Hello Friends,
I would really appreciate if you help me to resolve my queries.
I was working with an IT organization for exact 2 years and I have resigned in May 2012. I opted for PF option and 12% of my basic salary and same amount as employer's contribution was deducted as PF contributions.
For April' 2010 to April 2011,
PF Deduction = 1600.00 (Employee's contribution)
For April' 2011 to April 2012,
PF Deduction = 2076.00 (Employee's contribution)
While reading through some articles on the net, I came across that Employer's contribution is bifurcated into sub parts.
E.g. For April' 2010 to April 2011,
My Contribution P/M = 12% of Basic 1600
Company's Contribution P/M = 12% of Basic = 1600
Employer’s contribution to EPS = 8.33% of Basic = 1110.64
This 1110.64 is higher than the max limit of Rs 541/month and hence
Employer’s contribution to EPS = 541
Therefore,
My Contribution P/M = 12% of Basic = 1600
Employer contribution to PF = 1600-541 = 1058.96
So Total PF contribution to PF account per month = 2658.92 (i.e. 1600 + 1058.96)
1. Is the above method is correct to calculate my PF contribution per month?2. If yes, then employer's contribution is less than mine which is not correct.
3. In my company, employer's PF contribution was already included as a part of CTC i.e. 12% from employer was already paid to me, so I was contributing almost 24% from my salary. Since NOW I HAVE SUBMITTED THE WITHDRAWAL request of my PF, I should get those 24% monthly contribution back, but per above method, I am not getting it, correct
4. If my calculation is wrong, please send me the correct calculation and total amount I would receive as withdrawal.
Also, it would be great if you can let me know as how much time it would take if withdrawal from was submitted on 14th May 2012 and PF deduction was started on 1st April, 2010.
Thanks, Prashant
From India, Pune
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I would really appreciate if you help me to resolve my queries.
I was working with an IT organization for exact 2 years and I have resigned in May 2012. I opted for PF option and 12% of my basic salary and same amount as employer's contribution was deducted as PF contributions.
For April' 2010 to April 2011,
PF Deduction = 1600.00 (Employee's contribution)
For April' 2011 to April 2012,
PF Deduction = 2076.00 (Employee's contribution)
While reading through some articles on the net, I came across that Employer's contribution is bifurcated into sub parts.
E.g. For April' 2010 to April 2011,
My Contribution P/M = 12% of Basic 1600
Company's Contribution P/M = 12% of Basic = 1600
Employer’s contribution to EPS = 8.33% of Basic = 1110.64
This 1110.64 is higher than the max limit of Rs 541/month and hence
Employer’s contribution to EPS = 541
Therefore,
My Contribution P/M = 12% of Basic = 1600
Employer contribution to PF = 1600-541 = 1058.96
So Total PF contribution to PF account per month = 2658.92 (i.e. 1600 + 1058.96)
1. Is the above method is correct to calculate my PF contribution per month?2. If yes, then employer's contribution is less than mine which is not correct.
3. In my company, employer's PF contribution was already included as a part of CTC i.e. 12% from employer was already paid to me, so I was contributing almost 24% from my salary. Since NOW I HAVE SUBMITTED THE WITHDRAWAL request of my PF, I should get those 24% monthly contribution back, but per above method, I am not getting it, correct
4. If my calculation is wrong, please send me the correct calculation and total amount I would receive as withdrawal.
Also, it would be great if you can let me know as how much time it would take if withdrawal from was submitted on 14th May 2012 and PF deduction was started on 1st April, 2010.
Thanks, Prashant
From India, Pune
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Hi Prashant,
Greetings!
As per your calculations, you are absolutely correct. From April 10 to April 11, you will receive your amount based on your deductions, i.e., Employee's 12% and Employer's 12%. The same will apply in the following year as well. In the received amount, there is no doubt that you will get 24% per year.
