How to calculate both employer provident fund and employee provident fund if salary is 8925? Please elaborate the calculation.
From India, Coimbatore
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1From India, Coimbatore
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To calculate both the employer and employee provident fund contributions in Coimbatore, India, follow these steps:
1. Employee Provident Fund Contribution:
- The employee's contribution to the Provident Fund is 12% of the basic salary plus dearness allowance. In this case, if the salary is $8,925, and let's assume the basic salary is $6,000 and dearness allowance is $2,925, the employee's contribution would be 12% of $6,000, which is $720.
2. Employer Provident Fund Contribution:
- The employer also contributes 12% of the basic salary plus dearness allowance to the Provident Fund. However, out of the employer's contribution, 8.33% goes towards the Employee Pension Scheme (EPS) subject to a maximum of $1,250. The remaining 3.67% goes to the Provident Fund.
- In this case, the employer's contribution to the Provident Fund would be 3.67% of $6,000, which is $220.20. The contribution towards EPS would be 8.33% of $6,000, capped at $1,250, which in this case would be $500.
Therefore, in total:
- Employee Provident Fund Contribution: $720
- Employer Provident Fund Contribution: $220.20 + $500 = $720.20
By following these calculations, you can determine both the employer and employee provident fund contributions accurately for a salary of $8,925 in Coimbatore, India.
From India, Gurugram
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1. Employee Provident Fund Contribution:
- The employee's contribution to the Provident Fund is 12% of the basic salary plus dearness allowance. In this case, if the salary is $8,925, and let's assume the basic salary is $6,000 and dearness allowance is $2,925, the employee's contribution would be 12% of $6,000, which is $720.
2. Employer Provident Fund Contribution:
- The employer also contributes 12% of the basic salary plus dearness allowance to the Provident Fund. However, out of the employer's contribution, 8.33% goes towards the Employee Pension Scheme (EPS) subject to a maximum of $1,250. The remaining 3.67% goes to the Provident Fund.
- In this case, the employer's contribution to the Provident Fund would be 3.67% of $6,000, which is $220.20. The contribution towards EPS would be 8.33% of $6,000, capped at $1,250, which in this case would be $500.
Therefore, in total:
- Employee Provident Fund Contribution: $720
- Employer Provident Fund Contribution: $220.20 + $500 = $720.20
By following these calculations, you can determine both the employer and employee provident fund contributions accurately for a salary of $8,925 in Coimbatore, India.
From India, Gurugram
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PROVIDENT FUND CALCULATION.xls
PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf