Hi all, my self srikanth working as an Jr.HR Executive in a security company in Hyderabad. I\'m really confused with the PF slip calcuations. Many of our colleagues from other department frequently ask me what all this calculations actually are? but I\'m unable to explain them. Can any one please help me out with all these calculations..
From India, Hyderabad
1From India, Hyderabad
Hi....Srikanth,
In Which Company r u working..what problem of PF calculation... am also from hyderabad..i can help u.. can send me your mail id? i'll send you calculation details...ok
ThanQ
W/rgds
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JAY
From India, Hyderabad
In Which Company r u working..what problem of PF calculation... am also from hyderabad..i can help u.. can send me your mail id? i'll send you calculation details...ok
ThanQ
W/rgds
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JAY
From India, Hyderabad
Hi Jay,
I'm working in Group 4 Security services (G4S). Calculations in the sense i'm not aware of all the coloumns in PF silp like EMP, EMPLOYER contributions, Opening and closing Balance, Ceiling limit for PF, ETC. Please let me know if you know it.
Thanks & Regards
Srikanth
From India, Hyderabad
I'm working in Group 4 Security services (G4S). Calculations in the sense i'm not aware of all the coloumns in PF silp like EMP, EMPLOYER contributions, Opening and closing Balance, Ceiling limit for PF, ETC. Please let me know if you know it.
Thanks & Regards
Srikanth
From India, Hyderabad
Op. Bal. means its last year pf amount in pf dept. Emp amt is 12% & Empr amt is 3.67% ( bal 8.33% is going to pension a/c.) and clos. bal. means last year pf amt + current year pf amt = clos. bal. that is also emp 12% and empr 3.67% only. (Above 8.33%). if the emp ask you how much pf amt for me. u can tell them only 24% (12%+3.67%+8.33%).
Ex:
12% amt is Rs. 100 (Emp Contribution)
3.67% amt is Rs. 31 (Empr Contribution)
8.33% amt is Rs. 69 (Empr Contribution) (Pension amt)
The total Amt is Rs. 200/- will get person after pf withdrawls befoure 10 year service (if incomplete service)
Regards
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JAY
From India, Hyderabad
Ex:
12% amt is Rs. 100 (Emp Contribution)
3.67% amt is Rs. 31 (Empr Contribution)
8.33% amt is Rs. 69 (Empr Contribution) (Pension amt)
The total Amt is Rs. 200/- will get person after pf withdrawls befoure 10 year service (if incomplete service)
Regards
-------
JAY
From India, Hyderabad
Hay Srikanth & Jay,
In short, you have already seen your Bank pass book,is it not, PF A/c. statement also nothing more than that. Except that, there are compulsory deposits from you as well as from your co. as per PF Act.
Imagine that your Salary is Rs.5000/-p.m. on that you have to put 12% in your PF A/c and matching 12% from your co. This deposits earn interest which is added periodically and monthly closing balance is indicated. And when you are eligible and want to take, you can avail loan (refundable monthly-EMI, which is added back in your a/c) and withdraw (non-refunable) which is deducted and for every such transaction closing balance is indicated. What is the confusion in this. To be precise, First of all understand your bank pass book and take up PF A/c. statement next.
kumar.s.
From India, Bangalore
In short, you have already seen your Bank pass book,is it not, PF A/c. statement also nothing more than that. Except that, there are compulsory deposits from you as well as from your co. as per PF Act.
Imagine that your Salary is Rs.5000/-p.m. on that you have to put 12% in your PF A/c and matching 12% from your co. This deposits earn interest which is added periodically and monthly closing balance is indicated. And when you are eligible and want to take, you can avail loan (refundable monthly-EMI, which is added back in your a/c) and withdraw (non-refunable) which is deducted and for every such transaction closing balance is indicated. What is the confusion in this. To be precise, First of all understand your bank pass book and take up PF A/c. statement next.
kumar.s.
From India, Bangalore
Dear Sir,
You need not calculate the amount in P.F slip. You have to submit annual Returns From-6A and 3A
every year. The P.F authorities will issue P.F slip from their end.
In the P.F. slip it will be available as Previous Balance+Interest accrued=total amount of Balance+ Current year amount - P.F advances taken= Closing Balance amount. ( Pl.see the slip)
D.Gurumurthy
HR/IR Consultant
From India, Hyderabad
You need not calculate the amount in P.F slip. You have to submit annual Returns From-6A and 3A
every year. The P.F authorities will issue P.F slip from their end.
In the P.F. slip it will be available as Previous Balance+Interest accrued=total amount of Balance+ Current year amount - P.F advances taken= Closing Balance amount. ( Pl.see the slip)
D.Gurumurthy
HR/IR Consultant
From India, Hyderabad
hai my self s.sathish working as a hr executive from daejung moparts pvt ltd. now our company going to be a salary nagosation. i want agreement format from employer and employee
From India, Madras
From India, Madras
Hi Srikanth,
I think your question is how to understand PF slip received from PFO to explain to your employees. First of all, please know that the PFO maintains a ledger for every PF account similar to a bank account. Credits and debits are posted every month in this ledger. While credits that occur before 5th of the month are eligible for interest calculation in that month, debit even on the last day of the month is not eligible for the interest in that month. PF slip captures the gist of the ledger (OB, total of credits, total of debits, interest calculated and CB).
I am attaching a model PF ledger, which is self explanatory. The gist of transactions for the PF slip are shown at the end of the attachment.
The essence for you to know is that "interest bearing balance" (IBB) is calculated every month, total is struck at the end of 12th month, and average IBB is calculated by dividing the total by 12. One month's interest @ prevailing rate (9%) is calculated on this average IBB. If you have details of credits and debits, you can create a ledger and verify whether the interest shown has been calculated correctly.
Hope this will suffice.
Regards,
K Raajaram
From India, Bangalore
I think your question is how to understand PF slip received from PFO to explain to your employees. First of all, please know that the PFO maintains a ledger for every PF account similar to a bank account. Credits and debits are posted every month in this ledger. While credits that occur before 5th of the month are eligible for interest calculation in that month, debit even on the last day of the month is not eligible for the interest in that month. PF slip captures the gist of the ledger (OB, total of credits, total of debits, interest calculated and CB).
I am attaching a model PF ledger, which is self explanatory. The gist of transactions for the PF slip are shown at the end of the attachment.
The essence for you to know is that "interest bearing balance" (IBB) is calculated every month, total is struck at the end of 12th month, and average IBB is calculated by dividing the total by 12. One month's interest @ prevailing rate (9%) is calculated on this average IBB. If you have details of credits and debits, you can create a ledger and verify whether the interest shown has been calculated correctly.
Hope this will suffice.
Regards,
K Raajaram
From India, Bangalore
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls