Mahr Started The Discussion:
The Provident Fund contribution is employee's 12% of his/her basic salary. The employer also has to contribute their part for the employee provident fund.
For Provident Fund Calculation:
The maximum limit for the PF calculation would be 6500 on to an employee's basic. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.
A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account
PF admin charge: Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge:Employer has to pay 0.01% of basic
Total additional percentage employer has to pay: 1.61% of basic
So payment for employer would be 13.61% of basic
Payment for employee would be 12% of basic
Employee's payment of 12% of the basic completely goes to the PF account.
Employer's Payment of 8.33% goes to Pension fund and 3.67% goes to PF fund.
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> basic salary for employer Location-India-Bangalore pension fund pf account pf fund provident fund provident fund calculation Complete List Of Categories
Interesting Relevant Discussions