contribution to provident fund

SARAVANAN.R (Querist) 09 March 2009 This query is : Resolved
Dear Sir,

I read in one of the papers downloaded from our website, that salary ceiling for provident fund contribution is 6500/- per month. Is it correct.

Then can you explain, if a person earns 10,000 or 15000 per month, contribution to provident Fund by employer will be limited to 12% of Rs 6500/- only?

Please clarify
Saravanan

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ysharma4u (Expert) 10 March 2009
Yes , as per the provision of PF and MP Act wage limit is 6500/- but there is no ceiling limit defined by the act , in other words PF deduction is applicable of Basic and DA and there is no ceiling limit for basic and DA.

Regards,