My CTC is 5,24,000 (52000 Monthly).
Total Days: 31.00 (October)
LOP (Loss of Pay): 0.50
Work days: 31.00
Effective Work days: 30.50
These are all based on 30.5 days.
I am contributing a minimum PF of 12%, which is 1800, up from 780 previously.
The 30.5 days' salary is 51161, and 40% of the basic is 20465. What I assume is that both me and my employer are contributing 1800 monthly (12% of 15000), totaling 3600. However, there still seems to be some unclear amount deducted.
20465 + 10232 + 787 + 10478 + 7010 = 48972 - 51161 = 2189 - Employer PF contribution 1800 (2189 - 1800) = 389. Why has this extra money been deducted?
I want to understand the calculation of my employer's contribution to PF and how other allowances are calculated. I thought the amount left after basic, HRA, conveyance, and FBP is considered as Other Allowance.
BASIC: 20465.00
HRA: 10232.00
CONVEYANCE: 787.00
TAXABLE FBP: 10478.00
OTHER ALLOWANCE: 7010.00
Deductions:
LABOUR WELFARE FUND: 10.00
PF: 1771.00
Total Earnings: Rs. 48972.00
Total Deductions: Rs. 1781.00
Net Pay: Rs. 47191.00
From India, Faridabad
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Total Days: 31.00 (October)
LOP (Loss of Pay): 0.50
Work days: 31.00
Effective Work days: 30.50
These are all based on 30.5 days.
I am contributing a minimum PF of 12%, which is 1800, up from 780 previously.
The 30.5 days' salary is 51161, and 40% of the basic is 20465. What I assume is that both me and my employer are contributing 1800 monthly (12% of 15000), totaling 3600. However, there still seems to be some unclear amount deducted.
20465 + 10232 + 787 + 10478 + 7010 = 48972 - 51161 = 2189 - Employer PF contribution 1800 (2189 - 1800) = 389. Why has this extra money been deducted?
I want to understand the calculation of my employer's contribution to PF and how other allowances are calculated. I thought the amount left after basic, HRA, conveyance, and FBP is considered as Other Allowance.
BASIC: 20465.00
HRA: 10232.00
CONVEYANCE: 787.00
TAXABLE FBP: 10478.00
OTHER ALLOWANCE: 7010.00
Deductions:
LABOUR WELFARE FUND: 10.00
PF: 1771.00
Total Earnings: Rs. 48972.00
Total Deductions: Rs. 1781.00
Net Pay: Rs. 47191.00
From India, Faridabad
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Dear Rahul,
Your CTC is Rs. 52,000. You cannot get the exact net salary by simply calculating (Rs. 52,000/31 * 30.5 = Rs. 51,161) - this is not the correct method. Is 40% of the Basic pay - Rs. 20,465 fixed or calculated based on attendance?
Please compute all your fixed components according to your attendance:
Fixed Basic / 31 * 30.5
Fixed HRA / 31 * 30.5
Fixed Conveyance / 31 * 30.5
Fixed Tax FBP / 31 * 30.5
Fixed Other Allowances / 31 * 30.5
Deductions:
- Lab Fund
- PF (it should be Rs. 1,800 and not Rs. 1,771 since your Basic is above Rs. 15,000) - please verify this with the accounting department.
Gross - Total of calculated Basic, HRA, Conveyance, Tax FBP, and other allowances.
Deductions - PF and Lab Fund.
Net Pay - Gross - Deductions.
Regards,
Sanjukta
From India, Mumbai
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10Your CTC is Rs. 52,000. You cannot get the exact net salary by simply calculating (Rs. 52,000/31 * 30.5 = Rs. 51,161) - this is not the correct method. Is 40% of the Basic pay - Rs. 20,465 fixed or calculated based on attendance?
