1. #1
    Unregistered

    What is the exact percentage of provident fund deduction? Can I go for more deduction of P.F. to increase my saving?

    I am working in a charitable trust. My basic salary is 8000 INR. What is the exact amount that will be deducted through provident fund? Can I go for more saving by more P.F. deduction?

  2. #2
    Labournet Law Consultancy Array
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    Re: What is the exact percentage of provident fund deduction? Can I go for more deduction of P.F. to increase my saving?

    The maximum salary on which the pf has to be paid is 6500. Above 6500 it is exempted. But if you wish to contribute Pf above 6500 you can very well do it. There is no limit you can contribute on full salary earned. But you cannot compel your employer also to contribute for more than 6500 salary.

    According to your post you can contribute pf on Rs8000 per month.

    For understanding further contribution is as follows.

    Your contribution = 8000 ( monthly Salary ) X 12 % ( Statutory employee Pf contribution percentage ) = 960.

    Your companies contribution = 6500 ( maximum contribution) X 13.61 ( Statutory employer PF contribution percentage ) = 885.
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