I have a question that some companies mandatorily deduct PF as 12% of basic and some companies Rs 1800 per month. Why it is so ? Can we request to deduct Rs 1800 per month ?

like
Posting as :
works at
You are currently posting as works at

Some companies deduct only ₹1,800 towards Employee Provident Fund (EPF) instead of the full 12% of basic salary due to the following reasons:

💼 1. Statutory Wage Ceiling
• EPF Act sets a statutory wage ceiling (currently ₹15,000/month).
• 12% of ₹15,000 = ₹1,800 — many employers cap the deduction here to reduce costs.
• They are legally allowed to do this, unless they voluntarily opt for full contribution.

📉 2. Cost Control
• Full 12% on higher basic salary increases employer’s contribution liability.
• To keep salary structure tax-efficient and cost-effective, companies cap at ₹1,800.

📃 3. Allowed Under EPFO Rules
• EPFO allows “restricted contribution” (on ₹15,000) unless the employee opts for “voluntary higher contribution” and employer agrees.

🔐 4. Private Companies’ Policy
• Many IT, BFSI, and startup companies adopt this policy to offer higher take-home pay and reduce compliance complexity.



✅ Is it Legal?

Yes — as long as basic ≤ ₹15,000 or if contribution is voluntarily restricted to wage ceiling.



If your basic salary > ₹15,000 and you want full 12% contribution, you can:
• Request voluntary contribution (if employer agrees)
• Or choose NPS/PPF for long-term savings in addition

like

If you get any EPF problem, it's difficult to solve it.

like

But not all company's

like

Related Posts

What else can I do with a masters degree in ESL? I taught at 3 different schools in 3 years. The first two I resigned because they weren’t a good fit and this year I was non renewed despite my performance improving. I honestly don’t think teaching is for me

like

We submitted DS160 for H4 Dropbox few months ago, since then unable to find appointments. Meanwhile, primary applicant’s I797 new extension approved. How do we use this I797 for H4 Dropbox? During doc submission can we just give new I797?

like

Any agile coaches here ?

like

How do you deal with anxiety before a big presentation? I really struggle with this and want to get better.

like

Just wanted to shout out you guys and this app for helping to guide people whether that's salaries, tips, referrals, etc. Helped give me direction on my next step. Looking forward to starting in Saas after the new year. You guys rock

Also, if you have any books, podcasts, youtube, etc. I could learn from in the few weeks that would be great.

like

Hoping to get my PHR in the next year or so. Outside of employer reimbursement, are there other opportunities for this to get funded? I know SHRM Foundation offers scholarships for the CP, but I am looking for PHR specific help. Thank you! :)

See the new Acura RDX spot?

Who directed it? What production house?

like

Why don't firms invest in R&D for Artificial General Intelligence? Seems like this would be a powerful tool to have as a consultancy

funny

Tips to rally and not pass out? Because I definitely had a good several minutes of shut eye at the bar and passed out in my Uber home.

like

Can’t decide between enhanced PPO and Essential PPO. Mid 20s don’t really frequent the doctor but curious what everyone else is going with. Opt out for the High deductible plan to get the firms 650/year contribution??

How do they verify your health status when getting life insurance online?

Post Photo
likefunny

Here we go again.

Post Photo
likefunny

Tendies? 😊 🤚💎🤚

like

Hey people,
Are there any visa restrictions on mining for Bitcoin or ETH in USD.

like

I’m originally from Brazil and most of my investments are allocated there.

Brazilian fixed income products are paying 13.25% returns and I’m wondering if it’s a good idea to secure this return in Brazil or if now it’s a good time to build a portfolio with US equities?

(90% of my money is on my Brazilian portfolio)

like

Anyone having 2-3yrs of experience recently joined Accenture as an application development senior analyst?

like

What is L2 interview in coforge? Will it be more of a technical round or some Senior Manager regarding other aspects?

like

EY and KPMG denied my applications 😥 please take me I want out of here!

like

I just got offered a new role via email. When should I hand in my resignation - now as I have the email outlining the offer or when I receive the contact?

like

Does EYP do case interviews for TSE consultant level? If so, whats the type of cases do you typically see?

like

Additional Posts in Offer Negotiations

Fishes, pls help with likes to enable DM. TIA.

like

Hi all. I am SAP PLM Associate Consultant.

