Hr-manager, Trainer, Writer
Making Relation With Others
Sr. Hr Executive
Recruitment, Payroll Management, Statutory
Finance, Stock Market
Executive Payroll
Team Lead
Pf, Contractor Labor, Labour Laws, Lioisoning
Human Resources
Sandee Khola
Hr & Admin.
Recruitment, Performance Management, Payroll,
+24 Others

Thread Started by #Gvpcollege

Hi Seniors,
My salary is 19,838. For this amount my company deducting 996 as PF. How it possible. My Hr Said that we are calculating on CTC. Can any one please clarify my doubt please.
Thanks & Regards

24th January 2011 From India, Visakhapatnam
Hello girish, PF Cal on Basic salary. What is your basic ? Basic 12% is your PF Deduation. If you basic is 8300 X 12% = 996 Regards, somashekara
24th January 2011 From India, Ujjain
Dear girish,
The PF limit is Rs.6500/-. if you are getting 50,000/- then also the deduction should be on 6500/-( Basic+DA). the calculation method is =6500*12%=780 . if they included admin charges (1.6%)it could be 884/- (total 13.6%).as per my knowladge it's wrong . please check with the your HR and their policy.
24th January 2011 From India, Bangalore
dear girish,
iam totally aggry with mr. Murali.
PF always deduct on basic salary & if u have basic salary more than 6500 then it will be calculated on 6500@ 13.61% maximum 887 rs if they deduct more then this then u should talk to ur hr dept.
24th January 2011 From India, Delhi
Dear Murli,
You are right but it is not in all cases, if an employee's basic is more than 6500/-, he has has the option to chose.
Either he can contribute 12% on 6500/- i.e Rs 780/-
or 12% on actual basic .i.e 8300 X 12% = 996/- (if basic = 8300/-)
Moreover Admin charges is applicable to Employer not to employee, employers are supposed to contribute 13.61% on basic to PF dept.
Correct me if I am wrong.

24th January 2011 From India, Visakhapatnam
Dear Girish,
PF is calculated @ 12% on Basic Salary.
If your basic is more than Rs.6500/- then the contribution can be limited to Rs780/- or calculated on full basic salary.
In your case it seems the PF is calculated on full basic salary which is Rs. 8300/-. (as Rs.996/- is deducted as mentioned by you)
Pls check your payslip or CTC for your basic salary and confirm.
Hope this solves the query.
Manasi Shah
Advent Corporate Services
24th January 2011 From India, Mumbai
plz sir tell me how i get establishment code and name to know my pf claim status.my pf no, is pn-2820/10825 and how much time taken by them to credit my money in the bank.
25th January 2011 From India
Hi Seniors,
Adding to the query, from the starting of this month my company(a financial data service provider) circulated an email asking all the employees to put their signatures on a consent form which says that now onwards the PF will be deducted on actual basic and there will be no capping of 6500/. So what I want to know is there any rule through which this cap can be disregarded and now onwards will the employer and employee both will contribute towards the PF at same rate? i.e. 12% on actual basic?
Thanks for your valuable opinions!
25th January 2011 From India, Gurgaon
We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.

In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab

As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.

I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.

Government should think about middle class family. “Poor are becoming poor day by day”

