New Delhi: According to Employees Provident Fund Organisation’s (EPFO) rules and regulations, an EPF member has to mandatorily contribute 12 per cent of the sum of his basic income and Dearness Allowance (DA) to his PF account on monthly basis. On top of that, the organisation in which he is employed also has to contribute 12 per cent of the sum of his basic salary and DA to his PF account. But can any employee contribute more than the stipulated to his PF account. Well! The answer is Voluntary Provident Fund (VPF). An individual is allowed to contribute more through VPF. The interest rate of both EPF and VPF are same. Plus, contributions to both the savings schemes qualify for tax deduction benefits of up to Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961.
EPF contribution on more than Rs 15,000 maximum wage
What if the employee doesn’t want to invest in VPF, but wants to increase his contribution in his EPF account itself? The EPFO has put a cap of Rs 15,000 maximum wage on which the 12 per cent PF contribution is calculated. According to the EPF rules, 12 per cent PF contribution cannot be calculated on any amount in excess of Rs 15,000.
Can the employee’s contribution to VPF exceed 12%?
Can the individual increase the percentage of contribution from 12 to 15 or 20 or even more? Let’s find out:
Well! According to PF rules and regulations, an individual can increase the percentage of contribution from 12 per cent to even 100 but the maximum wage on which the VPF contribution (of 12 or 20 or 100 or whatever) will be calculated cannot be in excess of Rs 15,000.
Can EPF Contribution be more than Rs 15,000?
In no way can the EPF member increase the maximum wage on which his PF contribution is calculated to more than Rs 15,000. What if somebody wants that his PF contribution should be calculated on higher wages in excess of Rs 15,000, then, according to EPF rules, he is required to secure permission of Assistant Provident Fund Commissioner (APFC) or Regional Provident Fund Commissioner (RPFC) to increase PF calculation on higher wages than Rs 15,000.
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According to EPF’s rules and regulations, an employee’s PF Contribution can be more than Rs 15,000 in a month, if has secured permission of APFC/RPFC. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
