Hi all,
My name is Srikanth, and I work as a Jr. HR Executive in a security company in Hyderabad. I'm really confused about the calculations on the PF slip. Many of our colleagues from other departments frequently ask me about these calculations, but I'm unable to explain them. Can anyone please help me out with all these calculations?
Thank you.
From India, Hyderabad
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1My name is Srikanth, and I work as a Jr. HR Executive in a security company in Hyderabad. I'm really confused about the calculations on the PF slip. Many of our colleagues from other departments frequently ask me about these calculations, but I'm unable to explain them. Can anyone please help me out with all these calculations?
Thank you.
From India, Hyderabad
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Hi Srikanth,
In which company are you working? What problem are you facing with PF calculation? I am also from Hyderabad. I can help you. Can you please send me your email id? I will send you the calculation details.
Thank you.
Warm regards,
Jay
From India, Hyderabad
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In which company are you working? What problem are you facing with PF calculation? I am also from Hyderabad. I can help you. Can you please send me your email id? I will send you the calculation details.
Thank you.
Warm regards,
Jay
From India, Hyderabad
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Hi Jay,
I am working at Group 4 Security Services (G4S). Concerning calculations, I am not familiar with all the columns in the PF slip such as EMP, employer contributions, opening and closing balance, ceiling limit for PF, etc. Please let me know if you have this information.
Thanks and Regards,
Srikanth
From India, Hyderabad
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I am working at Group 4 Security Services (G4S). Concerning calculations, I am not familiar with all the columns in the PF slip such as EMP, employer contributions, opening and closing balance, ceiling limit for PF, etc. Please let me know if you have this information.
Thanks and Regards,
Srikanth
From India, Hyderabad
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Op. Bal. means the last year's PF amount in the PF department. Employee amount is 12% and Employer amount is 3.67% (balance of 8.33% is going to the pension account).
"Clos. Bal." means the last year's PF amount plus the current year's PF amount equals the closing balance, which is also employee 12% and employer 3.67% only (above 8.33%). If the employee asks you how much PF amount is for them, you can tell them it's only 24% (12% + 3.67% + 8.33%).
Example:
- 12% amount is Rs. 100 (Employee Contribution)
- 3.67% amount is Rs. 31 (Employer Contribution)
- 8.33% amount is Rs. 69 (Employer Contribution) (Pension amount)
The total amount is Rs. 200/- that the person will receive after PF withdrawals before completing 10 years of service (if incomplete service).
Regards,
JAY
From India, Hyderabad
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"Clos. Bal." means the last year's PF amount plus the current year's PF amount equals the closing balance, which is also employee 12% and employer 3.67% only (above 8.33%). If the employee asks you how much PF amount is for them, you can tell them it's only 24% (12% + 3.67% + 8.33%).
Example:
- 12% amount is Rs. 100 (Employee Contribution)
- 3.67% amount is Rs. 31 (Employer Contribution)
- 8.33% amount is Rs. 69 (Employer Contribution) (Pension amount)
The total amount is Rs. 200/- that the person will receive after PF withdrawals before completing 10 years of service (if incomplete service).
Regards,
JAY
From India, Hyderabad
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Hey Srikanth and Jay,
In short, you have already seen your bank passbook, is it not? PF A/c. statement is also nothing more than that. Except that, there are compulsory deposits from you as well as from your company as per the PF Act.
Imagine that your salary is Rs. 5000/- p.m. On that, you have to put 12% in your PF A/c and a matching 12% from your company. These deposits earn interest, which is added periodically, and the monthly closing balance is indicated. When you are eligible and want to take it, you can avail of a loan (refundable monthly-EMI, which is added back to your account) and withdraw (non-refundable) which is deducted. For every such transaction, the closing balance is indicated. What is the confusion in this? To be precise, first of all, understand your bank passbook and then take up the PF A/c. statement next.
Kumar.s.
From India, Bangalore
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In short, you have already seen your bank passbook, is it not? PF A/c. statement is also nothing more than that. Except that, there are compulsory deposits from you as well as from your company as per the PF Act.
