08 November 2012
My Query: 1.If my Salary(Basic+DA+Food Allow.) is Rs.6500/- & I Contribute 12% to PF Account.. On a Future Date if my Salary goes to Rs.20000/- Can I contribute only 12% on Rs.6500/- or should I Contribute on Hiked Salary Rs.20000/-? 2.What about Employer Contribution? 3.Till What extent shall the Employer Contribute: Only till Rs.6500/- or no such Limit??
For PF only BASIC & DA to be considered, till both is below Rs. 6501, PF to be contributed.
If in future when it exceeds Rs. 6500 then there is an option for not to contribute PF both by employer & employee above Rs. 6500 or to cinribute on whole amount of Basic & DA.
Option once exercised can not be roll back.
Pl revert for further query.
Thanks//Vaibhav Click thank button to convey your appreciation.
Generally all co. contributes on amount above Rs.6500 also and doesnot restrict PF contribution to Rs.6500/-, benefit is that you get higher cash flow.
You can ask your employer/HR if you want to know on which amount they will be deducting TDS.
Thanks//Vaibhav Click thank button to convey your appreciation.