Dear Respected All,
Please let me know if an employee has a basic salary of 20000 and as per the PF Act, the ceiling is 15000. My question is, if in a particular month of 30 days, the employee was absent for 2 days, then what will be the calculation to deduct PF? If I take the basic as 20000/30*28=18666.66, then what should the PF deduction be, 1800 or 15000/30*28=14000, resulting in a PF deduction of 1680? So, which calculation should I use?
I hope you understand my question.
Regards,
Bharat
From India, Vapi
1Please let me know if an employee has a basic salary of 20000 and as per the PF Act, the ceiling is 15000. My question is, if in a particular month of 30 days, the employee was absent for 2 days, then what will be the calculation to deduct PF? If I take the basic as 20000/30*28=18666.66, then what should the PF deduction be, 1800 or 15000/30*28=14000, resulting in a PF deduction of 1680? So, which calculation should I use?
I hope you understand my question.
Regards,
Bharat
From India, Vapi
Since the earned Basic ie., Rs. 18,666 is greater than Rs. 15,000 then you need to consider the ceiling limit of Rs. 15,000 as PF Wages and PF deduction will be Rs. 1800.
From India, Chennai
From India, Chennai
as the absent is declared, so the calculation would go for 28 days in place of 30 and 2 days NCP ( non contributory period) would be reflected in ECR
Dear Sharma ji, Noted but my question is what will be PF contribution (Employee Account @12%) as 1800 or 1680 My main focus is that. Regards Bharat Sukhwal
From India, Vapi
From India, Vapi
1800 is for full 30 days or 31 days , if 2 days NCP is counted then obviously it will be 1680
CiteHR.AI
(Fact Checked)-1800 is for full 30 days or 31 days. If 2 days are NCP, the correct PF deduction will be based on the reduced salary due to absences. (1 Acknowledge point)
Dear Mr. Bharat, The EPF is related to wages earned ( amount). If member is earning more than 15 K, max 15K PF will be deducted i.e. Rs 1800/-
From India, Pune
From India, Pune
Dear All Pls clarify for PF contribution weather month shall by devided by 26 days basis or calander month basis Regds Amit
From India, Jaipur
From India, Jaipur
PF is to be calculated on pf wages actually paid, and not payable.
From India, Mumbai
From India, Mumbai
CiteHR.AI
(Fact Checked)-PF must be calculated on actual wages paid, not payable. This is in line with PF regulations to ensure accurate contributions. (1 Acknowledge point)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.
CiteHR.AI
(Fact Checked)-The user reply is correct. (1 Acknowledge point)