EPF calculation of Employees who earn more than 6500/- per month

jishnuvn Started The Discussion:

If an employee (having EPF benefit) drawing a salary of 10,000 (Basic + DA) , then what is the calculation for monthly remittance

1) Employee Contribution (12% of 10000) : 1,200.00
2) Employer Contribution- Pension (8.33 %) : 541.00 (limited to 6500 )
3) Employer Contribution-PF (balance ) : 659.00 ( 1200 - 541 )

TOTAL : 2,400.00


1) Employee Contribution (12% of 10000) : 1,200.00
2) Employer Contribution -Pension (8.33 %) : 541.00 (limited to 6500 )
3) Employer Contribution - PF (3.67% ) : 239.00 (limited to 6500 )

TOTAL : 1,980.00

Please advise ...

malikjs -  Member Since: Nov 2007
you can do both ways.because if your basic is more than 6500 ,it is choice of employer to deduct PF or not .he can only deduct on 6500 or he can pay his share on 6500 or he can pay it on full.
j s malik

jishnuvn -  Member Since: Jan 2009
Thanks for your reply Malik sir

One more doubt in this case . Shall I calculate the above problem in the following manner

1) Employee Contribution (12% of 10000 (basic+da) or 12% of 6500 which ever is less ) : 780.00
2) Employer Contribution- Pension (8.33 %) : 541.00 (limited to 6500 )
3) Employer Contribution - PF (3.67% ) : 239.00 (limited to 6500 )

TOTAL : 1,560.00

sonusharma123 -  Member Since: May 2008
Hi ,

it depend upon company policy if they want to deduct pf on the whole basic payable what he is getting that month than first one is applicable because employer contribution has limit of 6500
and in second case you are putting celing of 6500 on employee contribution also than in employer ceiling is alredy their for 6500 thnan deduct from (12%-8.33%) it will give you 3.67%

sahoo_sukumar1982 -  Member Since: Nov 2008
In my point of view i agree with mallikjee statements means that it is always depends on employers but according to rule 6500 is limit of pf. after 6500 exampted if employees are agreed to pay pf contribution on exampted salary its no problem

Sukumar sahoo

duke -  Member Since: Jul 2007
According to our statutory auditors, In terms of the EPF Rules, in cases where employees are drawing more than Rs 6500 per month, and do not opt for the PF Scheme, a declaration in the Prescribed form has to be obtained from the Employees.

Kindly ensure compliance before this month end to avoid Audit Qualifications. As per my F&A Manager who is a qualiifed CA. Is there any prescribed Format for the same. Can somebody upload the same, ASAP.

or mail me at


rajjadhav1981 -  Member Since: Mar 2010
Dear Sir, pl guide me pf calculation & how many emplyee are rquired for pf pl sir send me details my following mail id rajjjadhav1981@gmail.com Rajendra

ashishgatate -  Member Since: Mar 2009
I have a doubt about Arrear Calculations for PF. Pls. clarify the proper method of deduction in following case where PF Basic Salary restricted To Rs. 6500.00 -
1) In the month of Sept 2010 Employee Basic Salary - 6000.00
2) Employee PF Deducted In Sept 2010 - Rs. 720.00
3) In The Month Of Oct 2010 Basic Salary Revised w.e.f. Sept 2010 - Rs. 8000.00

In The above given case what would be the deduction amount towards PF -
Basic Salary in Oct 2010 - Rs. 8000.00
Basic Salary Arrear in Oct 2010 - Rs. 2000.00
1) Minimum of (Basic Salary+Basic Salary Arrears, 6500) *12%
= min((8000+2000),6500)*12%
= min(10000,6500)*12%
= 6500*12%
= Rs. 780.00

2) (min(Basic Salary For Oct 2010 Month,6500)*12%)+(min(Revised Basic Salary for Sept 2010,6500)*12% - PF Already Deducted in Sept 2010)
= (6500*12%)+((6500*12%)-720)
= 780+(780-720)
= 780+60
= 840.00
Which one is the correct method?

wsbalaji24 -  Member Since: Sep 2010

we have 75 employees those basic& DA wages is more than Rs.15000/- and we have been paying Pf contribution on entire basic & DA wages.

Now my company is sick condition & we are unable to bear the total cost. so we wanted to reduce PF contribution from the current dedution.

Is there any rule to deduct only on PF celing amount Rs.6500/- after being deducted on Rs.15000/- and also Please suggest how can we have inform to all the employees in regards PF deduction only on celing amount.

wait for valuable suggestion.

Kasim& Balaji


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