Kumaran Praveen
Hr Generalist With 8+ Years Exp. Good In
+1 Other

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear Members, I am working in a Real Estate Organization, I have faced a situation wherein an employee's basic+da is Rs. 17500 exceeding Rs. 15000 pm and his PF is deducted @ 12% of 15000 i.e. Rs. 1800 pm on full working day. But if in a month he is not paid for full month i.e. I mean to say if he is paid only for 10 days in that month then whether his pf will be calculated on the basis of Rs. 17500(for 10 days) or Rs. 15000(for 10 days). A/c to me it has to be calculated on Rs. 15000 but few told me to deduct on Rs. 17500. If for 31 days of the month his basic salary a/c to Rs. 17500 will be Rs. 5645 for 10 days & PF contribution will be Rs. 677.41 where as a/c to Rs. 15000 will be Rs. 4839 for 10 days & PF contribution will be Rs. 580.6. Your early reverts will be highly obliged.


Shivendra Tripathi

Hi Mr.Tripathi,
Happy Morning
You have to pay PF contribution for Rs-5645, Because in full pay employee salary is exceeding 15,000 ceiling where as for 10 days pay the amount is well withing the mark (15,000) hence you have to deduct PF contribution in Rs 5645 which comes to 677.4.
With Regards
Mr.Thumbs Up

IF employee is absent to work then it will be treated as NCP(Non contributory period) of that month, NCP word its self saying "Non contribution period" so they can't deduct on over all 15000 ceiling.
Ask for the ECR (Online Monthly returns) if they mark you for full days 30 or 31 (to deduct on 15000) then it says you are present for full month then you are entitled to get full salary, so you ask for the full salary with this proof. you can go to Labour inspector on this.
Or else if they marked your NCP days in the ECR (Online Monthly returns) & If they took the 15000 ceiling from starting then they can't deduct for full 15000 because you have NCP days in that month. Then they wrongly calculated your PF.

Hi, Greetings..!!! It has to be 5645*12% ie 677.4 as max limit of earning kept is 15000 any earning below that should be taken entirely upto 15000. so 15000*12%=1800 max. Regards Bhavia.
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™