For all employees who work in an organized sector, following is the PF
contribution every month.
PF contribution by Employee = 12% of basic salary.
PF contribution by Employer = 12% of basic salary.
Employer Pension Scheme
Out of 12% contribution from employer, 8.33% of the contribution (subject to
maximum of 541 rs/month) is invested in employer pension scheme.
Lets take an example and understand this.
Ram's basic salary per month = 15,000
Ram's contribution to PF = 12% of 15,000 = 1,800
Ram's Employer contribution = 12% of 15,000 = 1,800
Employer's contribution to EPS = 8.33% of 15,000 = 1250
This 1250 is higher than the max limit of Rs 541/month and hence
Employer's contribution to EPS = 541
Employer contribution to PF = 1800-541 = 1259
So Total PF contribution to Ram's PF account per month = 1800 + 1259
How to calculate your PF balance?
Interest Rate on PF account = 8.5% (fixed by central govt)
So monthly contribution of 3059 for one year @ 8.5%
Hope its clear now
Employee total contribution is 12% of Basic
The Employer contribution is divided in two EPS 8.33% / EPF 3.67% parts. If Basic is less than >6500, the actuals are taken for EPS and EPF at stipulated rate. For Basic <6500, EPS ceiling is fixed at 541 and the remaining goes to EPF. Blindly the calculation cannot be done.
Just apply the banking compound interest to the (EePF + ErPF) accumulation and don't mix Pension Fund Scheme in to this.
Hope I have clarified the exact doubt of yours.
THanks a lot for the way u have tried is really wonderful but my query is not "how to calculate PF amount" but "how to calculate interest on amount", sorry 2 say but u have just mentioned "monthly contribution of 3059 for one year @ 8.5%" but did not explain (like 8.5% of 3059) which is not correct.
my quey is yet 2 get solved dear friends kindly help me!!!!
Thanks & Regards
Ee PF Cont(12%), Er PF cont(3.67%), Int @8.5% for 30 days, (PF+Int) amount
Like this add up the previous (PF+Int) amount with current month (Ee+Er) and work out for 30 days. ....upto 12 months.
If you do a flat calculation on 24% of PF, your answer is wrong because only the (EE/Er) PF part is taken into consideration in the Annual PF slip. EPS interest is not shown here.
Please try it and see.
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Intrest is calculated compoundly which is calculated every month at +(8.5/12/100)+1=.007+1=1.007 per month
for example your basic + da wages is 3500/- per month'
then epf amount will be-420+3500*3.67/100=420+128=548
then intrest calculation will be- 548*1.007/100=5.52 which will be added to next month epf amount n intrest will be calculated for nex month.
i hope you will be satishfied with my answer.