PROVIDENT FUND

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N.BALA RANGANATH (Querist)
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09 January 2009 please clarify my provident fund (PF) doubts.

1) what is the maximum and minimum contribution that has to be done by employer?
2) if offer letter shows 25000 as basic, can the employer say 6500 will be consdiered as basic for PF contribution by employer? I mean here offer letter shows one basic and employer is considering small amount for his PF contribution.

Thanks & Regards

Ranganath

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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10 January 2009 Provident Fund:(Employer & Employee)

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,)

Also, the employer is justified in paying PF on Rs. 6500 only.