Hi, Is there any restriction on PF deduction (i.e. Rs.780/- only) as per Provident Fund Act ? If Yes, please provide me the write-up for the same. Thanks....
From India, Mumbai
5From India, Mumbai
PF act do not restrict the contribution amount but employer is not legally bound to pay the PF contribution above 12% of 6500 Basic+DA (i.e. Rs. 780/-).
Explanation -
1. If both (employer and Employee) are ready to contribute more than 780 than they can.
2. If employee want to contribute his/her 100 % of basic but employer do want the same then employer can pay only 12% of his basic ceiling to 6500.(Ceiling Value: 6500 w.e.f. 1/6/2001) as employer is not legally bound to pay more than that.
From India, Kota
Explanation -
1. If both (employer and Employee) are ready to contribute more than 780 than they can.
2. If employee want to contribute his/her 100 % of basic but employer do want the same then employer can pay only 12% of his basic ceiling to 6500.(Ceiling Value: 6500 w.e.f. 1/6/2001) as employer is not legally bound to pay more than that.
From India, Kota
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