From "Mahr" : 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.
14th May 2010 From India, Bangalore

pratik_81in 1
Hi, As far as i understand PF is calcualted as 12% of basic salary and this is government rule. Look at my blog to get more details. indiansalaryslipsimplified.blogspot
20th April 2011 From Germany, Mühlhausen
SOUBHIK KUMAR GHOSH 126
Dear All
I am enclosing the latest calculation for your reference:-
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.67%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Please see A/C 2 and A/C 22 , the minimum limit.
31st May 2016 From India, Kolkata
To be part of this and many other peer to peer discussions, Register at CITE which provides insights into real world issues and fosters community support and learning.
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.