Expecting some amendments in PF slab in the new Fiscal Year.
25th January 2011 From India, Vadodara
i think you have misunderstood what HR is said. If he said the it is included in your CTC then its OK... but if he has said that it is calculated on your CTC then it is wrong... Therefore clarify the same from the HR department...
25th January 2011 From India, Bangalore
hi lalit
u can visit EPFO & can fill ur code & employer code to know the solution.
if u wana withdraw pf u have to visit the local pf deptt to know the process & fill the right form, get it signed from the HR deptt & deposit the form at pf deptt, automatically u will get the amount from pf deptt. within 1 month of form submission.
25th January 2011 From India, Ludhiana
dear all
the above expressed are correct. dear girsh u
- u should see ur appointment letter where the salary breakup is given
- also see ur pay slip which someone has pointed out correctly
- tough PF is restricted to Rs6500/ some compnaies will extend te benefits even though it is morethan 6500
- PF is deducted @ 12% of bsic and DA(this allowance is optional, some companoes may give or may not)
- there is no question of adding any admn expenses for this.
- CTC is confused word, one should understand the same, before accepting the pay package.
hope all the points hv been clarified
dr nagaraj.
25th January 2011 From India, Bangalore
Dear Girish, I totally agree with Mr.S.K. Singh, P.F. is calculated on basic. please chk your pay slip. I think your basic is Rs.8300/-.
25th January 2011 From India, Bangalore
Dear Girish,
PF calculated on basic salary.
As per govt norms minimum PF Contribution is 12%.
Basic Salary * 12% = PF
But if a employee want to contribute more towards PF, he can go upto 100% of his basic salary, for this he need to give a consent to his HR Dept.
Check with your HR team.
25th January 2011 From India, Mumbai
Dear learning friends,
EPF can be ddctd @ 12% on basic+d.a.+retaining allowance & rounded to nearest rupee as less than 50 paise and 50 paise or more. If basic+d.a.+retaining allowance is more than 6500/- per month, it requires mutual consent of employer and employee for EPF eligiblity.
u can feel free to contact mob. no. +91-9989931754.
Your friend,
"Move forward remembering your failures"
25th January 2011 From India, Jaipur
Greetings for the day!
Hellow everyone, as i m fresher in Hr i wanted to know how to calculate all allowances in salary structure. i want exact percentage for basic, HRA , Conveyance allowance.
kindly guide me on it.
25th January 2011 From India, Pune
Hi Girish,
you dont have to break your head for this simple query. though PF deduction is to be done on a max cieling of 6500(Basic+DA) some companies follow a procedure of deducting the PF at a flat rate of 12% on basic irrespective of the maximum cieling. So it purely depends on the policy of the company. Infact this is a benefit to the employee since some considerable goes as savings and also they get tax benefit on the accumulations.
Ramakrishna Dirisala
Human Resources Manager
25th January 2011 From India, Nellore
Hi Priyanka,
First of all I hope you understand the importance of devising the various salary components. The CTC comprises of various components, VIZ Basic, HRA, DA, Conveyance Allowance, Children Education allowance, Medical allowance, etc. Generally it is known as FBP (Flexible Benefit Package) which is design with the objective to have the TAX saving from the salary. There is no standard way of devising the salary structure, different companies design the payroll as per their policy. But, few basic things that we have to know is upto what extent the allowance are tax exempted, for example medical allowance is exempted from TAX upto Rs 15000 per annum, conveyance upto Rs 800 per month, etc., so accordingly we have to design the other components too.
For your reference you can find the Compensation guidelines as attachment.
Everybody correct me if I am wrong....!!!
Thanks and regards,

25th January 2011 From India, Visakhapatnam

Attached Files
Membership is required for download. Create An Account First
File Type: pdf COMPENSATION_Guidelines[1].pdf (60.5 KB, 102 views)

[QUOTE=Gvpcollege;1417724]Hi Seniors,

My salary is 19,838. For this amount my company deducting 996 as PF. How it possible. My Hr Said that we are calculating on CTC. Can any one please clarify my doubt please.

Thanks & Regards

Dear Girish

The PF amount deducted from the employee is only 12% of his/her Basic. The Admin charges of 1.67% is Employer Contribution. Employee need'nt have to contribute for Admin Charges. The PF limit is 6500 Basic. For which 12% will be 780/- only. If your basic is more than 6500 the employee can decide if he/she wants to contribute 12% on that amount or wants to contribute only 780/-.
Please check your CTC and if your basic is more than 6500 you have the right to tell your employer that you want to contribute only 780/-
The exact PF Calculation is as follows:

Employee Contribution: 12% of Basic if less than or equal to 6500
Employer Contribution: 12% on your basic and another 1.67% on ur basic for Admin Charges.

So For Ex: If your basic is 6500/- you will have to contribute 780/- and ur employer will have to contribute 889/- So totally 1669/-will go into your PF account every month.
Hope this will help you.

Thanks & Regards
Malini Naveen
HR & Admin Executive
25th January 2011 From India, Tiruppur
Dear All,
Can you please let me know, If a Employee will be given an option to choose from the below:
Either he can contribute 12% on 6500/- i.e Rs 780/-
or 12% on actual basic .i.e 8300 X 12% = 996/- (if basic = 8300/-)
Then everone wld prefer to go for the 1st option, tht 12% on 6500/-....
So do the company choose the option for the employee or employee has liberty to choose their own option?
25th January 2011 From India, Thana
We cannot say that, all are not same, few are very traditional in nature, they love to save as much as they can. Moreover if an employee chose the 1st option employer is also liable to contribute the same amount of contribution to PF Dept.
Employee has the right to chose. But in other sense it is almost the same for employer as both contribution are adjusted in CTC.

