Dear Seniors,
I totally got confused with the contribution of employer in Pf, As per my knowledge the maximum basic salary is 6500/- for employer and 8.33% amount of EPS and rest of 3.67% in EPF and 1.61% is admin charges, now the question is what is the amount in which we should can calculate the 3.67% or 1.61%. for Example the Gross salary is 10000/- Employee deducting 12% of the 10000/- Then what would b the Employer contribution in every account .
I am totally confused. Please help me out in the same.
From India, Delhi
2I totally got confused with the contribution of employer in Pf, As per my knowledge the maximum basic salary is 6500/- for employer and 8.33% amount of EPS and rest of 3.67% in EPF and 1.61% is admin charges, now the question is what is the amount in which we should can calculate the 3.67% or 1.61%. for Example the Gross salary is 10000/- Employee deducting 12% of the 10000/- Then what would b the Employer contribution in every account .
I am totally confused. Please help me out in the same.
From India, Delhi
Dear Asha, The attached file will help you and I hope clears your doubt. Regards Hrd4u
From India, Bangalore
From India, Bangalore
Even though the gross salary(basic + DA + retaining allowance, if any) of an employee is Rs.10000/-p.m and he is the member of the P.F scheme, it is not obligatiry for the employer to contribute on the wages exceeding Rs.6500/ p.m.Thus the employer's contribution of 12% and admin cahrges can be calculated on Rs.6500/-p.m.
B.Saikumar
HR & Labour Law advsior
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advsior
Mumbai
From India, Mumbai
Dear All,
Pf is calculated on only basic of salary, not DA
2. Employee contibution is 12%
3. Employer contribution is devided in two parts
A) 3.67%- which goes directly in the pf account of an emplyee.
B) 8.33%- Which goes to family Pension Scheme.
Including above, employer has to pay Administrative Charges = 1.10% on
the total ammount of basic ie (6500 & above also).
Then Employer has to pay contribution for EDLI Scheme = 0.5% & Administrative charges =0.01% of the Ammount of total basic cosider for Family pension scheme which does not include total basic amount above 6500
So this total is= 12%( 3.67+8.33)+1.10+0.5+0.01=13.61% paid by employer.
6000 basic = Pf contribution by Emplyer=720+66+30+0.6=816.6
voluntary
Ceiling was 3500/- upto 01.10.94, then revised to 5000/-.
Then it revaised to 6500/- from 01.04.1995.
and remains same, further there is no amendment.
if the employee basic wages exceeding Rs.6500/-, there is
no liability on the part of employer to pay PF contribution.
If employee joined with less than above basic, continuing service with
more than the basic of Rs.6500/- , employer bound to pay PF contribution
on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more
than that.
I hope your doubt will get clear.
Regards
Samanta
From India, Bangalore
Pf is calculated on only basic of salary, not DA
2. Employee contibution is 12%
3. Employer contribution is devided in two parts
A) 3.67%- which goes directly in the pf account of an emplyee.
B) 8.33%- Which goes to family Pension Scheme.
Including above, employer has to pay Administrative Charges = 1.10% on
the total ammount of basic ie (6500 & above also).
Then Employer has to pay contribution for EDLI Scheme = 0.5% & Administrative charges =0.01% of the Ammount of total basic cosider for Family pension scheme which does not include total basic amount above 6500
So this total is= 12%( 3.67+8.33)+1.10+0.5+0.01=13.61% paid by employer.
6000 basic = Pf contribution by Emplyer=720+66+30+0.6=816.6
voluntary
Ceiling was 3500/- upto 01.10.94, then revised to 5000/-.
Then it revaised to 6500/- from 01.04.1995.
and remains same, further there is no amendment.
if the employee basic wages exceeding Rs.6500/-, there is
no liability on the part of employer to pay PF contribution.
If employee joined with less than above basic, continuing service with
more than the basic of Rs.6500/- , employer bound to pay PF contribution
on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more
than that.
I hope your doubt will get clear.
Regards
Samanta
From India, Bangalore
Hi Ms. Harapriya, For Your Point of "DA" Not attract PF..only Basic...If you have any Act or section says DA not attract PF ......or need not to take.....
From India, Coimbatore
From India, Coimbatore
dear samanta Pls Let me know if basic salary is 10,000/- employee contribution= 780 employers contribution= 780 admin and edli charge=105 is it correct mukund
From India, Solapur
From India, Solapur
Dear hrd4u, Thank u for excel sheet now i finally come to know its not necessary that the both 12% should be equal. Employer can calculate 12% (8.33%+ 3.67%) on 6500 except admin charges.
From India, Delhi
From India, Delhi
Dear Asha,
Please find the below details for PF calculation on basic salary:
A/C NO.1 :- From Employee 12% + Employer 3.67%
A/C No.2 :- 1.1 % (it's called PF admin charges)
A/C No.10 :- 8.33 % (pension)
A/C No. 21 :- 0.5% (E.D. L.I)
A/C No.22 :- 0.01 % (EDLI admin charges)
Note:- The PF Ceiling amount is Rs.6500 /- if the Basic salary is >= 6500 /- the pension salary will be paid Rs.541 and remaining goes to PF i.e A/C NO.1
Please let me know any clarification on this.
Regards,
Jay
From India, Hyderabad
Please find the below details for PF calculation on basic salary:
A/C NO.1 :- From Employee 12% + Employer 3.67%
A/C No.2 :- 1.1 % (it's called PF admin charges)
A/C No.10 :- 8.33 % (pension)
A/C No. 21 :- 0.5% (E.D. L.I)
A/C No.22 :- 0.01 % (EDLI admin charges)
Note:- The PF Ceiling amount is Rs.6500 /- if the Basic salary is >= 6500 /- the pension salary will be paid Rs.541 and remaining goes to PF i.e A/C NO.1
Please let me know any clarification on this.
Regards,
Jay
From India, Hyderabad
Dear Members,
I am not expert in making salary in excel,manually.I always make by salary software.
but current company don't have software.so i have to make salary by excel software.please provide me guidelines and format of excel in which i can make salary easily.Please provide sheet which give all details like deductions,earnings,over time,esi,pf contributions and deductions etc.,whatever are cover in salary by mannual making,I would be thankful to you.
Regards
shah
From India, Delhi
I am not expert in making salary in excel,manually.I always make by salary software.
but current company don't have software.so i have to make salary by excel software.please provide me guidelines and format of excel in which i can make salary easily.Please provide sheet which give all details like deductions,earnings,over time,esi,pf contributions and deductions etc.,whatever are cover in salary by mannual making,I would be thankful to you.
Regards
shah
From India, Delhi
Dear Haripriya,
Excellent explanation.
Just one simple clarification :It's depending on the organization as there is no any objection if the employer pay the basic salary more than Rs.6500 also, the PF will be deducted on actual basic salary from the employee part 12% and employer part 12%(i.e.pension Rs.541/ and remaining PF)+1.61%(Admin charges)= 13.61%
Regards,
Jay
From India, Hyderabad
Excellent explanation.
Just one simple clarification :It's depending on the organization as there is no any objection if the employer pay the basic salary more than Rs.6500 also, the PF will be deducted on actual basic salary from the employee part 12% and employer part 12%(i.e.pension Rs.541/ and remaining PF)+1.61%(Admin charges)= 13.61%
Regards,
Jay
From India, Hyderabad
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