Can employees contribution be more than 12% for EPF

Ask the Community Statutory Compliance
1

Can employees contribute more than 12% of PF wage (wage limit is 15K) and what is the max EPF contribution allowed by employees without joining VPF. Employer has not commitment more than 12% but what about employee if insists to do so to save income tax?

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2

Hi,

Max is 12% without joining VPF. If an employee insist to deduct more EPF then please inform them 12% is maximum as per EPF act. If they need to save income tax then they can opt for VPF [No other option] upto their basic-EPF of 12%.

I hope I have answered your query.

Regards
Arpana

3

Employee can not contribute more than 12% in EPF but he can opt for VPF at same time.
VPF is allowed to a maximum of 100% of the basic salary of an employee.
For example employee drawing basic salary of Rs. 20,000/- per month may contribute Rs. 18,200 as VPF and Rs. 1,800/- as EPF. Total Rs. 20,000/-

The employer statutory liability shall be Rs. 1,800/- per month only and shall not change in case of VPF.