Please compute all your fixed components according to your attendance:
Fixed Basic / 31 * 30.5
Fixed HRA / 31 * 30.5
Fixed Conveyance / 31 * 30.5
Fixed Tax FBP / 31 * 30.5
Fixed Other Allowances / 31 * 30.5
Deductions:
- Lab Fund
- PF (it should be Rs. 1,800 and not Rs. 1,771 since your Basic is above Rs. 15,000) - please verify this with the accounting department.
Gross - Total of calculated Basic, HRA, Conveyance, Tax FBP, and other allowances.
Deductions - PF and Lab Fund.
Net Pay - Gross - Deductions.
Regards,
Sanjukta
From India, Mumbai
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Thanks for your reply, Sanjukta. Well, all the figures I have mentioned are according to my pay stub and calculated as per 30.5 days. I have mentioned them as they are.
520000/31 = 1677.41 (Salary of 1 day) My loss of pay is .50 - Total Number of days present - 30.5*1677.41 = 51161.00. The reason for confusion is that some of the figures, such as Employers' contribution to PF, are not mentioned in my salary.
(Earnings) (Deductions)
BASIC 20465.00 (for 30.5 days) PF 1771.00
LABOUR WELFARE FUND 10.00
HRA 10232.00 (50% of Basic)
CONVEYANCE 787.00 (for 30.5 Days out of 800)
TAXABLE FBP 10478.00 (for 30.5 days out of 10650)
OTHER ALLOWANCE 7010.00 (for 30.5 days out of 7125) (Confusion) How is this amount calculated?
Total Earnings: Rs. 48972.00 - Total Deductions: Rs. 1781.00
Except for all these figures, nothing else has been mentioned.
From India, Faridabad
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520000/31 = 1677.41 (Salary of 1 day) My loss of pay is .50 - Total Number of days present - 30.5*1677.41 = 51161.00. The reason for confusion is that some of the figures, such as Employers' contribution to PF, are not mentioned in my salary.
(Earnings) (Deductions)
BASIC 20465.00 (for 30.5 days) PF 1771.00
LABOUR WELFARE FUND 10.00
HRA 10232.00 (50% of Basic)
CONVEYANCE 787.00 (for 30.5 Days out of 800)
TAXABLE FBP 10478.00 (for 30.5 days out of 10650)
OTHER ALLOWANCE 7010.00 (for 30.5 days out of 7125) (Confusion) How is this amount calculated?
Total Earnings: Rs. 48972.00 - Total Deductions: Rs. 1781.00
Except for all these figures, nothing else has been mentioned.
From India, Faridabad
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Sorry, I hit enter without completing it.
Thanks for your reply, Sanjukta. All the figures I have mentioned are according to my pay stub and calculated based on 30.5 days. I have mentioned them as they are.
520000/31 = 1677.41 (Salary for 1 day)
My loss of pay is .50 - Total number of days present - 30.5 * 1677.41 = 51161.00
The reason for confusion is that some figures, such as employers' contributions like PF, are not mentioned in my salary details.
(Earnings) (Deductions)
BASIC 20465.00 (for 30.5 days) PF ------------------------ 1771.00
HRA 10232.00 (50% of Basic) LABOUR WELFARE FUND ---------- 10.00
CONVEYANCE 787.00 (for 30.5 days out of 800)
TAXABLE FBP 10478.00 (for 30.5 days out of 10650)
OTHER ALLOWANCE 7010.00 (for 30.5 days out of 7125) (Confusion) how is this amount calculated?
Total Earnings: Rs. 48972.00 - Total Deductions: Rs. 1781.00
Take Home: 47191.00
Except for these figures, nothing else has been mentioned. I contribute 400 for medical (not mentioned in the slip) and employers' PF contribution (not mentioned).
My questions:
1) How much is my employer's contribution (as it is not mentioned in the payslip) in PF: 1800 or 1171 (same as my share in PF)?
2) What other items are included in other allowances and how are they calculated?
3) Is there a possibility that my employer is still contributing 780 even after reaching the ceiling limit of 15000?
