Dear Friends,
Kindly help me clarify the doubt regarding the admin charges calculation for Voluntary PF (deducted by Employer).
Salary per Month: 22000 (Basic: 11000, DA: 4400, HRA: 6600)
Description Employer Employee
EPF Contribution 15000 x 12% = 1800 15000 x 3.67% = 551
EPS Contribution 15000 x 8.33% = 1250
EDLIS Contribution 15000 x 0.5% = 75
EPF Administrative Charges 15000 x 0.5% = 75
If an employee wants to deposit VPF of 2000
VPF Administrative Charges is (2000/12%) x 0.5% = 83...
Is this calculation correct, Please clarify the calculation method.
With Regards,
Nijanth
From India, Tirupur
Kindly help me clarify the doubt regarding the admin charges calculation for Voluntary PF (deducted by Employer).
Salary per Month: 22000 (Basic: 11000, DA: 4400, HRA: 6600)
Description Employer Employee
EPF Contribution 15000 x 12% = 1800 15000 x 3.67% = 551
EPS Contribution 15000 x 8.33% = 1250
EDLIS Contribution 15000 x 0.5% = 75
EPF Administrative Charges 15000 x 0.5% = 75
If an employee wants to deposit VPF of 2000
VPF Administrative Charges is (2000/12%) x 0.5% = 83...
Is this calculation correct, Please clarify the calculation method.
With Regards,
Nijanth
From India, Tirupur
The administration charge is payable on the total amount of the contribution. When you are paying Contributions on a higher salary administration charges should also be on that contribution.
From India, Kannur
4249From India, Kannur
There is a correction to the above that the amount of administration charges is calculated on the total amount of pay/ salary on which the contribution is payable. Therefore, if the employee wishes to pay contribution on higher rate but on the same salary, there will not be any change in the admin charges since it is on the salary and not on the contribution.
From India, Kannur
From India, Kannur
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.
VPF and PF Loans .doc
PF Recovery Doubt.xls