Industrial Relations And Labour Laws
Gunjan Sarojwal
Recruitments, T&d
+2 Others

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
In my company 'basic pay ' is mimimum 4000 rs and max upto 6500. and PF is calculated at 12% of basic and equal contribution is made by employer-employee.
Please resolve my 4 queries:
4 PF calculation queries:
1. Pls provide some insight into the % or amount of "basic element' of salary.What is min to max range of 'Basic' element of salary for PF calculation.
2. If someone's basic pay goes above 6500 then should we calculate PF till 6500 or for total amount of basic.
3. What is the proportion of Basic and HRA elements in total salary.
4. Do the employee-employer have to deposit same amount of PF or the % of sumbission is different.

From India, New Delhi
I think the same question was answered many often.
It is not mandatory that the PF should be contributed only on a basic salary subject to a maximum of Rs 6500, but if the employees wishes that he should contribute on a higher amount, say, Rs 15000, he can do so. The percentage of 12 is the statutory minimum and if the employee wants to contribute a higher percentage he can do so. However, the employer can restrict his contribution to Rs 6500 and to 12%. If the terms of employment so requires the employer can also contribute higher percentage and on a higher amount. As such the employer's contribution and employee's contribution NEED NOT NECESSARILY be the same.
Regarding Basic salary and HRA proposition, there is no hard rule but it is decided according to the company's internal policies.

From India, Kannur
Please find attached PF Calculation (samples).
From India, Mumbai

Attached Files
File Type: doc PF calculations.doc (63.0 KB, 2102 views)

dear all my basic salary is 15000 thousand and da is 7080, so can you plz tell me that calculation of pf.
From India, Pune
Calculation: Basic + Da x12 % 15000+7080=22080x12%= 2649.6(Amout deduction by the employee)
From India, Dehra Dun
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™