From India, Faridabad
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Thanks for your reply, Sanjukta. All the figures I have mentioned are according to my pay stub and calculated based on 30.5 days. I have mentioned them as they are.
520000/31 = 1677.41 (Salary for 1 day)
My loss of pay is .50 - Total number of days present - 30.5 * 1677.41 = 51161.00
The reason for confusion is that some figures, such as employers' contributions like PF, are not mentioned in my salary details.
(Earnings) (Deductions)
BASIC 20465.00 (for 30.5 days) PF ------------------------ 1771.00
HRA 10232.00 (50% of Basic) LABOUR WELFARE FUND ---------- 10.00
CONVEYANCE 787.00 (for 30.5 days out of 800)
TAXABLE FBP 10478.00 (for 30.5 days out of 10650)
OTHER ALLOWANCE 7010.00 (for 30.5 days out of 7125) (Confusion) how is this amount calculated?
Total Earnings: Rs. 48972.00 - Total Deductions: Rs. 1781.00
Take Home: 47191.00
Except for these figures, nothing else has been mentioned. I contribute 400 for medical (not mentioned in the slip) and employers' PF contribution (not mentioned).
My questions:
1) How much is my employer's contribution (as it is not mentioned in the payslip) in PF: 1800 or 1171 (same as my share in PF)?
2) What other items are included in other allowances and how are they calculated?
3) Is there a possibility that my employer is still contributing 780 even after reaching the ceiling limit of 15000?
From India, Faridabad
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My Answers:
1) How much is my employer contribution (as it is not mentioned in payslip) in PF 1800 or 1171 (same as my share in PF) ???????
For more details on this, please check this site - Basics of Employee Provident Fund: EPF, EPS, EDLIS | Be Money Aware Blog
And did you get the amount - 1171?
2) What other things are included in other allowance and how is it calculated?
Fixed Other Allowance is 7125, (7125/31*30.5 = 7010)
3) Is there any possibility that my employer is still contributing 780 even after the ceiling limit of 15000?
Of course, if the employer is deducting from you, then the employer is also contributing the same to your PF account only.
Employers' PF contribution amount is never shown on a payslip.
You can ask for the PF statement from the company; usually, the company gives it to the employee after every quarter, but once they receive the acknowledgment from the government.
You must be knowing about your PF account; if not, it is mentioned on the salary slip; else you can ask from the accounts/admin departments.
And you can check your PF account online also.
-- Medical Contributions
The amount of 400, I assume that the company has a contract with an outside medical Insurance co.
In that case, if it is paid from your salary, then it can be shown on the salary slip under deductions.
Hope this has cleared your doubts.
Regards,
Sanjukta
From India, Mumbai
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1) How much is my employer contribution (as it is not mentioned in payslip) in PF 1800 or 1171 (same as my share in PF) ???????
For more details on this, please check this site - Basics of Employee Provident Fund: EPF, EPS, EDLIS | Be Money Aware Blog
And did you get the amount - 1171?
2) What other things are included in other allowance and how is it calculated?
Fixed Other Allowance is 7125, (7125/31*30.5 = 7010)
3) Is there any possibility that my employer is still contributing 780 even after the ceiling limit of 15000?
Of course, if the employer is deducting from you, then the employer is also contributing the same to your PF account only.
Employers' PF contribution amount is never shown on a payslip.
You can ask for the PF statement from the company; usually, the company gives it to the employee after every quarter, but once they receive the acknowledgment from the government.
You must be knowing about your PF account; if not, it is mentioned on the salary slip; else you can ask from the accounts/admin departments.
And you can check your PF account online also.
-- Medical Contributions
The amount of 400, I assume that the company has a contract with an outside medical Insurance co.
In that case, if it is paid from your salary, then it can be shown on the salary slip under deductions.
Hope this has cleared your doubts.
