Can employee contribute more to EPF?

Can employee contribute more to EPF?

As per the Employees’ Provident Fund Organisation (EPFO) norms, an employee is bound to contribute 12 per cent of its basic salary into one’s PF or EPF account. However, if an employee wants, he or she can add more into its EPF or PF account by opting Voluntary Provident Fund (VPF).

What is the percentage of contribution by the employer towards EPF contribution?

12%

Is there any limit for PF contribution?

As there is no contribution by the employer (i.e., the government), employees of the government sector can contribute a maximum of Rs 5 lakh into their PF accounts in a financial year to earn tax-exempt interest.

What is the salary limit for EPF?

Rs 15,000 a month

What is CTC breakup?

CTC or Cost to Company is the total amount that a company spends (directly or indirectly) on an employee. CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc. and annual components such as gratuity, annual variable pay, annual bonus, etc.

How do you calculate CTC break up?

1. CTC = Gross Salary + Gratuity + Employer Contributions (PF /ESIC) What is Gross Salary?
2. Gross Salary = Basic Salary + HRA + Bonus + Other Allowances.
3. Net Salary = Gross Salary – Income Tax – PF – ESIC – Other Deductions.
4. Basic Salary.
5. Conveyance Allowance.
6. Statutory Bonus.
7. Books and Periodicals.
8. Provident Fund (PF)

How do I accept a CTC break up?

Tips to Write a Salary Acceptance Letter

1. Do not cross the respect barrier and maintain a formal and professional tone.
2. Stick to being concise.
3. Write the date when you will be joining in.
4. Thank the other party.

How do you read a CTC break up?

Understanding your salary breakup:

1. Basic salary: This is the main component of your salary structure.
2. Gross salary: Gross salary is the sum of the basic salary and allowances.
3. Net salary: This is your take-home salary.
4. Allowances:
5. Provident fund:
6. Gratuity:
7. Life insurance and health insurance:
8. Income Tax:

What is the of basic salary of gross salary?

Basic Salary: It is the employee’s basic income and is around 40%-50% of the total salary. The employer pays the employee for his skill, experience, and qualifications. The basic salary is a fixed component of the CTC (Cost To Company) package.