Can I stop EPF contribution?
If your basic monthly salary is over Rs. 15,000, you can opt out of your EPF contributions if you want to (although it isn’t recommended that you do this). This option is only available to those who have never made any EPF contributions (those who are working their first job), and have no PF account number.
Can we change EPF contribution?
While the employer contribution is restricted at 12\% maximum, an employee can increase his or her contribution through VPF. The interest rate on EPF is declared after the completion of the financial year.
What is new EPF rules?
The rule requires all PF accounts to be split into separate accounts – one with the taxable contribution and interest earned on that component, and another with the non-taxable contribution that shall include the closing balance of the PF account as on March 31, 2021 and all fresh non-taxable contributions and interest …
How can I make my EPF contributions voluntary?
To open a VPF account, an employee has to approach his HR/Finance team and advise them to raise a request for an additional contribution in the VPF through a registration form. The existing EPF account will serve as the additional VPF account. Currently, the interest is accrued at 8.5\% per annum under this scheme.
How much is voluntary contribution in EPF?
What is VPF? Voluntary Provident Fund (VPF) is the contributions made by the employees that are over and above the minimum contribution set by the Employees’ Provident Fund Organisation (EPFO). However, the employer will not contribute more than 12\% of the basic salary, regardless of how much the employee contributes.
What is the EPF employer contribution?
When you contribute 11\% of your monthly salary to the EPF, your employer will contribute another 12\% or 13\% of your salary (the statutory contribution rate is subject to changes by the government) to your EPF savings. However, either you or your employer or both may contribute at a rate exceeding the statutory rates.
What is the EPF contribution at 12 per cent?
However, where employer’s share of EPF contribution is part of the CTC at 12 per cent rate, in such a scenario, an employee can request his/her employer to keep the contribution at 12 per cent for May, June, July 2020 instead of paying out the differential 2 per cent amount as salary to the employee.
Is your EPF contribution not part of the CTC?
Here is how. If EPF contribution by the employer is not part of the CTC, then employee has two options. The government has reduced both employer’s and employee’s contribution to the Employees’ Provident Fund (EPF) account from 12 per cent of employee’s pay to 10 per cent for the next three months.
Can an employer contribute more than 10\% to the EPFO?
In the Frequently Asked Questions issued by the EPFO on 20 May 2020, the EPFO has clarified that the employer, employee or both can contribute at the higher rate also. Thus, there is an option possible where the employer continues to contribute at 12 per cent but the employee contributes at 10 per cent.
Will my take-home pay increase if my employer reduces my EPF contribution?
Therefore, if you choose to continue your contribution to the EPF account at the rate of 12 per cent, then your take-home pay will only increase by the differential amount on account of reduced employer’s contribution, i.e., 2 per cent (12 minus10 per cent).