Simran420
2

Dear All Kindly let me know that PF deduction is 12% on basic. But how much of this 12% is going in PF account and how much % is going in pension account.
From India
jkct15
184

Hi
The following will help you to understand it in a better way
There are three accounts in the calculation of PF
1.EPF-The Employees' Provident Fund Scheme
2.EPS-The Employees' Pension Scheme
3.EDLI-Employees' Deposit Linked Insurance Scheme
For the calculation of EPF-12% of Employee contribution is added and 3.67% from employer's contribution
For the calculation of EPS- 8.33% will go for Pension from Employer contribution and
For EDLI-1.61% from Employer contribution
1.1% Admin charges For EPS and EPF
0.5% EDLI Premium
0.01% Admin charges for EDLI


Simran420
2

Dear
First of all thanks for sparing time to reply my query. But still my answer is not cleared. PF share of EMployee and employer is same i.e. 12% of basic. but according to your employer share is 13.61%.
Now my question is employer is paying much then employee.
second EPF, EPS and EDLI charges will be deducted from which account : Employer or Employee.
After leaving how much % we will get from PF account as 24% deposit in PF account monthly.
For more clarification you can also contact to me 9781001077.

From India
sudip.dey
1

Dear Simran420,
u r correct that the contribution amount of both the employee and employer is 12% on PF. however an amount of 13.61% is deducted from the employees salary.
So this additional 1.61% is the administration charge bourn by employee only. But your final remuneration will be based upon your 12% contribution.

From India, Mumbai
abbasiti
517

No employee has to contribute 12% only. Employee will pay 13.61% to PF. If there is exempted Trust, percentage of employer share will differ. Abbas.P.S
From India, Bangalore
abbasiti
517

Dear friends,
I am unable to edit the above posting. Please read it as below. . . . .
No, the employee has to contribute 12% only. Employer will pay 13.61% to PF. If there is exempted Trust, percentage of employer share will differ. Abbas.P.S

From India, Bangalore
Anonymous
Hi Abbas ,
Thanks for the PF breakup details. Have a quick query, is the 1.61% to be borne by the Employee or by the Employer. As per the current Salary structure prevailing in the companies , the Employer contribution as well as Employee contribution is deducted from CTC . Does that mean the the part of Employer contribution i.e . 1.61% is also to be deducted from Employee CTC.

From India, New Delhi
CA Darshan Balai
27

Simran,
Here is the clarification to your query
1. Employee's Contribution - 12% of the (Basic +DA) subject to maximum of Rs.6500 Salary amount - This amount is also allowable as deduction from Gross Total Income u/s80C of Income Tax
2. Employer's Contribution - 13.61% The breakup as follows -
3.67% - PF Account
8.33% - Pension Account
0.50% - Employees Deposit Linked Insurance Account (EDLI)
1.11% - Administrative Charges of managing these accounts.
So eventually we pay 15.67% to PF Account
Hope that helps

From India, Pune
Simran420
2

Dear All
Thanks to all of you for replying.
Dear Mr. Darshan Balai : I think 15.67% has been mentioned by you wrongly. It should be 13.61% right.
All mentioned that one share will be 13.61% but in CTC both parties deposit equal share i.e.12%.
At the end it concludes either employee or employer will pay 12.61%, employee will get the pf amount after deducting 1.61% of all amount. As example :
Suppose Employee A basic salary is Rs.1000 pm and pf amount on 1000/- will be Rs.120/ one share.
Monthly deposit will be 120+120 = 240.00.
After a year A has left the job and withdraw his/her PF then he/she should get Rs.2880/-
But he/she will get only 2833/- after deducting 1.61% admin charges.
I am right?
Pls reply.
Simran

From India
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