WebYou can contribute a maximum of 100% of basic salary and dearness allowance which is more than the conventional PF (Provident Fund) contribution of 12% of one's basic salary. VPF Interest rate is equal to that of the PF, and currently is 8.5%. Withdrawals after the 5-year lock-in period are completely tax-free. WebNo matter the employee's income, the contribution to PF is 12% of the Basic Pay + DA. Employee Contribution to EPF=12/100* (Basic+DA) Employer's Contribution The employer's contribution to PF is as follows: Employer's Contribution to EPF=3.67/100*Basic+DA 8.33% goes to the Employee Pension Scheme.
KWSP - Contributing More Than The Statutory Rate
WebNo, the employer cannot contribute more than 12% to PF. Can I increase my PF contribution? The employee is allowed to increase his/her contribution to 100 percent of (basic + dearness allowance) of salary. Can we reduce PF contribution? No, PF amount once fixed cannot be reduced. Can we withdraw employer share in PF? WebApr 24, 2024 · If any employee doubles his monthly contribution making it 24% of basic from the default setting of 12%, then the amount in his PF fund will itself double. A timely increase in the PF contribution can help you have double the PF amount at the time of retirement. This is surely, a great benefit, but there is more to this story than just that. myrtle creek pd
Voluntary Provident Fund Rules and Guidelines
WebApr 26, 2024 · VPF is much better than tax saving small saving schemes like PPF, Post Office savings, etc as PF interest rate will always remain higher than other government … WebMay 25, 2024 · Your employer must contribute an amount equal to 10% or 12% of your basic salary towards EPF. For female employees, the government contribution doesn’t … WebJan 7, 2024 · Employee and Employer Contributions to the Employee Provident Fund (EPF) For EPF, both the employee and the employer contribute an equal amount of 12% of … the soup original host