Imagine that your salary is Rs. 5000/- p.m. On that, you have to put 12% in your PF A/c and a matching 12% from your company. These deposits earn interest, which is added periodically, and the monthly closing balance is indicated. When you are eligible and want to take it, you can avail of a loan (refundable monthly-EMI, which is added back to your account) and withdraw (non-refundable) which is deducted. For every such transaction, the closing balance is indicated. What is the confusion in this? To be precise, first of all, understand your bank passbook and then take up the PF A/c. statement next.
Kumar.s.
From India, Bangalore
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Dear Sir,
You need not calculate the amount on the P.F. slip. You have to submit annual Returns Form-6A and 3A every year. The P.F. authorities will issue the P.F. slip from their end. In the P.F. slip, it will be available as Previous Balance + Interest accrued = total amount of Balance + Current year amount - P.F. advances taken = Closing Balance amount. (Please see the slip.)
D. Gurumurthy HR/IR Consultant
From India, Hyderabad
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You need not calculate the amount on the P.F. slip. You have to submit annual Returns Form-6A and 3A every year. The P.F. authorities will issue the P.F. slip from their end. In the P.F. slip, it will be available as Previous Balance + Interest accrued = total amount of Balance + Current year amount - P.F. advances taken = Closing Balance amount. (Please see the slip.)
D. Gurumurthy HR/IR Consultant
From India, Hyderabad
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hai my self s.sathish working as a hr executive from daejung moparts pvt ltd. now our company going to be a salary nagosation. i want agreement format from employer and employee
From India, Madras
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From India, Madras
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Dear Srikant,
Please note that the PF slips only show the EPF amount, i.e., 12% employee's share + 3.67% (different amount) employer's share, and the remaining 8.33%, i.e., pension fund (employer's share), is not shown in the slip.
Hope this information helps you.
Regards,
From India, Solan
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Please note that the PF slips only show the EPF amount, i.e., 12% employee's share + 3.67% (different amount) employer's share, and the remaining 8.33%, i.e., pension fund (employer's share), is not shown in the slip.
Hope this information helps you.
Regards,
From India, Solan
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Also, note that the 12% + 3.67% is the amount on which interest is calculated, and the rest, i.e., pension fund not shown in the slip, remains the same as deposited and can be withdrawn along with EPF after resignation by submitting Form 19 and 10C.
Regards,
From India, Solan
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Regards,
From India, Solan
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Hi Srikanth,
I think your question is how to understand a PF slip received from PFO to explain to your employees. First of all, please know that the PFO maintains a ledger for every PF account, similar to a bank account. Credits and debits are posted every month in this ledger. While credits that occur before the 5th of the month are eligible for interest calculation in that month, a debit even on the last day of the month is not eligible for interest in that month. The PF slip captures the gist of the ledger (OB, total credits, total debits, interest calculated, and CB).
I am attaching a model PF ledger, which is self-explanatory. The gist of transactions for the PF slip is shown at the end of the attachment.
The essence for you to know is that the "interest-bearing balance" (IBB) is calculated every month, the total is struck at the end of the 12th month, and the average IBB is calculated by dividing the total by 12. One month's interest at the prevailing rate (9%) is calculated on this average IBB. If you have details of credits and debits, you can create a ledger and verify whether the interest shown has been calculated correctly.
Hope this will suffice.
Regards,
K. Raajaram
From India, Bangalore
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I think your question is how to understand a PF slip received from PFO to explain to your employees. First of all, please know that the PFO maintains a ledger for every PF account, similar to a bank account. Credits and debits are posted every month in this ledger. While credits that occur before the 5th of the month are eligible for interest calculation in that month, a debit even on the last day of the month is not eligible for interest in that month. The PF slip captures the gist of the ledger (OB, total credits, total debits, interest calculated, and CB).
I am attaching a model PF ledger, which is self-explanatory. The gist of transactions for the PF slip is shown at the end of the attachment.
The essence for you to know is that the "interest-bearing balance" (IBB) is calculated every month, the total is struck at the end of the 12th month, and the average IBB is calculated by dividing the total by 12. One month's interest at the prevailing rate (9%) is calculated on this average IBB. If you have details of credits and debits, you can create a ledger and verify whether the interest shown has been calculated correctly.
Hope this will suffice.
Regards,
K. Raajaram
From India, Bangalore
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(Fact Checked)-The user reply contains accurate information regarding PF ledger maintenance, interest calculation, and the components of a PF slip. Well done! (1 Acknowledge point)
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