Employees Provident Fund Contribution And Calculation - CiteHR
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To all my learned freinds and seniors
I am enclosing here Three set of calculations . Please guide me which one is correct?
I request you to also enclose copy of Act/Scheme/rules. I will be really greatful
please see attached document

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Calculation 3rd is correct and appeal may submit to the appellate authority with PF commissioner with the jurisdiction of concerned area.
The DA is part of the overall calculation as per law, & rather instead its all wages which PF Board is trying to cover under the scope of contribution which was recently announced but again kept in abeyance by Labour minister.

Dear Rakesh,
Please find attached PF calculation as per PF guidelines.
Account 1 (PF) -
Employee Share - 12 %
Employer Share towards PF - 3.67 % + excess of Rs 541
Account 2 (Admin Charges for PF) -
Employee Share - NIL
Employer Share 1.10 %
Account 10 (Pension Fund) -
Employee Share - NIL
Employer Share 8.33 % subject to limit Rs. 541.
Account 21 (Insurance Fund) -
Employee Share - NIL
Employer Share .5 % .
Account 22(Admin Charges for Insurance Fund) -
Employee Share - NIL
Employer Share .01 % .
** If the salary of employee is more than Rs 6500 then the PF Contribution payable by employer is only limited to Rs 6500/- only (or Employer Wish to pay on more) as per Para 2 6 A (2) of PF Scheme, Para #(2) of EPS Scheme and Para 7 of EDLI Scheme.

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File Type: xls PF Calculation.xls (13.5 KB, 5579 views)

Hi For PF calculation, employee and employer, both side, you can check the attachment in which PF % is given. Thanks

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PF contains 3 major chunks which are as follows:
1. PF
2. Pension
3. Employee Deposit Linked Insurance Scheme (EDLI)
An Employee who is drawing basic salary of Rs. 6500/- per month is covered under the PF, PF is 12% of wages (i.e wages includes BAsic + D.A). In PF both Employer and Employee are required to contribute, the deduction rate is same i.e 12% of wages
of this,
3.67% goes to PF and the balance of 8.33% goes to Pension Fund so, (3.67 + 8.33=12%)
Now, apart from contributing to PF and Pension Employer is also required to contribute towards EDLI and the rate of contribution is 0.5% of wages. The Employee need not contribute any thing towards this scheme, One more benefit from this scheme is, In case of death of the Employee, his/her nominee will get a maximum of Rs.60,000 from this scheme
Apart from this the Employer is also required to pay administrative charges at 1.1% of emoluments towards PF charges abd 0.01% towards EDLI

Dear Monica,
Keep yourself update as many freshers follow the posted material.
Kindly find below the updates on EDLI Benefit
The 190 th meeting of Central Board of Trustees (EPF) chaired by Union Minister for Labour & Employment Shri Mallikarjuna Kharge has decided on 15.9.2010 to enhance the ceiling limit of EDLI (Employees Deposit Linked Insurance) to Rs. 1,30,000, equivalent to 20 times of salary ceiling limit of Rs. 6500.
On June 18, 2010 this was enhanced from Rs. 60,000 to Rs. 100,000 vide GSR 523(E).

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File Type: pdf EDLI Scheme amendment 8.1.11.pdf (382.2 KB, 1005 views)

I seen both excel files. Thanks for updates. But as per new pf version 4 which is using pf dept. there is difference between your 1.10% administration charge and version 4's admn charges.
pl. let me know the actual admin.charges.
ramesh lawande
manager -hr

CPFC Notification - Employer PF contribution under section 6 is payable only on basic wages (which excludes HRA, Overtime Allowance, Bonus, Commission etc.), dearness allowance (which includes cash value of any food concession) and retaining allowance, if any.
PF Contribution isn't Payable on CTC as per CPFC Notification

I have member of EPFO for nearly 5 year and my contribution was calculated under 6500 and now it has been changed to 15000.
My question is;
- Would I be eligible for the pension?
- What is the minimum period for EPFO to be eligible for pension?
- Assuming that I would be working for 15 more years, how much total fund would be generated?
- How much pension would be incurred after 20 years of deposit?
Rajan Gautam

One of our employee drawing more than 15,000 salary, we are treated as exempted employee but he want pf benefit we can pay only his pf contribution to pf fund ? company is not paying pf contribution
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