Regards,
Sanjukta
From India, Mumbai
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Sanjukta,
For doubt 1 @ PF,
1. As PF is capped at Rs. 1800, 0.5 absent days' effect is given on Rs. 1800 and not on Basic Rs. 20465. This method is followed for providing pro-rata effect (calculating actual based on attendance) uniformly on all earnings and deductions.
2. Also, the pro-rata effect applied to all the employees should be uniform. If an employee's Basic is Rs. 10,000 and the employee is absent for 0.5 days, the calculations would be Basic - 9839, PF - 1181. There must be identical treatment for 0.5 absenteeism for employees with Basic more than Rs. 15000 and PF is capped at Rs. 1800.
3. If an employee joins on the 15th of a month with Basic Rs. 30,000. In this scenario, Basic paid will be Rs. 15,000 and PF should be Rs. 900 (not Rs. 1800). This scenario can also be applied if an employee is separated on the 15th of a month.
From India, Mumbai
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For doubt 1 @ PF,
1. As PF is capped at Rs. 1800, 0.5 absent days' effect is given on Rs. 1800 and not on Basic Rs. 20465. This method is followed for providing pro-rata effect (calculating actual based on attendance) uniformly on all earnings and deductions.
2. Also, the pro-rata effect applied to all the employees should be uniform. If an employee's Basic is Rs. 10,000 and the employee is absent for 0.5 days, the calculations would be Basic - 9839, PF - 1181. There must be identical treatment for 0.5 absenteeism for employees with Basic more than Rs. 15000 and PF is capped at Rs. 1800.
3. If an employee joins on the 15th of a month with Basic Rs. 30,000. In this scenario, Basic paid will be Rs. 15,000 and PF should be Rs. 900 (not Rs. 1800). This scenario can also be applied if an employee is separated on the 15th of a month.
From India, Mumbai
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Well, after a few calculations, I got the exact figures. All this confusion was created by amounts that are now shown in the salary slip.
To calculate with LOP, here is a simple formula: (Amount X Number of days employee present divided by total number of days) 20800 x 30.5 / 31 (Here the month is of 31 days and LOP is 0.5) = 20464.51 rounded off to 20465.00 OR 52000 x 30.5 / 31 = 51161.29 x 40% basic = 20464.51 (20465)
Here is the salary calculation with zero loss of pay:
Gross - 52000.00
BASIC - 20800.00 PF - 1800
HRA - 10400.00 Labour Welfare Fund - 10.00
CONVEYANCE - 1600.00 (As revised in 2015, earlier it was 800)
TAXABLE FBP - 10650.00
OTHER ALLOWANCE - 5825.00
These are the figures that were not mentioned in the salary slip:
Employer PF Contribution - 1800.00
Medical - 425.00
Parental Insurance - 500.00
Other allowance - 20800 + 1400 + 1600 + 10650 Minus (-) 52000.00 = 8550
8550 (Minus) - 1800 + 425 + 500 = 5825
Thanks,
Rahul
From India, Faridabad
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To calculate with LOP, here is a simple formula: (Amount X Number of days employee present divided by total number of days) 20800 x 30.5 / 31 (Here the month is of 31 days and LOP is 0.5) = 20464.51 rounded off to 20465.00 OR 52000 x 30.5 / 31 = 51161.29 x 40% basic = 20464.51 (20465)
Here is the salary calculation with zero loss of pay:
Gross - 52000.00
BASIC - 20800.00 PF - 1800
HRA - 10400.00 Labour Welfare Fund - 10.00
CONVEYANCE - 1600.00 (As revised in 2015, earlier it was 800)
TAXABLE FBP - 10650.00
OTHER ALLOWANCE - 5825.00
These are the figures that were not mentioned in the salary slip:
Employer PF Contribution - 1800.00
Medical - 425.00
Parental Insurance - 500.00
Other allowance - 20800 + 1400 + 1600 + 10650 Minus (-) 52000.00 = 8550
8550 (Minus) - 1800 + 425 + 500 = 5825
Thanks,
Rahul
From India, Faridabad
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