Why is my PF only 1800?

The employers monthly contribution is restricted to a maximum amount of Rs 1,800. Even if the employee's salary exceeds Rs 15,000, the employer is liable to contribute only Rs 1,800 (12% of Rs 15,000).

What is the maximum limit for PF deduction?

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.

Can I increase my PF amount?

To open a VPF account, an employee has to approach his HR/Finance team and advise them to raise a request for an additional contribution in the VPF through a registration form. The existing EPF account will serve as the additional VPF account. Currently, the interest is accrued at 8.5% per annum under this scheme.

How is PF amount calculated?

The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 % of 15000, which comes to Rs 1800/-. This amount is the employee contribution.

How calculate PF if salary is less than 15000?

If the basic pay is less than Rs 15000 then 8.33% of that full amount will go into EPS. For the PF deduction, the maximum limit of salary of the employee is Rs 15,000 per month. This means that even if the employee's salary is above Rs 15,000, the employer is liable to contribute only on Rs 15,000 that is Rs 1,800.

EPF (Employee Provident Fund) – Calculation, Rules 2022 | PF Calculation in Hindi | EPF

Can employer contribute more than 12% for 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.

Is employer contribution 13% in PF?

Contribution by an employer: The contribution made by the employer is 13% of the basic salary and PF applicable allowances of the employee. However this 13% is further subdivided into: 3.67% of contribution towards Employees' Provident Fund.

Why PF is deducted twice from salary?

If the salary is mentioned as CTC, the employer PF amount only will be given in the offer letter. Employee PF amount will not be shown and it will be deducted from the salary. so it is logical only. CTC means cost to the company which is given by the company employee deductions to be not given.

Is PF amount double?

How will PF's money be double? If a person doubles his contribution, then his PF fund will also be doubled. If a person contributes only 12 percent as per the rules, it will increase to 24 percent. Interest on this amount will also increase.

How can I increase my PF salary?

What is the basic salary limit for PF?

To be applicable for EPF, one needs a basic pay of less than ₹15,000 a month. To be applicable for EPF, one needs a basic pay of less than ₹15,000 a month.

Can PF be capped at 1800?

If you earn more than ₹15,000 per month in basic salary plus dearness allowance, employers can limit the PF deduction to 12% of ₹15,000 ( ₹1,800) under the proviso to Para 26A of the Employees Provident Fund Scheme, 1952.

Is PF applicable if salary is more than 15000?

If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.

What is the PF for 10000 salary?

For example, if your monthly basic and DA is ₹10,000, both you and your employer will contribute ₹1,000 each instead of ₹1,200 each to the EPF account. You would, therefore, get ₹400 more (both employer's and employee's contribution) as in-hand salary. The labour ministry has issued a statement clarifying this.

Can PF be less than 12 of Basic?

The employer, typically, deducts 12% of your basic salary and dearness allowance towards EPF contribution and contributes an equal amount. However, employers can limit the PF deduction to 12% of ₹15,000 even if the basic salary is higher.

How much PF is deducted every month?

Employee contribution to EPF: 12% of salary. Employer contribution to EPF: 3.67% of salary. Employer contribution to EPS: 8.33% of salary subject to a ceiling of Rs. 15,000 salary, i.e. Rs.

Why PF is 12% of basic salary?

Employees usually contribute 12% of their basic salary while the employer makes a contribution of 13.61% towards the EPF. EPF is an retirement investment plan opted by a number of employees as this has number of benefits.

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.

Is 12 percent PF mandatory?

Currently, the mandatory monthly contribution by the employee stands at 12 per cent of the monthly pay which includes monthly basic pay, dearness allowance and retaining allowance, if any. As an employee, one is allowed to enhance the contribution to up to 100 per cent of the basic pay.

Is it illegal for the company not to deduct PF if the salary is above 20000?

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.

How is PF calculated 2021?

The employer makes a contribution of 8.33% towards the EPS (Employees' Pension Scheme) account of the employee. Another 3.67% is added to the EPF account of the employee. The employer also makes 0.50% of contribution towards the EDLI (Employees' Deposit Linked Insurance) account of the employee.

What is the new PF rule?

Employees Provident Fund (EPF) contributions exceeding ₹ 2.50 lakh yearly will be taxed from today, i.e., April 1, 2022. That limit has been set for government employees at a higher end of ₹ 5 lakh. With the new rules, the centre aims to prevent high earning people from taking advantage of government welfare schemes.