Archana Meg Valar
SOUBHIK KUMAR GHOSH
Hr - Incharge
Statutory Complaince/labour & Employment
Arpit Sharma Agra
there are some basic regarding pf
1. Pf is calculated on only basic of salary, not DA
2. Employee contibution is 12%
3. Employer contribution is devided in two parts
A) 3.67%- which goes directly in the pf account of an emplyee.
B) 8.33%- Which goes to family Pension Scheme.
Including above, employer has to pay Administrative Charges = 1.10% on
the total ammount of basic ie (6500 & above also).
Then Employer has to pay contribution for EDLI Scheme = 0.5% & Administrative charges =0.01% of the Ammount of total basic cosider for Family pension scheme which does not include total basic amount above 6500
So this total is= 12%( 3.67+8.33)+1.10+0.5+0.01=13.61% paid by employer.
6000 basic = Pf contribution by Emplyer=720+66+30+0.6=816.6
Dearness allowance though not there in defination of basic wages and contribution but it qualify under section 6 subject to Rs 6500/-. if any employee not giving DA as part of salary than only on basic.
Please refer to the below mention claculation
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.67%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)