Dear All
Can any one tell me the PF Contribution Limit of an Employee per Month.One of my friends told me there is no limit regarding the contribution of Employee.Is it true please explain
Thanks
BINUMS
5 Replies
Azmathullah Khan
(Accounts Manager)
(1386 Points)
Replied 21 July 2008
Pf limit is Rs. 900/- i.e., Rs. 7500/- is the basic on which 12% will be UR PF amount amounting to Rs.900/-, If u deduct more then that, there is no problem, but the company share should be not more then Rs.900/-
BINU.M.S
(MCOM MBA ICWAI-Inter(Studying))
(197 Points)
Replied 21 July 2008
Thanks for the reply.What I understand from your reply is that the maximum amount which an employer can contribute towards PF is Rs.900/- only.On
the other hand an employee can contribute whatever amount he likes,there is
no limit for the employees contribution towards PF.So an employee can contribute even Rs.7000/pm from his side.Please share your ideas on this...
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 21 July 2008
There is No limit for employee
employer can contribute in excess of 12% but that excess will be taxable to employee
employer can max 24% of salary*
salary=basic+d.a(that part which forms part of retirement benefits like Leave encashment etc)+Commission (if a fixed % of turn over )
BINU.M.S
(MCOM MBA ICWAI-Inter(Studying))
(197 Points)
Replied 22 July 2008
Thanks for the reply.From your replies what I undertsand is PF limit for employer is Rs.900(based on 7500).I just want to know whether this PF limit
is newly added or not.Because my previous knowledge about PF was
maximum an employer can contribute is Rs.780(based on 6500).
Please explain ...
Thanks
BINUMS
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