PF deductions

kalpeshpatel · 04-11-2009, 01:06 PM

Dear As per PF Act

1. PF Deducted (12%) from basic salary of the Employee

2. Principal Employer (Company) Add 12% of basic salary. Company Contribution (12%) devided in two Parts. Many comapanies saw this contribution in overall CTC.

2.1 8.33% in EPS (Emp Pension Scheme)
2.2 3.67% in EPF (Emp Provident Fund)

Note: 8.33% of basic salary subject to maximum of rs.541/- per month is deviated from Compamy's contribution to the EPS 1995.

Total contribution of pf is following for your Knowledge.

PAYMENT OF CONTRIBUTION

A/c – 1 EPF EMPLOYERS 12% + EMPLOYEES 3.67% = 15.67 %
A/c – 2 EPF ADMIN CHARGES 1.10%
A/c – 10 EPS EMPLOYEES 8.33 %
A/c – 21 EDLI 0.50 %
A/c – 22 EDLI ADMIN CHARGES 0.01%

TOTAL = 25.61%

Regards
Kalpesh Patel
Labour Law Consultant
Gujarat

sunita.salunke · 04-11-2009, 02:11 PM

Hi,

we deduct only Employees contribution i.e 12% and the employer contribution is 12%. out of 12%, 8.33% contribution towards pension and remaining is for PF.

Quote:

Originally Posted by hrriba

I want to know regarding PF deductions, on what basis the PF will be deducted.
what is the % of Employer & employee contribution .
Whether both are to be deducted from the salary or not.

Can any one help me out in this , as i have recently entered in to this HR field and i am getting confused while calculating salaries.

I want to learn complete details regardind PF.

zafri iqbal · 04-11-2009, 03:38 PM

wats the diffrence between provident fund and pension fund???and whos paying pension fund???employee or employeer??

Gahelot · 04-11-2009, 04:02 PM

1.maximum limit of pf deduction is 6500/ Basic+DA salery
2. From employee side 12%(A/c-1)
3. From employer side 12% it goes in two part
i 3.67% pf office (A/c-1) total in A/c-1 (15.67%)
ii 8.33% goes to pf office (A/c-10)
4 1.10 admin charge (A/c-2)
5. 0.50% EDLI Charge (A/c-21)
6. 0.01% inspection charge (A/c-22)
Total pf Contribution from employer/employee side is (25.61%)

Pf challan shall be goes in S.B.I Bank Before 15th of Month

Thanks
Regards
Arun Gahelot
HR Executive

ghatge2005 · 04-11-2009, 04:26 PM

Pf is calculated on employee's basic salary/ (basic+f.d.a)
contribution is 12%-12% both collected compulsary from employee & employer respectively.
Emplyee contribution- employee salary, employer's contribution- (8.33%-eps)(3.67%-epf).
It is depsited in local pf office by challens on monthly basis.

Gahelot · 04-11-2009, 04:27 PM

Dear Iqbal
Total pf is 15.67% (12% employee side and 3.67% employer side)
Pension fund is (8.33%) it shall be deduct from employer side
pension shall be paid at the time of (Resign, Death Case, Retirement)
Note- (1) minimum servic shall be 10 year to get pension fund
(2) In case when employee attain the age of 58 year

Thanks
Regards
Arun Gahelot
HR Executive

surender_samant · 04-11-2009, 05:49 PM

Employer may or may not contribute provident fund to employee

divya choubey · 04-11-2009, 06:12 PM

Hi,

Please find some of the attachment for PF and

I have made a mistake in one slide that is of contribution plz correct it....
its like 12% on employee PF account

in employer contribution

13.61 this is divided-
12%of basic paid towards employer PF contri goes in 2 part
a) 8.33% to employer pension a/c
b) 3.67% to employer pf contri a/c

1.61% towards admin charges as under
a) 1.1% of basic to PF admin charges
b) 0.5% to EDLI charges
c) 0.01 to EDLI admin charges

Regards
Divya

abhupathy · 05-11-2009, 09:03 AM

Dear samer abbasi,

Thanks for your useful tips.... Could you please tell me how to collect the PF from the govt ?

prashant_patil · 05-11-2009, 09:46 AM

Hi,

You can use the software "EPF Management Software" from nextechss.com to simplify the calculation and submission of various forms and challan towards the EPFO.
You can download the software from the following link

http://www.nextechss.com/epf30installer.exe