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kirubakaran n
Hi Team,
Below are my salaay details:
Basic Rs.12000
HRA Rs.6000
Conveyance Rs.800
Special Allowance Rs.6650
Medical Allowance Rs.1250
Food Allowance Rs.1500
Gross pay = Rs.28200 out of which my company is deducting Rs.1800 as PF. Can anybody please explain me the whether the deducted PF is right or not ?

From India, Chennai
maulik dave

@ Kirubakaran N,
As per current PF Rule the deduction should be @ rate of 12% on (Basic+ DA). In above given salary package there is only "Basic" so it applies to 12000. So, it has to be (12000 X 12%) Max 1440/- dedcution.
You can ask the concerned HR for the excess deduction.
Hope this will help.
All the best

From India, Ahmedabad

Mr. Kibakaran
Your company is calculating PF wage in Rs. 15000/-. EPFO recently raised the pension scheme wage from Rs.6500/- to Rs.15000/-. In this connection your company in calculating PF wage from Rs. 15000/- @12% =rs.1800/-.
Hope your doubt has been cleared. Do u have any further clarification kindly post.

From India, Madras

12% deduction on the PF ceiling of Rs.15000/- is Rs.1800/- which has been deducted by your company.. Hope this is clear
From India, Mumbai

The PF amount deducted was excess.
It must be 1440/-INR which is calculated as 12% on Basic Pay of 12000/-INR
Yes recently there is a change in PF ceiling of Rs.15000/ from 6500/-INR...But still the basic rule remains the same.
Hope it is clear!


Mr Manoj Devda
I herewith furnish the PF wages mean according to Section 2(b) of EPF & MP Act 1952 all emolument which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of emploment and which are paid or payable in cash to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name
called paid to an employee on account of a rise in the cost of living), houserent
allowance, overtime allowance, bonus, commission or any other
similar allowance payable to the employee in respect of his employment or
of work done in such employment;
iii. any presents made by the employer;
for more details kindly view the below link

From India, Madras

It seems your employer do not want unnecessary litigation with PF officials on the wages/salary structure. HENCE he has deducted PF on salary construed at Maximum on date. Good nothing to worry. In a short period say by April you will get Form 23 which will reflect the fact.
From India, Chennai

Hello HR Bloods and dear Kirubakaran Bro,
This is Ajay SP. My email id is

Its purely because of the ceiling of PF to Rs 15000/- If your salary is less than 15000/- then you would be covered under ESI Act. For a worker and his family to get eligible for the benefits of ESI is that the worker should have been working in the organization for more than 78 days and his salary should be less than Rs15000/-

Since your salary is more than Rs 15000/- (you are getting around 28K) you are not eligible under ESI act. Hence they have taken the minimum ceiling amount for PF calculation. This Stuff Basic + DA is applicable for the calculation of PF only when the sum amount exceeds Rs 15,000/- That is why you have been deducted Rs 1800 (12% of 15000). Hope you are clear now.

Also please don't worry bro for PF matters in mere future too, because whatever the amount they have deducted from you, the same amount the Employer have also to contribute too from their Treasury. Hence they will be more cautious in this matter.Ha ha. EPFO is mainly for our Future Savings & Protection purpose scheme. Hence happily contribute more to it. You can also avail the facility of additional PF. For more details regarding Additional PF please be feel free to mail me.

Thank You :)

From India, Bangalore
Hi Recently govt of india raised the amount from 6500 to 15000. so 12% of 15000 is 15000*12/100=1800 this amount is correct. No issues
From India, Chennai
Exp Professional HR Admin Ops

To all those mates who stressed on Basic + DA for PF calculation..
Basic + DA for PF department is different from the Basic + DA set as per minimum wages ..
For PF department 70 % of the total salary or 15000 whichever is lower is the PF salary. So in this case 15000 is lower than 70% of 28200. So the amount 1800 is correctly.
Even if Basic was 11000 and DA was 3000 in this case where total salary is 28200, the PF deducted has to be 1800.
You may kindly refer rule 2a of PF ..

From India, Kochi
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