Hi, I would like to know about salary / PF Calculations. How do we need to calculate salary, Is that 26 days per month / 31 days per month Or average we need to consider 30 days? What about February month then? If some employee is on leave then take home will vary based on No of days while calculating the salary. Request you to share your Knowledge. I am working for IT Company, Turn over: 60+ Thanks in Advance, Regards, Sritha.R
From India, Hyderabad
6From India, Hyderabad
PF is calculated on the actual salary (basic + DA only) paid to the employees. If you have paid salary for 21 days only ( the rest of the days employee was on leave without pay), then that salary will qualify for PF deduction and contribution. If you have paid salary for 30 days that will be the salary for PF. If you pay salary for 28/ 29 days in the month of February, then you need to take that reduced salary for PF also. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
Thanks Madhu Its nice to see that you are from ICFAI INC, Is there any hard and fast rule while we calculating the salary. How many days we need to consider? Warm Regards, Sritha,R
From India, Hyderabad
From India, Hyderabad
Dear Sritha, Salary may be calculated on a daily basis, weekly basis, fortnightly basis or monthly basis whereas PF returns are to be filed on monthly basis only. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
Hi sritha, here is no hard and fast rule for calculation salary at current month days or 26. but auditors object to calculate on 26 as weekly rest days are paid. jav
From Pakistan, Lahore
From Pakistan, Lahore
PF towards salary has to be calculated in 30 days. ie. 365 days / 12 months = 30.416 rounded to 30 days per month. but in case of Ms. Sritha, if she calculates in 26 days (avoiding weekly off days) there will be a violation of labour rule, that the labour should attain a weekly off. so all the calculation of EPF and the ESI has to be done in 30 days a month manner. Regards, Linnan
From India, Mumbai
From India, Mumbai
12% equal contribution towards PF from both employer and employee.. PF & Superannuation contribution put together should not exceed 27% of total contribution towards pension.. in PF.. the employer has the flexibility to contribute at 12% of employee's basic or Rs.6500 per employee..now out of the employer's PF contribution, 8.33% of basic/Rs.6500 max is segregated and credited to the pension fund.. due to this fact, depending upon the way the PF fund is managed,company owned/ third party, the encashment amount at the time of separation will vary.. Cheers, Bala
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls