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Hi, I am from Kerala. I would like to know about the updated PF, ESI & TDS Calculation steps. And On what basis, Basic or Gross, PF & All other terms calculated.
What all are the Salary heads we can consider to maintain a HR Policy in an organisation.
Also please share the employee & employer PF, ESI & other deduction on salary should be maintained.
If anyone have updated payroll calculation sheet, please share.
Thank You

regarding salary structure, it depends on employer policy, how much they show in basic, DA, HRA , convayance and others
regarding PF it is deducted 12% from basic + DA
regarding ESIC it is deducted 1.75% from gross salary ( ceiling is 21000/- from 01/01/2017)

As per my knowledge PF is Calculated on Basic+DA, but recently I read some article about PF and on they mentioned PF need to calculate on gross not in Basic.

Article quote " According to the PF Act:

1. PF contribution should be calculated on “basic wages” (plus DA, cash value of food concession, and retaining allowance, if any) and;

2. beyond basic wages (plus DA, cash value of food concession, and retaining allowance, if any) of Rs 6500 per month, the PF contribution is not mandatory but can be made if employees and employers so wish.

Let us examine the above in greater detail.

Basic wages, as stated in the PF Act, is not the same as the “Basic” head of pay.

Here is what is stated in Section 2b of the PF Act.

2(b) “basic wages” means all emoluments 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 employment 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, house-rent 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;............................

Now I am confused how to treat this!

If I am getting Rs 15000/- p.m and my salary split up is like ;

Basic : 9000/-

Other allowance: 6000/-

In this situation on what I need to calculate my Pf? on Total or on Basic?

As per the PF Act Basic Wage means all my benefit...

Can anyone help me on this situation

break up of 6000 also needed, HRA and Medical Insurance is out of EPF area
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