Dear All,
I have some confusion regarding PF calculation. Please suggest the best method. Am I right or wrong? Most of our employees' basic salary is above 10000/-, so we have set the limit for PF deduction at 6500/- for both. Accordingly, our software calculates 780/- as the PF amount for both parts (employee and employer).
The problem arises when an employee has a basic salary of 15000/- and only works for 20 days in a month. What should be the PF amount? Should it be 780/- or 780/30*20 = 520/- as per the PF Act?
Regards,
Mukesh Singh
From India, New Delhi
9I have some confusion regarding PF calculation. Please suggest the best method. Am I right or wrong? Most of our employees' basic salary is above 10000/-, so we have set the limit for PF deduction at 6500/- for both. Accordingly, our software calculates 780/- as the PF amount for both parts (employee and employer).
The problem arises when an employee has a basic salary of 15000/- and only works for 20 days in a month. What should be the PF amount? Should it be 780/- or 780/30*20 = 520/- as per the PF Act?
Regards,
Mukesh Singh
From India, New Delhi
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