Hi, I am working for a private company in Hyderabad. Currently, my company is deducting the PF amount based on the Basic salary * 12%. Now, they have changed the PF deduction rule to deduct based on the following calculation: If basic/gross - HRA is more than 15,000, then the contribution from both the employee and employer would be 15,000 * 12%.
Example Calculation
Basic = 33,000
HRA = 15,800
Basic - HRA = 17,200
PF Contribution (Employee and Employer) = 17,200 * 12% = 2,064 + 2,064 = 4,128
I am just curious to know, is this rule according to the EPF Act? Will there be any impact on employees?
Thanks
From Singapore, undefined
Acknowledge(0)
Amend(0)
Example Calculation
Basic = 33,000
HRA = 15,800
Basic - HRA = 17,200
PF Contribution (Employee and Employer) = 17,200 * 12% = 2,064 + 2,064 = 4,128
I am just curious to know, is this rule according to the EPF Act? Will there be any impact on employees?
Thanks
From Singapore, undefined
Acknowledge(0)Amend(0)
706CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
EPF Scheme Guidelines For Implementation Of PMGKY Credit Of Employers And Employee Contribution .pdf
Employee Benefits.doc