I am working in a company and get a salary of Rs. 50,000 per month.
However my take home salary is low due to various deductions.
PF is deducted at a higher rate and I need higher take home salary due to some personal commitments.
What is the minimum amount of PF one has to pay?
Can I lower my PF amount and inform HR department?
You have not mentioned your basic salary as PF is deducted on basic salary. PF is to be deducted at 12% of basic salary plus dearness allowance.
Believing that your basic salary is more than Rs. 15,000. You will have to pay a minimum PF of Rs. 1,800 which is 12% of Rs. 15,000.
As per provision of Employee Provident Fund Act, 12% PF has to be deducted from basic salary. However you have the option to limit this deduction upto Rs. 15,000 as your basic salary. So you can reduce your PF deduction upto Rs. 1800.
You can ask your HR department to reduce your PF deduction. But mind that even employer share will be reduced by same amount.
If your CTC does includes equal employer contribution and not in amount, you over all earnings may go down.
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
