contribution 8% on Rs 6500/
If it is not restricted to Rs 6500
Employers contribution 12% (8,33% of Rs 6500 will be set aside towards Pension schemeand the balance will be credited to PF)
Employees contribution 12% will be credited to PF
Voluntary contribution Maximum of 8%
T Sivasankaran
From India, Chennai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
Voluntary PF.doc