25th January 2011 From India, Visakhapatnam
Dear Sir, My basic pay is restricted to Rs.6500/-. Can i increase my basic pay to facilitate more PF contribution.
25th January 2011 From India, Chandigarh
Hi Girish,
As per PF act, Employee Contribution is 12% on Basic salary and 13.61 % is employer Contribution Including Administrative Charges.
Employee can contribute more than 12 % on basic salary as per their own interest but there is maximum ceiling (Cut Off) amount for employers to contribute PF. That is (Basic+DA) = 6500/- . Some times employer may keep their ceiling amount as 7500/- but that is based on employer interest.
As you said, Employer is deducting 996 as PF. That means they are deducting your contribution. If they want to deduct 996 as a PF, Your basic should be 8300/-. First you can check your salary break up. If you find your basic is not 8300\- ask your HR to explain the break up.
Bhargav P

25th January 2011 From India, Madras
Dear Sir
plz write me any specific rate of HRA Calculation that is resonable under rule & regulation . Although rate of HRA calculation is 50% ( for metro city) 40% for other city, while some company or organisation calculate 20%, 25% 26%, 30%, 80%. I.m confused how can and which basis they calculate . Is it depends on company as they calculate HRA any rate based on company nature.
plz suggest me
25th January 2011 From India, New Delhi
Dear Lalit,
when you leave one co. then after completion of 2 months only you can withdraw your PF amount by filling a PF withdrawal Form which is easily available in any good stationary shop. Get your PF withdrawal form, fill it up allthe necessary details with 2 revenue stamp. get it signed by the authorised signatory of the co. from where you have left. They will fill all the details. Then you have to go to the PF office which is in wazirpur if you are in delhi. get it submitted and you will get the cheque deposited in your A/c near about after another 1 1/2 - 2 months time
25th January 2011 From Australia
Hi Members,
I totally disagree. As per my knowledge, PF calculation goes as below:
Employee PF = 12% of Actual Basic (regardless of wage ceiling of Rs.
Employer PF = 8.33% of Basic salary or maximum Rs. 541/- (Pension Fund)
3.67% of Basic salary (limited upto Rs. 6500/-, if more
than Rs. 6500/-, then it will employee provident fund
contribution - Rs. 541/-)
1.1% of Basic EPF Admin Charges, Contributed by Employer
0.5% of Basic EDLI account, Contributed by Employer
0.01% of Basic EDLI Admin Charges, Contributed by
Employee's contribution of 12% goes to Provident Fund account and Employer's contribution of 13.61% goes as mentioned above. On successful completion of 6 months employee is eligible to claim Pension amount i.e. 8.33% of employer's share of contribution (Note: interest not applicable on Pension Fund).
Correct me if I am wrong.
Asgar Ali
25th January 2011 From India, Madras
Dear all,
Employee contribution is 12% on Basic salary & it will be expandable up to 20% either less than 6500 or greater than 6500
Employer contribuion is 13.61% [ Pension Base 6500 is the basic celling limit and employer contribution is 8.33% (i.e.541) + 3.67% of basic salary ( i.e. remaining amount of employee contribution of 12% ) + Admin cahrges 1.10% of Basic salary + EDLI Charges 0.50 % of pension base + .01% of pension base ]
For more detail
mail me devdubey09 or call me 09860374690
25th January 2011 From India, Gurgaon
Hi all
It has been customary for all employers across all industries irrespective of fame and banner in the society to err or commit irrepairable damages in remittance, entries and returns. As per statistics, less than 15% of employers strictly follow the compliance. What about the rest?
So, it's time to abolish such Social Security Acts and instead directly remit the EePF/ErPF into individual's bank account under PF Recurring Deposit linked to the employee's salary account. The annual returns alone be filed with PF office. This would make the PF offices less crowded and hasslefree. Unless a new idea is activated, EPF has no purpose to serve and as usual a whopping unclaimed money to tune of Rs.1200 crore will ever lie in the safe vault of EPF without being utilised or approved by parliament for other investments.
25th January 2011 From India, Madras
dear lalit, Your pf no. is 10825 and your establishment code is pn-2820. If you are working with this organisation you must know the name of this.
25th January 2011 From India, Gurgaon
Dear Girish
I go with manasi. To my knowlegde, as all seniors said its the same what i heard on pf calculation.
It depends upon the company whether they use limited PF , or unlimited pf calculations.
In your company , its unlimited pf calculation.
Hope ur doubt got cleared by adding my point also...
26th January 2011 From India, Madras
Dear Mr.Girish,
I think there is communication gap in this regard.
I feel they might have deducted PF as per statute i.e.12% on basic with ceiling limit of Rs.6500/- and remaining must have been deducted towards VPF. In that case, whatever they have deducted. It would be OK.
Pl. check with your employer immediately.
Ramachandra D Joshi
Hospet, Karnataka.
26th January 2011 From India
Dear Girish,
First you should give your Basic salary.
If your basic is 8300/-, then
your PF deduction will be @12% on 8300 i.e 996/- (Your contribution)
and PF from employer contribution will be = 455/- (996-541)
and EPS deduction @8.33% on 6500/- = 541/- (from employer)
Kundan Suman
26th January 2011 From India, Ahmadabad
Dear All,
one of our employee had worked 231 days in last year(Jan 1st 2010 to dec 31st 2010), and also he has taken ESI Leave for 10 days is it Necessary to give him Earned Leave (EL) or not ?(I need karnataka factory rules) please clarify
Thanks & regards
27th January 2011 From India, Bangalore
Hello girish,
This R.K.MURTHY FROM . I agree with Mr. S.K.SINGH, Sr. Executive - HR - Eastern India.
As explained there is an option for PF deduction on actual basic and Admn. charges are for employer only. Pl. contact your HR Dept.
With regards,
Essen & co.,
27th January 2011 From India, Visakhapatnam
Dear sir,
I am nishant kumar mishra warking as accounts Exe. and my
company provied Pf accounts number only not provied Pf slip .if we resignation our post what is prosuder of taking pf .
please clear my doubts.
thanks with regrds
nishant kumar mishra
27th January 2011 From India, Gonda
hi seniors
pls tell me on withdrawing the pf what an emp will get if he don't want to get pension:
either 12% employee share + 12% employer share
or 12% employee share + 3.67% of emplooyer pf contribution as 8.33% goes to pension fund.
28th January 2011 From India, Ludhiana
Dear Seniors, As per the current norms PF contribution is 12% or 12.5%? Regards Sanghamitra
28th January 2011 From India, Bhubaneswar
Dear all plz tell me TDS rate of calculation if ( is there any different rate of TDS on salary based of Company nature then plz tell the rate of all nature of TDS rate for any establishment or company)

