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.
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