Right Things you Need PF Consultant in Ahmedabad
- prafullpatel88
- Mar 11
- 2 min read
Investing more than the required 12% of your base pay in the Employees' Provident Fund (EPF) will strengthen your financial stronghold. The employer typically contributes 13.61% to the EPF, while employees typically contribute 12% of their base income. Pro Legal HR ESI PF Consultant Services in Ahmedabad. The EPF retirement investment plan is a popular choice among employees due to its many benefits. Better rewards and a stronger financial foundation could result from contributing more than the statutory percentage. Let's examine the advantages of moving away from the 12% tax bracket and toward a more stable financial future.
Important Details Regarding the EPF Contribution
The following are the most important things you need to think about:
The Employee's Provident Fund receives 3.67% of the employer's total payment, while the Employee's Pension Plan receives 8.33%.
The EPF member passbook is updated with each contribution.
All of their contributions are given to the EPF.
The employer is required to make an additional 0.5% contribution to EDLI on top of the previously stated obligations.
Additionally, a portion of the 1.1% and 0.01% administration fees for EPF and EDLI, respectively, must be covered by the employer. This means that 13.61% of the employee's wage must be contributed to the scheme by the company.
Employee's EPF Contribution Share
The employee's contribution rate is typically set at 12%. However, the rate is fixed at 10% for the following organizations:
Businesses or groups with fewer than 19 employees
Companies that lose significantly more money annually than they are worth
Companies that pay workers a maximum of Rs. 6,500
Employer's EPF Contribution Share
Employers are allowed to contribute more if they so choose, although they are required to contribute at least 12% of the monthly salary. This suggests that both the employer and the employee must contribute 12% of the employee's monthly pay to the PF account. Contributors can keep their freedom after retirement thanks to this long-term investing fund. Pro Legal HR ESI PF Consultant Services in Ahmedabad.
How is it possible for an employee to make over 12% of their EPF contribution?
Using a VPF account is a simple method for a salaried person to contribute more than 12% to their provident fund.
Salaried workers can choose to contribute to the Voluntary Provident Fund (VPF) on top of regular EPF contributions. Its status as a government-backed savings plan with low risk and high returns is one of its key advantages. It is the money that an employee willingly contributes to their provident fund account.
The amount donated is more than the 12% that an employee must pay into his Employee Provident Fund. The maximum contribution is 100% of the Basic Salary plus Dearness Allowance. The EPF and the interest rate are identical.
Contributions to employees' VPF accounts are not mandatory for employers. An extension of an EPF is a VPF. Only salaried workers who receive their monthly income through a designated salary account are eligible for the VPF alternative.

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