Hi all,As kown a basic sal of 6500 is the celing for PF calculation i.e employee caotirbutes Rs. 780/- & Employer contributes Rs. 780/- i.e. a sum of Rs. 1560 is deposited in PF account. Request Help on bifurcation of Rs. 1560/- with respoect to what amount goes in PF & Pension Scheam.Kindly HelpRegardsNikhilesh
From India, Mumbai
From India, Mumbai
Dear Nikhilesh,
As per the PF Act, the total 24 % ( Employees 12 % and employers 12%) is divided as under
The Employees contribution i.e 12 % of (Basic + DA) would go into Provident Fund Account
The Employers contribution i.e 12 % is divided into 2 parts
Into Pension Pund - 8.33 % of Basic & DA subject to maximum Basic + DA is RS 6500/- per month.
Remaining part of 12 % would go into Provident Fund.
So the 24 % would divided into PF Fund and Pension Fund as under
4As per the PF Act, the total 24 % ( Employees 12 % and employers 12%) is divided as under
The Employees contribution i.e 12 % of (Basic + DA) would go into Provident Fund Account
The Employers contribution i.e 12 % is divided into 2 parts
Into Pension Pund - 8.33 % of Basic & DA subject to maximum Basic + DA is RS 6500/- per month.
Remaining part of 12 % would go into Provident Fund.
So the 24 % would divided into PF Fund and Pension Fund as under
- Provident Fund = Total Emplyees contribution + remaining part of employers contribution
- Pension Fund = Only Employer contribution. 8.33 % of Basic + DA, subject to maximum Basic + DA is RS 6500/- per month. If the Basic + DA is less then Rs 6500/- the canculation would made on the actual.
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Basic 4 pf.pdf