My current CTC is 4.7 LPA.
Experience 1.8 yrs

How much should I ask for job switch?
Kindly guide.

like

Hi Folks ,
I got offer from Thoughtworks and Allstate with almost same compensation .Which one is good in terms of WLB , learning and Job Security ?

like

I have offers from Capgemeni, LTI and Gartner, Yoe - 7. Which one should I choose ?

EY Morgan Stanley

Post Photo

Is credit Suisse good company in terms of job security?
Yoe: 3
Tech stack: java angular

like

EY Hello fishes,

Has anyone joined Wipro recently with 4 years of experience. What's the max CTC they have offered you.

Infosys McKinsey & Company Bain & Company PwC JPMorgan Chase Cognizant Tata Consultancy Deloitte

like

Could anyone please tell me what will be the in-hand salary in IBM for this package

Post Photo
like

What should be ideal salary for the AWS DevOps Engineer having 3.5 YOE having tech stack AWS, Terraform, Gitlab/GitHub , Jenkins/gitlab-runner, Prometheus/Grafana. Seeing the demand as per market.
Pls suggest for service based as well as product based

like

Wipro sends welcome kit via frens and petals?? Wipro HCL Technologies Tata Consultancy Infosys Accenture IBM

like

What is the approximate package offered in a product based company to "Software Engineering Manager" with 15 years of total experience ?

KPMG or EY GDS or ZS Associates?
Almost same offer, same designation. Which one I should go with?
Engineering Manager Role, 12YOE.

like

Hi.. I am having experience around 2 years in Tata Consultancy The package is not close to 4lpa Is there any chance that i can ask for a revised CTC ( or digital package) if yes, to whom should I approach and what is the process Thank you in advance!

Exp 2yr
CTC around 4lpa
Stack Java spring boot, angular js,MySQL.

like

Hello fishes,


Got an offer from Mphasis. Should i accept it right away or can i wait for a counter offer from another company?(it is under discussion currently)
Or
Accept it now and discuss negotiations later?

Its written in Mphasis offer letter that i can endorse the acceptance before the date of joining.

Please suggest.

like

5th September is my last working day at Infosys. Yoe=4+ yrs
Tech= aws devops
I hold an offer of 18LPA from KPMG with joining date of 7th September. (Wfh)
I applied at Workday on 15th May and went through 7 technical rounds of interview and received a verbal offer letter of 21LPA (hybrid)
Now apparently their technical panel "forgot" about the interview and wants to have a discussion again as 8th technical interview. HR says their joining date will be 19th September.

Should i join KPMG?

like

Hi Fishies,

Which to join among these ?

Synechron or
Coforge.

Both are offering same CTC.

Any idea about job security in these organisation.

Synechron Inc. Coforge Coforge ltd

@

like

I have 10+ Year experience. My expertise are Java, Springboot, Micro-service, docker and kubernates. What salary I should expect in EXFO Company as Principal Software.

like

My job application status says shortlisted in Mindtree Portal after 3 round of technical interviews. The recruiter told me he will send an invite for the HR round (10-15 days back) But i am yet to receive any information from them.

Can someone from #Mindtree help me understand what process they follow for recruitment?

Hi Everyone,
1.I had two offers one is with Cognizant with 11.55LPA fixed + 45,000 variable pay. I was offered L1 position(designation - Associate).
- Only day shifts(no rotational weekoff's) + I get afternoon shift allowance around 5k per month.
-As per the Manager mention it's mostly WFH we need to come to office at least one month in every 6months(duration).

2.HCL offered L2 position with 10LPA(Around 1.5 Variable pay is included)
-No shift allowance
-Rotational shifts including night

like

Got an offer of 36lpa (12% variable included) +2l JB with a 1.5 year statute of staying. Company - Amex. Offered designation - b35 product manager
Cctc :29.5 fixed. Just need to know if I'm being low-balled. Yoe : 3 before mba, 5 post.

likefunny

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal