Hi Seniors,
I have a doubt based on the calculation of interest rate 8.65% per month contribution:
- Employee Share PF Contribution: Rs. 672
- Employer Share PF Contribution: Rs. 206
- Pension Contribution: Rs. 466
Even after 5 months of contribution, I received the following interest amounts updated up to 31.03.2017:
- Employee Share Interest amount: Rs. 48
- Employer Share Interest amount: Rs. 15
- Interest Amount for Pension Contribution: Rs. 0
Why is there no interest for the Pension Contribution? Kindly guide me on calculating the Interest Amount.
Thank you.
From India, Chennai
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8I have a doubt based on the calculation of interest rate 8.65% per month contribution:
- Employee Share PF Contribution: Rs. 672
- Employer Share PF Contribution: Rs. 206
- Pension Contribution: Rs. 466
Even after 5 months of contribution, I received the following interest amounts updated up to 31.03.2017:
- Employee Share Interest amount: Rs. 48
- Employer Share Interest amount: Rs. 15
- Interest Amount for Pension Contribution: Rs. 0
Why is there no interest for the Pension Contribution? Kindly guide me on calculating the Interest Amount.
Thank you.
From India, Chennai
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Dear Ranjeetha MP,
Employer and employee shares in PF belong to the member. Hence, when it is deposited with EPFO, they have to give interest to members. However, members have no claim on the pension fund as it is EPFO's property. Members can claim either a pension or withdrawal benefit, as the case may be. It has no connection with the deposit but depends upon the service, last drawn average salary, etc.
Abbas.P.S
From India, Bangalore
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Employer and employee shares in PF belong to the member. Hence, when it is deposited with EPFO, they have to give interest to members. However, members have no claim on the pension fund as it is EPFO's property. Members can claim either a pension or withdrawal benefit, as the case may be. It has no connection with the deposit but depends upon the service, last drawn average salary, etc.
Abbas.P.S
From India, Bangalore
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Dear Ranjeetha, The interest calculation is shown in the attached sheet, as per details provided by you. Mr. Abbas has already intimated you other details. Thanks, Vidyadhar Bhat
From India, Pune
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From India, Pune
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Dear Sir, Thank you so much Abbas Sir and Vidyadhar Bhat Sir for your explanation through Excel sheet. Thanks, Ranjeetha.MP
From India, Chennai
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From India, Chennai
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Dear Sir, Thank you so much Abbas Sir and Vidyadhar Bhat Sir for your explanation through Excel sheet. Thanks
From India, Chennai
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From India, Chennai
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Dearsir My name Anit kumar s/o Ratan singh My company. India Yamaha motor surajpur greater noida up My UAN. 100978944644 MY FATHER’S NAME MYSTIC SHWO. Ravindra PLEAS WRITE HELP
From India, Delhi
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From India, Delhi
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In the EPF calculator, we have used the 1st method for computing the employee and the employer contribution. Just to understand our methodology, let us take the following case:
1. Employees' Basic Pay + DA: Rs 25000
2. Employee contribution towards EPF: 12%*25000 = Rs 3000
3. Employer contribution towards EPF = 3.67% of 25000 = 3.67%*25000 = Rs 917.50.....(A)
4. Employer contribution in Employee Pension Scheme (EPS): 8.33% * 15000 = Rs 2082.50 .....(I)
ID – Paytek, a payroll software designed by experts keeping in mind the essential needs of organizations is a very powerful HR management tool that takes care of all core HR activities in an organization.
Regards
Abid
https://www.idbssoftware.com/hr-payroll-software.php
From India, Bengaluru
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1. Employees' Basic Pay + DA: Rs 25000
2. Employee contribution towards EPF: 12%*25000 = Rs 3000
3. Employer contribution towards EPF = 3.67% of 25000 = 3.67%*25000 = Rs 917.50.....(A)
4. Employer contribution in Employee Pension Scheme (EPS): 8.33% * 15000 = Rs 2082.50 .....(I)
ID – Paytek, a payroll software designed by experts keeping in mind the essential needs of organizations is a very powerful HR management tool that takes care of all core HR activities in an organization.
Regards
Abid
https://www.idbssoftware.com/hr-payroll-software.php
From India, Bengaluru
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Dear Sir,
There are a few corrections needed regarding the contribution. EPS contribution should be restricted to Rs. 1250/- (Max. wages Rs. 15000), and the difference amount will go towards the Company's contribution. In the specimen, you have mentioned EPS wages as 15000, but the calculation is based on 25000/-, resulting in Rs. 2082.50.
All other details will be entered into the Excel file for EPF interest calculation.
Thanks,
Vidyadhar Bhat
From India, Pune
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There are a few corrections needed regarding the contribution. EPS contribution should be restricted to Rs. 1250/- (Max. wages Rs. 15000), and the difference amount will go towards the Company's contribution. In the specimen, you have mentioned EPS wages as 15000, but the calculation is based on 25000/-, resulting in Rs. 2082.50.
All other details will be entered into the Excel file for EPF interest calculation.
Thanks,
Vidyadhar Bhat
From India, Pune
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For calculation of contribution to ESI, we should use the ROUNDUP function in Excel; otherwise, it will not tally with amounts shown by ESI System. =ROUNDUP(gross_salary*1.75%, 0).
There is a problem with the Employer's contribution:
After uploading the Excel sheet, the system displays the total contribution by the employee and employer. It is easy to check the employee's contribution. But there is no way of matching employee-wise contributions made by the employer before payment of the challan. It is only after payment that I can download the details.
Any solution to this will be appreciated.
From India, Bidar
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There is a problem with the Employer's contribution:
After uploading the Excel sheet, the system displays the total contribution by the employee and employer. It is easy to check the employee's contribution. But there is no way of matching employee-wise contributions made by the employer before payment of the challan. It is only after payment that I can download the details.
Any solution to this will be appreciated.
From India, Bidar
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Dear [Recipient],
Please note that the Employer Contribution is payable on Gross ESI Wages (inclusive of Gross Wages of all ESI Covered Employees). Before uploading the data in the portal, calculate the approximate Employer Share of Contribution at 4.75%. The portal is programmed to calculate accurately. You have to round off the Employee & Employer Contribution to the nearest Rupee before uploading the data.
Thank you.
Best regards,
[Your Name]
From India, New Delhi
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Please note that the Employer Contribution is payable on Gross ESI Wages (inclusive of Gross Wages of all ESI Covered Employees). Before uploading the data in the portal, calculate the approximate Employer Share of Contribution at 4.75%. The portal is programmed to calculate accurately. You have to round off the Employee & Employer Contribution to the nearest Rupee before uploading the data.
Thank you.
Best regards,
[Your Name]
From India, New Delhi
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