Dear Friends,
i am so confused we always EDLI & Admin Charges calculate on PF Salary But before one month we have installed new payroll software but software calculate EDLi & Admin charges on 6500/- or Pension Limit.
it creates diffrence as per manually calculation of monthly challan form.
as per my knowledge pf return should be 25.61% of PF Salary.
please tell me what is right procedure?
even i am working here last 3 year but no any auditor object on this calculation.
Thanks
Punit Dixit
From India, Surat
1i am so confused we always EDLI & Admin Charges calculate on PF Salary But before one month we have installed new payroll software but software calculate EDLi & Admin charges on 6500/- or Pension Limit.
it creates diffrence as per manually calculation of monthly challan form.
as per my knowledge pf return should be 25.61% of PF Salary.
please tell me what is right procedure?
even i am working here last 3 year but no any auditor object on this calculation.
Thanks
Punit Dixit
From India, Surat
Dear Punit Dixit,
For PF calculation you may take actual salary. But for Pension & EDLI, it is to be restricted at ceiling salary i.e, Rs. 6500. As EDLI calculation is central pooling basis, calculate the cosolidate salary (subject to individual ceiling of Rs. 6500) of applicable employees. Calculate the EDLI & admin charges on this total salary & round to nearest rupee.
Abbas.P.S
From India, Bangalore
For PF calculation you may take actual salary. But for Pension & EDLI, it is to be restricted at ceiling salary i.e, Rs. 6500. As EDLI calculation is central pooling basis, calculate the cosolidate salary (subject to individual ceiling of Rs. 6500) of applicable employees. Calculate the EDLI & admin charges on this total salary & round to nearest rupee.
Abbas.P.S
From India, Bangalore
Dear All,
greeting of the day!!!
I have also same confusion regarding PF challan(EDLI & Admin charges). In my previous company, used to calculation on PF challan(EDLI & Admin) calculated on 25.61% on PF salary. but in my new company it is calculated on Rs. 6500/- . Plz guide me what is right way? Because I have read in somewhere in Labour Law, PF challan (EDLI & ADMIN) should calculated on Rs. 6500/-.
Thanks & Regards,
Parmod
From India, New Delhi
greeting of the day!!!
I have also same confusion regarding PF challan(EDLI & Admin charges). In my previous company, used to calculation on PF challan(EDLI & Admin) calculated on 25.61% on PF salary. but in my new company it is calculated on Rs. 6500/- . Plz guide me what is right way? Because I have read in somewhere in Labour Law, PF challan (EDLI & ADMIN) should calculated on Rs. 6500/-.
Thanks & Regards,
Parmod
From India, New Delhi
Dear Punit Dixit and Parmod,
The statautory contribution of PF, EPS & EDLI are upto a ceiling salary of Rs. 6500. But some organisations contribute to PF on actual salary beyond Rs. 6500. This is not statutory, but optional. I shall quote one example both way for a salary of Rs. 10,000.
contribution on statutory limit.
Employee contribution to PF (12% of 6500) - 780
Employer contribution to EPS (8.33% of 6500) - 541
Employer contribution to PF (780-541) - 239
Administration Charges on PF (1.1% of 6500) -71.50
Employer contribution to EDLI (0.5% of 6500) - 32.50
Administration Charges on PF (.01% of 6500) - 0.65
Total -1604.65
Contribution on full salary
Employee contribution to PF (12% of 10000) - 1200
Employer contribution to EPS (8.33% of 6500) - 541
Employer contribution to PF (1200-541) - 659
Administration Charges on PF (1.1% of 10000) - 110
Employer contribution to EDLI (0.5% of 6500) - 32.50
Administration Charges on PF (.01% of 6500) - 0.65
Total - 2543.15
Abbas.P.S
From India, Bangalore
The statautory contribution of PF, EPS & EDLI are upto a ceiling salary of Rs. 6500. But some organisations contribute to PF on actual salary beyond Rs. 6500. This is not statutory, but optional. I shall quote one example both way for a salary of Rs. 10,000.
contribution on statutory limit.
Employee contribution to PF (12% of 6500) - 780
Employer contribution to EPS (8.33% of 6500) - 541
Employer contribution to PF (780-541) - 239
Administration Charges on PF (1.1% of 6500) -71.50
Employer contribution to EDLI (0.5% of 6500) - 32.50
Administration Charges on PF (.01% of 6500) - 0.65
Total -1604.65
Contribution on full salary
Employee contribution to PF (12% of 10000) - 1200
Employer contribution to EPS (8.33% of 6500) - 541
Employer contribution to PF (1200-541) - 659
Administration Charges on PF (1.1% of 10000) - 110
Employer contribution to EDLI (0.5% of 6500) - 32.50
Administration Charges on PF (.01% of 6500) - 0.65
Total - 2543.15
Abbas.P.S
From India, Bangalore
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EDLI CALCULATION.xls x