15-11-2008, 12:47 PM
|  | | | Join Date: Dec 2006 Location: Hyderabad
Posts: 22
| |  Salary /PF Calculation
Hi,
I would like to know about salary / PF Calculations.
How do we need to calculate salary, Is that 26 days per month / 31 days per month Or average we need to consider 30 days?
What about February month then?
If some employee is on leave then take home will vary based on No of days while calculating the salary.
Request you to share your Knowledge.
I am working for IT Company, Turn over: 60+
Thanks in Advance,
Regards,
Sritha.R |
15-11-2008, 01:51 PM
|  | Board Moderator | | Join Date: Sep 2007 Location: Kannur
Posts: 1,057
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PF is calculated on the actual salary (basic + DA only) paid to the employees. If you have paid salary for 21 days only ( the rest of the days employee was on leave without pay), then that salary will qualify for PF deduction and contribution. If you have paid salary for 30 days that will be the salary for PF. If you pay salary for 28/ 29 days in the month of February, then you need to take that reduced salary for PF also.
Regards,
Madhu.T.K |
15-11-2008, 02:59 PM
| | | | Join Date: Dec 2006 Location: Hyderabad
Posts: 22
| | Sal cal
Thanks Madhu
Its nice to see that you are from ICFAI INC, Is there any hard and fast rule while we calculating the salary. How many days we need to consider?
Warm Regards,
Sritha,R Quote:
Originally Posted by Madhu.T.K  PF is calculated on the actual salary (basic + DA only) paid to the employees. If you have paid salary for 21 days only ( the rest of the days employee was on leave without pay), then that salary will qualify for PF deduction and contribution. If you have paid salary for 30 days that will be the salary for PF. If you pay salary for 28/ 29 days in the month of February, then you need to take that reduced salary for PF also.
Regards,
Madhu.T.K |
Last edited by sritha; 15-11-2008 at 03:59 PM.
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17-11-2008, 09:27 AM
| | Board Moderator | | Join Date: Sep 2007 Location: Kannur
Posts: 1,057
| |
Dear Sritha,
Salary may be calculated on a daily basis, weekly basis, fortnightly basis or monthly basis whereas PF returns are to be filed on monthly basis only.
Regards,
Madhu.T.K |
17-11-2008, 10:18 AM
| | | | Join Date: Oct 2008 Location: Faisalabad, Pakistan
Posts: 15
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Hi sritha,
here is no hard and fast rule for calculation salary at current month days or 26. but auditors object to calculate on 26 as weekly rest days are paid.
jav |
18-11-2008, 12:27 PM
| | | | Join Date: Dec 2007 Location: Ernakulam
Posts: 12
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PF towards salary has to be calculated in 30 days. ie. 365 days / 12 months = 30.416 rounded to 30 days per month.
but in case of Ms. Sritha, if she calculates in 26 days (avoiding weekly off days) there will be a violation of labour rule, that the labour should attain a weekly off.
so all the calculation of EPF and the ESI has to be done in 30 days a month manner.
Regards,
Linnan |
18-11-2008, 01:05 PM
| | | | Join Date: Dec 2006 Location: Hyderabad
Posts: 22
| |
Thank you one and all.
Regards,
Sritha.R |
18-11-2008, 10:08 PM
| | | | Join Date: Nov 2005 Location: Bangalore
Posts: 6
| |
12% equal contribution towards PF from both employer and employee.. PF & Superannuation contribution put together should not exceed 27% of total contribution towards pension..
in PF.. the employer has the flexibility to contribute at 12% of employee's basic or Rs.6500 per employee..now out of the employer's PF contribution, 8.33% of basic/Rs.6500 max is segregated and credited to the pension fund.. due to this fact, depending upon the way the PF fund is managed,company owned/ third party, the encashment amount at the time of separation will vary..
Cheers,
Bala |
18-11-2008, 10:10 PM
| | | | Join Date: Nov 2005 Location: Bangalore
Posts: 6
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btw... there was a news being passed around a little earlier that it's going to be notified in the Gazzette that the maximum ceiling for PF/pension contribution is going to be raised to Rs.10,000... has this been effected? |
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