Hi. Want to understand PF of employees should be deducted from Basic salary componant or it should be over and above the Basic amount of an employees salary.
For Eg - Basic+HRA+Conveyance+sp allowance+ employees pf+ employers pf or
Basic+HRA+Conveyance+sp allowance+employers pf.
From India, Surat
1For Eg - Basic+HRA+Conveyance+sp allowance+ employees pf+ employers pf or
Basic+HRA+Conveyance+sp allowance+employers pf.
From India, Surat
Dear IQ India,
Provident Fund is generally deducted both from employee as well as the employer, 12 % of (Basic+DA). Establishments employing 20 or more persons are required to deduct PF from the salary of employees.The salary breakup for monthly salary (10000) is not fixed as it varies from company to company and in general it includes Basic, Conveyance(800), HRA (40% or 50% of Basic), Medical allowance, Special allowance etc..
Therefore a small example:
Consider the basic of an employee if less than 6000. (say 6000/-)
Employee contribution will be 12% = 720
Employer contribution will be 12% (which is again classified),
EPF (3.67%)= 220
EPS (8.33%) = 499
EPF Admin charges (1.10%) = 66
EDLI (0.50%) = 30
EDLI Admn charges (0.01%) = 1
Consider the basic of an employee if less than 10,000/-
Employee contribution will be 12% = 659
Employer contribution will be 12% (which is again classified),
EPF (3.67%)= 541
EPS (8.33%) = 541 (It is calculated on 6500/- and the remaining amt is added to the EPF)
EPF Admin charges (1.10%) = 110
EDLI (0.50%) = 33
EDLI Admn charges (0.01%) = 1
Hope this clarifies your query.
From India, Visakhapatnam
Provident Fund is generally deducted both from employee as well as the employer, 12 % of (Basic+DA). Establishments employing 20 or more persons are required to deduct PF from the salary of employees.The salary breakup for monthly salary (10000) is not fixed as it varies from company to company and in general it includes Basic, Conveyance(800), HRA (40% or 50% of Basic), Medical allowance, Special allowance etc..
Therefore a small example:
Consider the basic of an employee if less than 6000. (say 6000/-)
Employee contribution will be 12% = 720
Employer contribution will be 12% (which is again classified),
EPF (3.67%)= 220
EPS (8.33%) = 499
EPF Admin charges (1.10%) = 66
EDLI (0.50%) = 30
EDLI Admn charges (0.01%) = 1
Consider the basic of an employee if less than 10,000/-
Employee contribution will be 12% = 659
Employer contribution will be 12% (which is again classified),
EPF (3.67%)= 541
EPS (8.33%) = 541 (It is calculated on 6500/- and the remaining amt is added to the EPF)
EPF Admin charges (1.10%) = 110
EDLI (0.50%) = 33
EDLI Admn charges (0.01%) = 1
Hope this clarifies your query.
From India, Visakhapatnam
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls