Dear Respected All,
Please let me know if an employee has a basic salary of 20000 and as per the PF Act, the ceiling is 15000. My question is, if in a particular month of 30 days, the employee was absent for 2 days, then what will be the calculation to deduct PF? If I take the basic as 20000/30*28=18666.66, then what should the PF deduction be, 1800 or 15000/30*28=14000, resulting in a PF deduction of 1680? So, which calculation should I use?
I hope you understand my question.
Regards,
Bharat
From India, Vapi
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3Please let me know if an employee has a basic salary of 20000 and as per the PF Act, the ceiling is 15000. My question is, if in a particular month of 30 days, the employee was absent for 2 days, then what will be the calculation to deduct PF? If I take the basic as 20000/30*28=18666.66, then what should the PF deduction be, 1800 or 15000/30*28=14000, resulting in a PF deduction of 1680? So, which calculation should I use?
I hope you understand my question.
Regards,
Bharat
From India, Vapi
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under no work no pay or LOP the calculation would be on 14000 i.e 1680 and NCP days would be 2
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Since the earned Basic ie., Rs. 18,666 is greater than Rs. 15,000 then you need to consider the ceiling limit of Rs. 15,000 as PF Wages and PF deduction will be Rs. 1800.
From India, Chennai
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From India, Chennai
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(Fact Checked)-The user reply is correct. (1 Acknowledge point)
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as the absent is declared, so the calculation would go for 28 days in place of 30 and 2 days NCP ( non contributory period) would be reflected in ECR
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(Fact Check Failed/Partial)-The user reply is incorrect. The calculation for PF deduction should be based on the actual basic salary, which is INR 18,666.67 (20000/30*28), not on the PF ceiling limit. Therefore, PF deduction should be calculated on INR 18,666.67.
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Dear Sharma ji, Noted but my question is what will be PF contribution (Employee Account @12%) as 1800 or 1680 My main focus is that. Regards Bharat Sukhwal
From India, Vapi
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From India, Vapi
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(Fact Check Failed/Partial)-The correct PF deduction calculation would be 1680 as the PF contribution is calculated on the actual basic salary, not the statutory cap. Therefore, the calculation should be based on the actual basic salary of 18666.66. Thank you for your query.
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1800 is for full 30 days or 31 days , if 2 days NCP is counted then obviously it will be 1680
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(Fact Checked)-1800 is for full 30 days or 31 days. If 2 days are NCP, the correct PF deduction will be based on the reduced salary due to absences. (1 Acknowledge point)
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Dear Mr. Bharat, The EPF is related to wages earned ( amount). If member is earning more than 15 K, max 15K PF will be deducted i.e. Rs 1800/-
From India, Pune
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From India, Pune
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(Fact Check Failed/Partial)-The user's reply is incorrect. As per the EPF Act, the contribution is calculated on actual basic wages, not capped at Rs 15,000. The correct PF deduction in this scenario should be based on the actual basic earned, which is Rs 18,666.66, resulting in a PF deduction of Rs 2,240.
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Dear All Pls clarify for PF contribution weather month shall by devided by 26 days basis or calander month basis Regds Amit
From India, Jaipur
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From India, Jaipur
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(Fact Check Failed/Partial)-The user's reply is incorrect. The calculation for PF contribution should be based on calendar month basis, not a 26-day basis.
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PF is to be calculated on pf wages actually paid, and not payable.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-PF must be calculated on actual wages paid, not payable. This is in line with PF regulations to ensure accurate contributions. (1 Acknowledge point)
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Dear Mr. Amit,
PF should be calculated for monthly earning members based on the days worked in the wage month.
If a member is on a daily wage system, the calculation should be based on the actual working days, excluding holidays in the month.
Thanks,
Vidyadhar Bhat
From India, Pune
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PF should be calculated for monthly earning members based on the days worked in the wage month.
If a member is on a daily wage system, the calculation should be based on the actual working days, excluding holidays in the month.
Thanks,
Vidyadhar Bhat
From India, Pune
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(Fact Check Failed/Partial)-The user reply is incorrect. PF deduction is based on the statutory limit of Rs. 15,000, not the actual salary earned. The correct calculation method should be based on the ceiling of Rs. 15,000.
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(Fact Check Failed/Partial)-The user reply is incorrect. The calculation for PF deduction should be based on the actual basic salary, which is INR 18,666.67 (20000/30*28), resulting in a PF deduction of INR 1,800.