rebeccahr Started The Discussion:
Hi, I would like to clarify the following 1. method of calculating PF 2. Who are the people eligible for deduct PF 3. What could be the exact salary break up if a person monthly salary is Rs10000
Posted 17th November 2007 From United Arab Emirates, Dubai
1) PF is generally 12 % of basic+DA, but sometimes comapnies have fixed amount of PF say 660 or 780.
2)Establishments employing 20 or more persons are required to deduct PF from the salary of employees.
3) The salary breakup for monthly salary (10000) is not fixed. It varies from comapy to comapny. but in general it includes Basic, Conveyance(800), HRA (40% or 50% of Basic), special allowance, medical Allowance, etc..

Hope this answers all your questions
Posted 19th November 2007
Dear All, Please find attached which can help u . Regards Vipin
Posted 26th January 2009 From India, New Delhi
Attached Files
Shared By Cite.Community Member "vipinmanav" For Public Download
File Type: doc benefits_of_PF.doc (47.0 KB, 11072 views)
File Type: xls forms__pf___esic__719(1).xls (29.5 KB, 4403 views)
File Type: doc pf___if_forms_327[1].doc (58.5 KB, 2316 views)
File Type: doc PF_-_DUTIES_OF_EMPLOYER.doc (39.5 KB, 3248 views)
File Type: doc PF_-_EXEMPTIONS.doc (73.5 KB, 3130 views)
i have a querry the pf is calculated as 12% contribution from both employee as well as the employer right? that means the company contributes 12% of the basic salary of the employee separately and not deduct it from employee salary every month right.?
Coz my basic salary was 6500/- and and my company was deducting 24% monthly as PF contribution.and not contributing separately

Kindly guide me on this, my salary was Rs 13000/-,,, basic 6500/-, and monthly deduction was 24% ie 1560/-.(which should have actually been 780/-) kindly calculate my pf amount for one year.
Posted 10th June 2009 From India, Mumbai
Mr. Gaurish

PF Wages is Basic+VDA+FDA+Lunch Allowance etc. Generally 12% of wages wages will be deducted from employees salary and same amount of 12% will be added by the employer.


Basic 6500
Less PF(12% ) 780
Net Salary 5720
Ur PF Contribution 780
Less 8.33% on 6500 541
(To ur Pension Fund) -----
Ur Balance amount in PF 239
Add Employer 12% Contribution 780

So ur PF Contribution is 780/- (12% of 6500/-)+ Employer PF Contribution is 780.
And Our of ur contribution 8.33% of 6500 i.e 541 goes to ur Pension Fund. Rest of ur contribtion i.e, 3.67% (Rs.239)and Employer Contribution to u i.e.12% (780) put together Rs.1019/- goes to ur Provident Fund Account.

I hope ur PF Salary is 13000/- in which Basic is 6500 and u may be paid DA or (VDA + FDA) and Lunch Allowance.

If ur PF Salary is 10000/- ( UR PF deduction is 1200/- and employer PF Contribution is 1200 and out of 2400, Rs. 541 ( 8.33% of Rs.6500) goes to ur pension fund and rest of 1859 goes to ur Provident Fund.

Note: If PF Wage is more than 6500/- an amount of 541 (i.e, 8.33% on 6500) only goes to Pension fund.

If u have any doubts pl provide ur wage components, i will clarify ur doubts.

PB Rama Swaroop
Posted 10th June 2009
Dear Sir I am newly prepare the pf statement how much salary minimum applicable in PF apply in the employee regards Prabhu
Posted 29th March 2010 From India, Madras
Dear Sir,

I would like to know is there any new amendment or notification regarding the change in the pf components. Eg:if an employee has a components of Basic, DA, HRA, Conveyance and Special Allowance. Normally for pf calculation we consider Basic+DA. But now I came to know that if the basic+da is less than 6500.00 then special allowance is also to be considered as pf component and pf should be calculated on Basic+DA+Special allowance.

Kindly clarify the above.


Posted 9th December 2010 From India, Bangalore
Dear Seniors,

Greetings of the Day!!

Hope you all are doing good. This is Kavita and I am working in a software company. My quire is about pension.My quires are as follows:

1. How to get the pension
2. Types of Pension
3. What are the conditions of pensions
4. And how to calculate the pension
5. What is the minimum age and how many years of services required for this.

My humble request to my all seniors please provide the details on the above topics and if you share complete detail on this it will be more appreciable.

Thanks & Regards
Kavita Gupta
Executive - HR
Posted 6th August 2012 From India, Hyderabad
PF- 12% of employer
PF-3.67% of employr
Pension-8.33% of employer
Admin charge-1.1% of employer
Inspection charge-0.005% of employer
EDLI-0.5% of employer

Maximum limit of basic+VDE+DA will be Rs.6500

Posted 4th September 2012 From India, Coimbatore

My name is soumya, please inform me what all forms are related to PF.Like
- Form no. xxx for PF application
- Form for getting co. registered for PF
- Form for transferring PF
- Form for winding up PF a/c.

Please help me with PF forms details.

Posted 15th January 2013 From India, Mumbai
Dear All,

I have a little confusion in the method of calculation of PF
As before 2011 PF calculation was based on 3 coditions that were based on the HR policy of that particular compnay,

As in first condition PF(EE) was being calculated on Basic Payable salary with no ceiling.
In 2nd condition:- PF calculated on the celing Limit of 6500/- ....
And in 3rd condition:- PF will get deducted from those employees account whose basic salary is upto 6500/-

but I have confusion that In condition 2nd and 3rd 6500/- is the ceiling limit of Basic payable wages or basic pension wages.

Kindly help out as I am stuck and because of that not able to get the practice of PF in any case.

Thanks in advance
Nupur Shukla
Posted 22nd July 2013 From India, Noida

My first question is, is it possible and right that employer has choice not to contribute PF against employee?

The second question and the reason I asked above is, employer is asking to either deduct 25% of my current basic salary or asking to choose reducing the basic salary and then 25% on it. However, in both cases employer will not contribute.

Is this correct?

Posted 29th January 2016 From India, Bengaluru
Hi Rebecca/ Saraswathi

You should refer to this article:
Provident Fund - What you need to know

It pretty much covers all the questions that you may have regarding Provident Fund.

Another pretty useful article is the one on how to register for PF.

Registering for Provident Fund - Step by Step guide

I've also attached the PDFs of these articles to this email.
Posted 29th January 2016 From India, Mumbai
Attached Files
Shared By Cite.Community Member "Allan Fernandes" For Public Download
File Type: pdf PF Registration Procedure_Quikchex.pdf (589.7 KB, 46 views)
File Type: pdf Everything PF Related.pdf (698.1 KB, 47 views)
Dear Seniors, Greetings of the Day!! I am newly prepare the pf statement. sir tell me how to calculate with one suitable example . also tell me how to calculate DA Special Allownces , HRA etc
Posted 16th July 2016 From India, Miraj


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