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PF on Higher Wages, VPF and Restricting PF to the Ceiling

By Kusum · Reviewed by Harish, Labour Consultant, Delhi on · Updated

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Independent guide by India Customer Care. We are not EPFO. Use only the official EPFO portals and the UMANG app for your account, and never share your password or OTP with anyone.

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  1. Sources

Statutory PF is due on wages up to ₹25,000. Contributing on actual wages above the ceiling is an arrangement allowed under the scheme; existing higher-wage arrangements should continue and not be cut just because the ceiling rose. VPF is the employee's own extra contribution; you deduct it but don't have to match it.

Higher-wage contribution

  • Both shares are calculated on actual PF wages.
  • EPS stays capped at 8.33% of ₹25,000 (₹2,083) for EPS members.
  • Keep the employee's and your written consent on file.

Voluntary PF

  • Employee asks in writing; you deduct the extra and report it in the employee share of the ECR.
  • No employer matching.

Restrict to ₹25,000

For new arrangements, contributions may be restricted to the ceiling. Don't reduce existing higher-wage contributions without checking the scheme provisions.

  1. Check existing arrangements
  2. Record consents
  3. Set payroll rules per employee

Sources