Provident Fund Deduction From Salary

Talent Acquisition / Consultant - Catalis

Payrolling, Hr & Establishment

santoshsingh1203
29th June 2013 From India, Lucknow

Respected Seniors, If any employee has worked 20 days out of 26 days then what should be his PF contribution if his basic+da is Rs.7000/-. Please guide me. Santosh Singh Cell# 9935448880

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shah01ankita
29th June 2013 From India, Mumbai

If you are contributing 12% on actual basic + DA,
Actual Basic + DA for month = 7000
Payable Basic + DA for working days = 20/26 * 7000 = 5385 (rounded off to nearest decimal)
PF is on pro-rata basis and so 12% of payable Basic + DA - 12% of 5385 = 646.2 rounded off to 646
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If you are contributing to the max limit of 6500 pm as prescribed by act,
Monthly limit of basic + da = 6500
hence for 20 days it is = 20/26 * 6500 = 5000
thus pf for said period = 12% of 5000 = 600
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Hope this helped.

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