Apart from this calculation, it pertains to PF and Pension. This means that when an employee's EPF deduction is 12%, the same percentage will be contributed by the employer. However, there is a breakdown in that; out of the employer's 12%, 3.67% will go towards PF and 8.33% towards your Pension. When you calculate both, it will automatically sum up to 12%.
Please be assured that you will receive your full amount.
Regards,
Ashwin
9921648385
From India, Pune
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1Greetings!
As per your calculations, you are absolutely correct. From April 10 to April 11, you will receive your amount based on your deductions, i.e., Employee's 12% and Employer's 12%. The same will apply in the following year as well. In the received amount, there is no doubt that you will get 24% per year.
Apart from this calculation, it pertains to PF and Pension. This means that when an employee's EPF deduction is 12%, the same percentage will be contributed by the employer. However, there is a breakdown in that; out of the employer's 12%, 3.67% will go towards PF and 8.33% towards your Pension. When you calculate both, it will automatically sum up to 12%.
Please be assured that you will receive your full amount.
Regards,
Ashwin
9921648385
From India, Pune
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Dear Prashant,
Have a nice day!
As per your calculation, you're absolutely correct. In Apr 10 to Apr 11, you will receive your amount as per your deduction i.e. Employee's 12% & Employer's 12% on the basic salary. The same will be received in the next year as well. In the receiving amount, there is no confusion; you will get 24% per year with interest, i.e., 9.5% for the year 2009-10 & 8.5% for the 2011-12 year.
Apart from this calculation part, it is a matter of PF and Pension. It means when an employee's EPF deduction is 12%, then the same will be from the employer's side. But there is a bifurcation in that; out of 12% from the employer, 3.67% will be PF and 8.33% will be your Pension. If you calculate both, automatically it will be 12%.
Please feel free. You will get 24% + interest on all your amounts for your service period.
Regards,
From India, Delhi
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Have a nice day!
As per your calculation, you're absolutely correct. In Apr 10 to Apr 11, you will receive your amount as per your deduction i.e. Employee's 12% & Employer's 12% on the basic salary. The same will be received in the next year as well. In the receiving amount, there is no confusion; you will get 24% per year with interest, i.e., 9.5% for the year 2009-10 & 8.5% for the 2011-12 year.
Apart from this calculation part, it is a matter of PF and Pension. It means when an employee's EPF deduction is 12%, then the same will be from the employer's side. But there is a bifurcation in that; out of 12% from the employer, 3.67% will be PF and 8.33% will be your Pension. If you calculate both, automatically it will be 12%.
Please feel free. You will get 24% + interest on all your amounts for your service period.
Regards,
From India, Delhi
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Dear Khafeeman & Moovendrapandi,
Thank you very much for your valuable inputs!
I was confused because of the following reasons:
1. I assumed that not the total 12% amount is paid by the employer, and therefore the company's contribution is less than mine, which takes the total figure down.
2. So, with the above calculation, I counted the total contribution as 1600 + 1058, which actually should be 1600 + 1600 for me when it comes to withdrawal.
3. Now, per your suggestions, I will get 3200/- * 12 months + the rate of interest for the respective year.
Thank you very much again and keep sharing your useful knowledge!
Thanks,
Prashant
From India, Pune
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Thank you very much for your valuable inputs!
I was confused because of the following reasons:
1. I assumed that not the total 12% amount is paid by the employer, and therefore the company's contribution is less than mine, which takes the total figure down.
2. So, with the above calculation, I counted the total contribution as 1600 + 1058, which actually should be 1600 + 1600 for me when it comes to withdrawal.
3. Now, per your suggestions, I will get 3200/- * 12 months + the rate of interest for the respective year.
Thank you very much again and keep sharing your useful knowledge!
Thanks,
Prashant
From India, Pune
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Dear Bhuvan,
I would not be a good person to answer your queries as I have recently joined this forum; I am as new as you are :). But don't worry, citeHR experts will shortly answer your query. It will be a new learning for me too!!
