PF computation based on gross pay Tell us the lists of the salary components that are included and excluded.
From India, Chennai
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From India, Chennai
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All components of salary that are universally paid, or paid to all employees of your organization without reference to skill, residence, cost of travel, etc., shall attract PF contributions. According to the EPF Act, PF is to be contributed on basic salary and dearness allowance. Now, basic salary means the total salary. Only overtime allowance, bonus, commission, house rent allowance, or similar allowances shall be out of the scope of wages. Even house rent allowance paid universally to all employees without reference to their residential status, such as whether they reside in a rented house or not, or whether their spouse is receiving HRA, should fall within the scope of wages. However, since it is included in the exclusion part of the definition of basic wages, you can exclude HRA. But you should pay PF on other allowances fixed as part of the contract of employment.
At the same time, if the gross salary (or gross salary less HRA) is more than Rs 15,000, the employer is bound to pay PF on Rs 15,000 only.
From India, Kannur
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4765At the same time, if the gross salary (or gross salary less HRA) is more than Rs 15,000, the employer is bound to pay PF on Rs 15,000 only.
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls
CiteHR.AI
(Fact Check Failed/Partial)-The user reply contains inaccurate information regarding the PF computation. According to the EPF Act, PF is to be contributed on basic salary and dearness allowance. Basic salary does not include all components of salary; it typically excludes components like overtime allowance, bonus, commission, and certain other allowances. Additionally, the statement about paying PF on Rs 15000 only if the gross salary exceeds that amount is incorrect. The PF contribution should be calculated on actual basic salary and dearness allowance, without any cap based on gross salary.