What is the maximum limit for PF?
The EPF contribution is either 12% of Rs. 15,000 or 12% of (Basic Salary + Dearness Allowance, if applicable). The upper limit of EPF contribution every month is 12% of Rs. 15,000.
What if PF is more than 15000?
15,000. If an employee’s salary is Rs. 15,000 or more, the employer’s 12% contribution is divided into two parts. Amount exceeding Rs 1,250 per month is transferred to the EPF account.
Can employee contribute more than 12% to PF?
The EPFO allows an EPF or PF account holder to opt for the VPF and invest beyond 12 per cent of its basic salary in one’s provident fund account. However, for this VPF contribution made by the employee, the employer will not contribute any additional amount.
What is current PF limit for salary?
The EPF scheme is necessary for the employed people with a salary of less than Rs 15,000. In this, the government gives 1.6 per cent of your basic salary as a contribution to your PF account. By increasing the salary limit from Rs 15,000 to Rs 21 thousand, 75 lakh employees can get the benefit.
Is PF mandatory for salary above 21000?
Under the current rules, any company with more than 20 employees must register with the EPFO and the EPF scheme is compulsory for all employees earning less than ₹15,000. The increase in the limit to ₹21,000 will bring more workers under the retirement scheme.
How much PF will I get on 40000 salary?
When Basic+DA is Rs 40,000: Deriving from the EPFO FAQ, the employee and employer’s contribution will be Rs 4000 (10%) each instead of Rs 4800 (12%) for next three months. The employee will get the balance of Rs 800 in monthly salary in June, July and August.
Is it mandatory to deduct PF from salary more than 22000?
If your starting salary is above 25000 Rs then it is not mandatory to deduct PF. But if you are already a member of EPF and your monthly salary increases to above 25000 Rs then you have to continue your PF contribution, but PF will be calculated on a limit 0f 15000 salary only.
What is the PF for 8000 salary?
If an employee is drawing Basic Rs.8,000 and DA Rs. 2,000 per month then 20 days salary for September would be 8000+2000=10000*20/30=6,667 (Earned Basic & DA). Thus the PF contribution will be on Rs. 6667*12/100=Rs.