Archana Meg Valar
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SOUBHIK KUMAR GHOSH
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Essykkr
Statutory Complaince/labour & Employment
Anurag Jain
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Samuel R
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Bjpani
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Chanda Batra
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Pravinkjoshi
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Hello,
I want to know from any one in respect of the actual amount of PF contribution made by the employee under PF Act. We know that the eligibility for contribution of PF by the employee is Rs. 6500/- & the contribution made by both the employee and the employer are 12% & 13.61% respectively. I may be made clear in response to this post whether the %age of contributioni.e. 13.61% made by the employer includes the contribution of 12% by the employee plus 1.61% or an eligible employee contributes in total 12%+13.61%=25.61% from his salary which includes Basic + DA. If possible, it may be clarified with suitable examples the actual contributions made by both the employer & the employee if the salary (Basic+DA) of the employee is Rs. 6000/-.Thank u & hope to receive any reply from anybody in respect of the above.
[Biswajit Pani]
E-mail Id:
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HY BISWJIT,
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
Hi, I would like to know whether the employee contribution can exceed 12% or not? Looking forward to your response Sathish
The voluntary contry contribution rate of employee contribution can exceed from 12% but employer contribution will remain the same 13.61
Dear Anurag, Since you have mantioned that employee contribution could exceed 12%, please let me know the maximum limit and what would be the amount of Basic that would be shown in books of accounts.
An employee can contribute a max. of another 12% i.e. 12% mandatory and another 12% of basic VPF....Hope it helps!
Employer contribution is devided in two parts A) 3.67%- Which goes to family Pension Scheme. B) 8.33%- Which goes directly in the pf account of an emplyee Needs to be corrected.
Please correct yourself the contribution toward PF is payable not only on basic but it also include Dearness allowance and food concession allowance or retension allowance if any.
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.
Dear Mr. batra, The maximum limit of vpf is 20% from the employee side, but the contribution from the employer side remain same 13.61% regards, arpit sharma
Dear All
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)

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