Hello Senior,
I am new one in HR profession . I little confused about PF contribution percentage from Employer site. If I am not wrong both Employer and employee contribute 12% of basic salary in PF account while Employer 8.33 goes to pension fund and rest of 3.67 goes to PF account. But I see some seniors' post where they mention Employer contribution is 13.61% in PF account and PF is calculated from Basic + all allowances. So senior please help me to chose the right one.
From India, undefined
I am new one in HR profession . I little confused about PF contribution percentage from Employer site. If I am not wrong both Employer and employee contribute 12% of basic salary in PF account while Employer 8.33 goes to pension fund and rest of 3.67 goes to PF account. But I see some seniors' post where they mention Employer contribution is 13.61% in PF account and PF is calculated from Basic + all allowances. So senior please help me to chose the right one.
From India, undefined
632
As per Act, only HRA is exempted from PF in Gross Wages. But, I can see many companies pay PF only from Basic (+DA). During PF inspection, this may be scrutinized by the PF officials. Bonus, Incentive, Reimbursable expenses/allowances can be exempted.
The current employer contribution is 13.15%.
PS: During salary CTC calculation, it is advised by finance experts to put employer contribution as 12%, as remaining are admin charges.
From India, Chennai
The current employer contribution is 13.15%.
PS: During salary CTC calculation, it is advised by finance experts to put employer contribution as 12%, as remaining are admin charges.
From India, Chennai
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Basic 4 pf.pdf