There is statutory ceiling by PF Deot that compulsary Maximum ceiling for PF calculation will be Rs 6500. ie an employer is liable to deposit PF contribution maximum to 12 % of 6500 beyond that an employer will have his discretion to contribute
Example
If Basic salary is 5000, PF - 5000*12 compulsory . here an employer cant exempt an employee inspite of his will
But if an employee's Basic salary is 8000, then employer can limit his contribution to 12% of 6500, and if employee wants, he can take exemption for PF
Further if an employer wants to pay at actual basic then there is no limit
Shyamal
I have read once that , there is a maximum limit for the PF Deduction .
Is that corrct ?
it says the maximum limit for pf deduction is 12% of 6500 .
please make me clarified .
Advance Thank you[/QUOTE]
From India, Mumbai
14Example
If Basic salary is 5000, PF - 5000*12 compulsory . here an employer cant exempt an employee inspite of his will
But if an employee's Basic salary is 8000, then employer can limit his contribution to 12% of 6500, and if employee wants, he can take exemption for PF
Further if an employer wants to pay at actual basic then there is no limit
Shyamal
I have read once that , there is a maximum limit for the PF Deduction .
Is that corrct ?
it says the maximum limit for pf deduction is 12% of 6500 .
please make me clarified .
Advance Thank you[/QUOTE]
From India, Mumbai
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PF salab limit.pdf