Respected seniors,
Pls help me
Myself is shalu working as an HR Exec. in Gurgaon
An employee basic salary is 15000 p/m and company deduct 15000*20% as employees share. But as employer share we deposit @6500 pattern.
What amount should company submit as administration charges
is it 15000 *13.61%
or 6500*13.61%.
I want to make monthly Pf challan I m confused what entry should make.
Plz tell me it is urgent.

From India, Delhi
Your employer is illegal by deduction 20% on the employee salary. If question is raised legally he would be in a big mess.
Generally employee drawing a salary more than Rs.6500.00 is not entitled for any deduction of PF, if the employer and employee mutually agree, deduction can be done on employee salary @ 12% of what ever sum of salary he is drawing, but the employer share would be only 12% on Rs..6500.00.
Employer can not deduct 20% on employee salary and show in records that he had deducted @ 12% , the returns are fraud , he can be punished as per law.
Mohan Rao
Manager HR

From India, Visakhapatnam
Dear Sir, The employee is agree to deduct 20%. He wants to make a saving. Is it not fare? Or law does not allow us to deduct employees share excess from 12%
From India, Delhi
I informed above that, with mutual agreement between employee and employer the employee share can be deducted at any amount of salary, but the employer share would be 12% only that too on the permissible limit of RS.6500/-
Law does not say any where that the employee share is limited to only 12%, if employee wish and employer agree, than deduction of 20% of employee share can be done.
What I said above is the employer should not deduct 20% and deposit employee share as 12% , then the employer is illegal.
Mohan Rao
Manager HR

From India, Visakhapatnam
As our Mohan said if the employee is interested in doing saving then he ca have his own contribution towards PF upto 100% of his basic salary (upon his self-interest) but the employer is eligible to contribute only 12% of his basic pay.
And also I would like to add for Mohan statement that : " PF donot have any relation with the salary drawn salary, it is related to the number of staff working ( applicable if staff is more than 20 or according to the employer & employee interest if the number of staff is less than 20)".

From India, Hyderabad
For employees drawing more than Rs. 6500/- it is open to the management whether to contribute employee's share only upto Rs. 6500/- or extend it upto the actual salary. Thus, at that point, its a matter of company policy.
Please check the salary deductions of other employees at similar level to ascertain the practice at your company. Else, you can ask the concerned seniors in HR or Finance. Its better o be reckoned a "fool" once, than to spend the rest of your career in doubt.
Hope you"ll find the above suggestion useful.
Warm regards.

From India, Delhi
Dear Shalu you should submit PF administration charges on RS.6500 i.e. 6500*13.61 Best Regards Upendra Awana
From India, New Delhi
Hello all,
For the easy calculation of PF charges with different conditions you can use the software which is very easy to operate.
You can download the software from the following link -

From India, Nagpur
Provident fund is calculated on the basic of the gross salary of an employee which is mandatory for all whose basic salary is less than Rs.6500. Hence Pf is calculated @12% on basic or else Rs.780.

From India, Hyderabad
As I understand the PF deductible salary is Rs 15000/pm and employer deducts its own share @ 12% on Rs 6500 pm (Rs.780 pm) while for the employee matching contribution is Rs 780 pm and voluntary PF contribution is Rs 2220 pm. If the treatment is in line the admistrative charges will be paid on Rs 6500 and not on Rs 15000. In my opinion this way of treatment will be able to withstand judical scrutiny.
Ashok K. Ghose

From India

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