Thanks,
Prashant
From India, Pune
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I would not be a good person to answer your queries as I have recently joined this forum; I am as new as you are :). But don't worry, citeHR experts will shortly answer your query. It will be a new learning for me too!!
Thanks,
Prashant
From India, Pune
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Dear Mr.Prashant,
You are saying that max limit for EPS is 541 and u are deducting the same from 12% basic.
But my doubt is max limit for PF is 780 from employer side and employee side. But you are contributing more than that. So may be employer is giving to EPS is more than 541 (i.e. 8.33% of ur basic).
ur Contribution P/M = 12% of Basic = 1600
Employer’s contribution to EPS = 8.33% of Basic = 1110.64
Employer's contribution to EPF = 3.67% of basic = 490
so total contribution to EPF is 1600+490 =2090
Thats why u r not getting the accepting amount. I don't know is it correct r not.
Seniors plz correct me if i am wrong...
Thanks & Regards,
Meghana
From India, Hyderabad
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You are saying that max limit for EPS is 541 and u are deducting the same from 12% basic.
But my doubt is max limit for PF is 780 from employer side and employee side. But you are contributing more than that. So may be employer is giving to EPS is more than 541 (i.e. 8.33% of ur basic).
ur Contribution P/M = 12% of Basic = 1600
Employer’s contribution to EPS = 8.33% of Basic = 1110.64
Employer's contribution to EPF = 3.67% of basic = 490
so total contribution to EPF is 1600+490 =2090
Thats why u r not getting the accepting amount. I don't know is it correct r not.
Seniors plz correct me if i am wrong...
Thanks & Regards,
Meghana
From India, Hyderabad
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Dear Mr. Prashant,
I would like to clarify one thing: the EPF ceiling is Rs. 6500/-, and the deduction is Rs. 780/-. The EPF contribution from the employer's side is a maximum of Rs. 780/- (239 + 541). However, in your case, I think your company has obtained permission from EPFO with your consent to make deductions/contributions on the basic above Rs. 6500/- under para 26.
I am providing a summary of your contribution details, please review carefully:
Basic Sal. | Emp. Share | Er's share | Pen. Fund
2010-11
13335 | 1600 | 1059 | 541
2011-12
17300 | 2076 | 1535 | 541
Kindly multiply the above figures by 12, but ensure interest is calculated on EPF contributions only. Pension fund contributions are excluded from interest.
Thanks,
Mahender Rana
From India, Ludhiana
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I would like to clarify one thing: the EPF ceiling is Rs. 6500/-, and the deduction is Rs. 780/-. The EPF contribution from the employer's side is a maximum of Rs. 780/- (239 + 541). However, in your case, I think your company has obtained permission from EPFO with your consent to make deductions/contributions on the basic above Rs. 6500/- under para 26.
I am providing a summary of your contribution details, please review carefully:
Basic Sal. | Emp. Share | Er's share | Pen. Fund
2010-11
13335 | 1600 | 1059 | 541
2011-12
17300 | 2076 | 1535 | 541
Kindly multiply the above figures by 12, but ensure interest is calculated on EPF contributions only. Pension fund contributions are excluded from interest.
Thanks,
Mahender Rana
From India, Ludhiana
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Dear All,
As far as my understanding goes, for example, if one's basic is Rs. 10,000, then the PF amount for an employee's contribution is Rs. 1200 (both EPF and EPS - 12% of basic) and the employer's would be Rs. 780 (both EPF and EPS accounted for 12% of the minimum basic Rs. 6500). Am I correct? Kindly clarify.
Thanks
From United Kingdom
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As far as my understanding goes, for example, if one's basic is Rs. 10,000, then the PF amount for an employee's contribution is Rs. 1200 (both EPF and EPS - 12% of basic) and the employer's would be Rs. 780 (both EPF and EPS accounted for 12% of the minimum basic Rs. 6500). Am I correct? Kindly clarify.
Thanks
From United Kingdom
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