Mr. x works in a limited company and he gets CTC 700000 ( Basic -30000, HRA 23500. Conv.-13850, Ch. edu allowaces-5650.

as per my knowledge my calculation is Taxable income=70000*12=840000

No Tax on salary less than 160000 ( age below 65 years)


Tax exemption on Rent 11% - Total HRA received



Conv=13850-800 ( Tax exept 800)=13050

Ch. ed allow. Rs. 200 ( per 2 child -am not sure only a lump sum amount taken for consideration) for 2 child 200*2=400

Edu. allowances 5650

Total monthly salary=basic+ HRA+Conv.


Annual salary=63965*12=767580

Gross salary is above 500000

so the Tax rate on Total net income =30%

Monthly TDS deduction = 767580*30%/12=15189

Plz confirm me am right or not

I'm highly obliged u if anyone who guide me to understand me the TDS

its very needfull to me
25th February 2011 From India, New Delhi
Total PF rate of deduction is 25.61%
Employee share=12%
Employer Share=13.61%
in 13.61%= 8.33% for Family pension fund, 1.1% admin. charges ,.05% edli
and difference of Employee's Share and Pension Fund
25th February 2011 From India, New Delhi
Dear Nishant
You have to fill Form 19 & 10C ( 10C is submitted when you have worked above six month in a company) 2 month later after the date of resignation
theie is no issue of PF slips ( PF slips only for confirmation of ur PF account and amount . That is only in employee.s case ) and if ur company is not submitted the Annual Return then plz attached Form 3A ( attested copy by the company)
25th February 2011 From India, New Delhi
maximum limit of Rs. 6500/- i m not able to understand as all companies are deducting PF @ 12% on basic whatever basic is, my basic is 11,000/- and contribution is 1320/- @ 12% then how mix limit only on 6500/-
25th February 2011 From India, Hyderabad
Dear Colleagues
Can anybody please clarify what is the pension we get at the time of retirement.
Becuase attached article opines that we should not consider the limit of 6,500.
Pls clarify.
Thanks and Regards,
Murali Mohan Voleti.
GVK, Hyderabad
25th February 2011 From India, Hyderabad

Attached Files
Membership is required for download. Create An Account First
File Type: pdf 6 Provident fund secrets you did not know.pdf (100.4 KB, 66 views)

Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™