BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Maximum deduction for EPF and LIP contributions is limited to ____
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RM4, 000
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RM 5, 000
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RM6, 000
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RM7, 000
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Explanation:
Detailed explanation-1: -The total contribution i.e., voluntary + mandatory can be up to Rs. 15, 000 per month. The member can also contribute on higher wages i.e., greater than Rs. 15, 000 but only up to a maximum limit of 100% of the PF wages, provided they get permission from the APFC/RPFC as per the provisions of para-26(6) of the scheme.
Detailed explanation-2: -However, as per the norms, your employer can only contribute a maximum of 8.33% of the threshold amount of Rs. 15, 000 towards your EPS. This means that your employer can only contribute a maximum of Rs. 1, 249.50.
There is 1 question to complete.