How the PF will be calculated in below case? - it organization
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How the PF will be calculated in below case?

PrashantBoss Started The Discussion:

Hello Friends,

I would really appreciate if you help me to resolve my queries.

I was working with an IT organization for exact 2 years and I have resigned in May 2012. I opted for PF option and 12% of my basic salary and same amount as employer's contribution was deducted as PF contributions.

For April' 2010 to April 2011,
PF Deduction = 1600.00 (Employee's contribution)

For April' 2011 to April 2012,
PF Deduction = 2076.00 (Employee's contribution)

While reading through some articles on the net, I came across that Employer's contribution is bifurcated into sub parts.

E.g. For April' 2010 to April 2011,

My Contribution P/M = 12% of Basic 1600
Company's Contribution P/M = 12% of Basic = 1600
Employer’s contribution to EPS = 8.33% of Basic = 1110.64

This 1110.64 is higher than the max limit of Rs 541/month and hence
Employer’s contribution to EPS = 541

Therefore,
My Contribution P/M = 12% of Basic = 1600
Employer contribution to PF = 1600-541 = 1058.96

So Total PF contribution to PF account per month = 2658.92 (i.e. 1600 + 1058.96)

1. Is the above method is correct to calculate my PF contribution per month?2. If yes, then employer's contribution is less than mine which is not correct.
3. In my company, employer's PF contribution was already included as a part of CTC i.e. 12% from employer was already paid to me, so I was contributing almost 24% from my salary. Since NOW I HAVE SUBMITTED THE WITHDRAWAL request of my PF, I should get those 24% monthly contribution back, but per above method, I am not getting it, correct
4. If my calculation is wrong, please send me the correct calculation and total amount I would receive as withdrawal.

Also, it would be great if you can let me know as how much time it would take if withdrawal from was submitted on 14th May 2012 and PF deduction was started on 1st April, 2010.

Thanks, Prashant

moovendrapandi - Contributing Member
Hi Prashant,

Greetings !!!

As per your calculation your absolutely correct.

In Apr 10 to Apr 11 your will receive your amount as per your deduction i.e. Employee's 12% & Employer's 12%.

The same will get in the next year as well. In the receiving amount there is no any doubt you will get 24% per year.

Apart form this calculation part it is a matter of PF and Pension. It means when employees EPF deduction is 12 % then the same will be from employer side but there is bifurcation in that, it is out of 12 % from employer 3.67 % will PF and 8.33% will your Pension. If you calculate both automatically it will be 12%.

Pls be free. you will get your all amount

Regards,

Ashiwn.

9921648385.

khafeeman - 
Dear Prashant,

Have a nice day !!

As per your calculation your absolutely correct.

In Apr 10 to Apr 11 will receive your amount as per your deduction i.e. Employee\'s 12% & Employer\'s 12% on the basic sal..

The same will get in the next year as well. In the receiving amount, there is no any confusion you will get 24% per year with interest i. e. 9.5% for the year 2009 - 10 & 8.5% for 11 - 12 year.

Apart form this calculation part it is a matter of PF and Pension. It means when employees EPF deduction is 12 % then the same will be from employer side but there is bifurcation in that, it is out of 12 % from employer 3.67 % will PF and 8.33% will your Pension. If you calculate both automatically it will be 12%.

Pls feel free. you will get 24% + interest your all amount for your service period

Regards,

Dear Khafeeman & Moovendrapandi,

Thank you very much for your valuable inputs!!

I was confused because of following reasons,

1. I assumed that NOT the total 12% amount is paid by emplyer and therefore company's contributions is less than mine which take the total figure down.

2. So with above calculation I counted total contribution as 1600 + 1058, which actually should be 1600 + 1600 for me when it comes to withdrawl.

3. Now per your suggestions, I will get 3200/- * 12 months + rate of interest for respective year.

Thank you very much again and keep sharing your usefull knowledge!!

Thanks, Prashant

Dear Bhuvan,

I would not be a good person to answer your queries as I have recently joined this forum; I am as new as you are:). But dont worry, citeHR experts will shortly answer your queury.

It will be a new learning for me too!!

Thanks, Prashant

Dear Mr.Prashant,

You are saying that max limit for EPS is 541 and u are deducting the same from 12% basic.
But my doubt is max limit for PF is 780 from employer side and employee side. But you are contributing more than that. So may be employer is giving to EPS is more than 541 (i.e. 8.33% of ur basic).

ur Contribution P/M = 12% of Basic = 1600
Employer’s contribution to EPS = 8.33% of Basic = 1110.64
Employer's contribution to EPF = 3.67% of basic = 490

so total contribution to EPF is 1600+490 =2090


Thats why u r not getting the accepting amount. I don't know is it correct r not.

Seniors plz correct me if i am wrong...


Thanks & Regards,

Meghana

Dear Mr. Prashant,

I would like to clear one thing that EPF ceiling is Rs. 6500/- and deduction is 780/- whereas EPF contibution from employer side is maximum Rs. 780/- (239 +541) But in your case i think your Comapany has taken permission from EPFO with your consent to make deductions /contibutions on Basic above 6500/- unde para 26.

I am briefing your contribution details, plz. see carefully.

Basic Sal. Emp. Share Er's sahre Pen. Fund
2010-11
13335 1600 1059 541

2011-12

17300 2076 1535 541


Kindly multiplie above figures *12 but ensure interest is given on EPF contributions only. Pension fund is excluded from interest.

Thanks,

Mahender Rana

Dear sir, Should EPS contribution not exceed 541? Is there any exception to deduct more than that like EPF...? Thanks & Regards, Meghana

MRIEHS - 
Dear All,

As for as my understanding, for ex. if ones basic is Rs.10,000 then the pf amount for employees contribution is Rs.1200(both epf and eps-12% of basic) and employer's would be Rs.780(both epf and eps accounted to 12% of minimun basic Rs.6500).

Am i correct. kindly clarify

Thanks

bijay_majumdar - Contributing Member
Hi Prashant, attached format was contributed by one of our own sharing members of this forum only. Pls Go through it, may resolve your problem. Thanks Bijay


Attached FilesProvided by community member bijay_majumdar. Join us to learn and grow with your peers.
File Type: xls PF & ESIC_CALCULATION.xls (46.0 KB, 116 views)
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