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Sweekriti Sharma
Hr Admin Officer

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hi, i have a query on PF if my pf deduction is 780/- so what will total amount or how is the total amount Calculated ????? what is company share n interest we get in if it is for 17 months.
From India, Mumbai
Dear Sweekriti ji,

You have contributed for PF @ Rs. 780/- p.m. for total 17 months.

Your employer has contributed equal amount of Rs. 780/- p.m. for total 17 months, out of which PF contribution is Rs. 239/- p.m. and remaining Rs. 541/- is in pension account.

Your share towards PF for 17 months @ Rs. 780/- is Rs. 13260/-

Your employer share towards PF for 17 months @ Rs. 239/- is Rs. 4063/-.

Your total share towards PF for 17 months is Rs. 17323/- with out interest. Interest rate keep on changing and is as under:

1996 to 2000 : 12%

2000 to 2001 : 11%

2001 to 2005 : 9.5%

2005 to 2010 : 8.5%

2010 to 2011 : 9.5%

2011 to 2012 : 8.25%

Compound Interest is calculated on monthly contribution basis.

Your employer has contributed towards pension @ Rs. 541/- for total 17 months comes to Rs. 9197/-. You can withdraw your pension or take scheme certificate. No interest is payable on withdrawal and this withdrawal is not the withdrawal of your accumulation amount in scheme. The withdrawal value is decided on the basis of proportion of PS wages at the time of exit, as given in Table D under paragraph 14 of the scheme.

You worked for 17 months. That means your completed year service is one year. In this case, your withdrawal i.e. return of contribution, will be 6500 x 1.02 = 6630. (1.2 is a proportion of PS wages at exit on 1 year completed service as given in Table D of the scheme).

From India, Mumbai
Dear Anuj ji,
Please find below is the Table D as per para 14, as desired by by.
54
TABLE D
(See Paragraph 14)
Return of contribution on exit from the employment
Year of Service Proportion of wages at exit
1 1.02
2 1.99
3 2.98
4 3.99
5 5.02
6 6.07
7 7.13
8 8.22
9 9.33
Note :
The above table is based on a flat addition in benefit.
54. Subs. by G.S.R. 438(E), dated the 10 th June, 2008

From India, Mumbai
Hello Sweekriti,

if your PF deduction is Rs.780 per month then your basic pay + DA = should be Rs. 6500.

as per PF rule, Employee contribution is 12 % of your Basic Pay + DA. (which should not exceed 6500) for example if your BASIC and DA is 7500 then employer can deduct the PF on 6500 only that will be fixed. and if your BASIC + DA is 6000 then it will be Rs. 720/-

(Typically 12% of the Basic, DA, and cash value of food allowances)

Calculation of Employees Provident Fund Contributions

Basic salary of Rs 3500

Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500.

Contribution Towards Calculation Amount

EPF Employees share 3500 x 12% 420

EPS Employer share 3500 x 8.33% 292

EPF employer share 3500 x 3.67% 128

EDLI charges 3500 x 0.5% 18

EPF Admin charges 3500 x 1.1% 39

EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)

Basic salary above Rs 6500

In such cases companies uses different method for calculation as per their pay roll policy. Consider an employee getting a basic salary of 7500/- We can calculate it in different ways but EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs 541.00. The three methods mentioned below are based on the above example.

Method-1

If company consider total basic salary above the limit fixed 6500.00 for PF calculation. Employer has decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00. EPS Share is fixed to 541. Balance (900-541) goes to EPF account 359.00. You may be thinking that, what about 3.67%?, Here you donít need to care about it.

Contribution Towards Calculation Amount

EPF Employees share 7500 x 12% 900

EPS Employer share 6500 x 8.33% 541

EPF employer share 7500 x 12% (-) 541 359

EDLI charges 7500 x 0.5% 38

EPF Admin charges 7500 x 1.1% 83

EDLI Admin charges 7500 x 0.01% 0.75 ( Round up to Rs 1/-)

Method -2

Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-

Contribution Towards Calculation Amount

EPF Employees share 7500 x 12% 900

EPS Employer share 6500 x 8.33% 541

EPF employer share 6500 x 3.67% 239

EDLI charges 6500 x 0.5% 33

EPF Admin charges 6500 x 1.1% 72

EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)

Method-3

Some companies calculate both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00

Contribution Towards Calculation Amount

EPF Employees share 6500 x 12% 780

EPS Employer share 6500 x 8.33% 541

EPF employer share 6500 x 3.67% 239

EDLI charges 6500 x 0.5% 33

EPF Admin charges 6500 x 1.1% 72

EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)

From India, Mumbai
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