Dear All,
All are requested to please clear the doubt on the attached EPF interpretation. Please see the attached EPF Interpretation and let us know which one is the right interpretation - A or B?
Thanks & Regards,
Reddy
From India, Mumbai
Acknowledge(0)
Amend(0)
All are requested to please clear the doubt on the attached EPF interpretation. Please see the attached EPF Interpretation and let us know which one is the right interpretation - A or B?
Thanks & Regards,
Reddy
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Reddy,
For a simple question, you attached a file! However, I shall provide the answer. Pension contribution is calculated based on the ceiling salary of R. 6500 on a pro-rata basis. Therefore, the salary for 20 days would be 6500 x 20/31 = 4194 and the pension contribution would amount to 4194 x 8.33% = 349.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
530For a simple question, you attached a file! However, I shall provide the answer. Pension contribution is calculated based on the ceiling salary of R. 6500 on a pro-rata basis. Therefore, the salary for 20 days would be 6500 x 20/31 = 4194 and the pension contribution would amount to 4194 x 8.33% = 349.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Abbas,
Thank you for your clarification. In the attachment, the earned basic for 20 days is Rs. 9678/-. In this case, what should be the considerable pension salary: Rs. 6500/- or Rs. 4194/-?
Thanks & Regards,
Basivi Reddy
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for your clarification. In the attachment, the earned basic for 20 days is Rs. 9678/-. In this case, what should be the considerable pension salary: Rs. 6500/- or Rs. 4194/-?
Thanks & Regards,
Basivi Reddy
From India, Mumbai
Acknowledge(0)Amend(0)
From my above posting it is clear that ceiling salary for one month is Rs. 6500 and for 20 days it is Rs. 4194. Accordingly the contributions will be deducted / credited. Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
How will this be implemented? If the ceiling salary for pension is Rs. 6500, it means that for 30 or 31 days, it will be considered as 6500. Accordingly, for fewer days, the calculation will be done on a pro-rata basis. Therefore, Case B is correct.
Abbas. P. S.
From India, Bangalore
Acknowledge(0)Amend(0)
Abbas. P. S.
From India, Bangalore
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
EPF - Pension contribution is zero WHY.jpg
EPF Pension.xls