Can anyone tell me that is PF is calculated on Special allowance or not? If yes then please show me where is this written or from where i can get this information?
From India, Jaipur
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From India, Jaipur
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hi, if basic and da exceeded 6500 wat we do. in our company we are deducted only rs780 for the salary of rs.7500 is it correct?
From India, Coimbatore
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1From India, Coimbatore
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Hi,
At the time of joining, if the salary (Basic + DA) is more than Rs. 6500/-, PF contributions may not be deducted and the employee will be treated as an exempted employee.
In case the employee is already a member of PF in your firm, the salary may be restricted to Rs. 6500/- to recover the PF contributions.
Regards,
Venkat
From India, Bangalore
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At the time of joining, if the salary (Basic + DA) is more than Rs. 6500/-, PF contributions may not be deducted and the employee will be treated as an exempted employee.
In case the employee is already a member of PF in your firm, the salary may be restricted to Rs. 6500/- to recover the PF contributions.
Regards,
Venkat
From India, Bangalore
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Understanding Provident Fund (P.F.) Deductions
1) P.F. is deducted on Basic + D.A + Cash value of Food Allowance at 12%. It is a statutory deduction. D.A. is provided only in government departments. Private companies generally do not give Daily Allowance to their employees.
2) The company pays P.F. on either actual basic or capped basic. Capped basic is decided depending on company rules; it is not restricted. It's applicable to those employees whose basic exceeds Rs. 6500 only.
3) Employers and Employee Contributions are equal in P.F., which is 12%. This means a 12% contribution from the employee and a 12% contribution from the employer. The company's contribution is split into two parts: 8.33% on the Family Pension Fund and 3.67% on the Employee Provident Fund.
4) The employer also needs to pay additional charges every month over and above the PF company contribution. The breakdown is as follows:
- 1.1% P.F. Administration Charges,
- 0.5% on Employee Deposit Linked Insurance (E.D.L.I), and
- 0.01% E.D.L.I Administration Charges.
From India, Jaipur
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1) P.F. is deducted on Basic + D.A + Cash value of Food Allowance at 12%. It is a statutory deduction. D.A. is provided only in government departments. Private companies generally do not give Daily Allowance to their employees.
2) The company pays P.F. on either actual basic or capped basic. Capped basic is decided depending on company rules; it is not restricted. It's applicable to those employees whose basic exceeds Rs. 6500 only.
3) Employers and Employee Contributions are equal in P.F., which is 12%. This means a 12% contribution from the employee and a 12% contribution from the employer. The company's contribution is split into two parts: 8.33% on the Family Pension Fund and 3.67% on the Employee Provident Fund.
4) The employer also needs to pay additional charges every month over and above the PF company contribution. The breakdown is as follows:
- 1.1% P.F. Administration Charges,
- 0.5% on Employee Deposit Linked Insurance (E.D.L.I), and
- 0.01% E.D.L.I Administration Charges.
From India, Jaipur
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Salary Sheet & PF PT Calculation & Challan.xls