If one employee draws more than 15000 basic salary, if he resigned between the months or is absent then what will be the EPF salary calculation.
Maximum basic salary 15000 will be calculated to present days or the original basic salary which is under 15000 in that month.
26th July 2019 From India, Kochi
Hi Vinod
it will be calculated to earned basic salary .
Regards
Prabu M
26th July 2019 From India, Chennai
So if earned basic salary above 15000 we have to take 15000 itself right.
26th July 2019 From India, Kochi
PROVIDENT FUND (PF)
Employees’ Provident Fund is a small saving scheme that is offered to Indian workers as well as international workers through the EPFO of India. The scheme allows accumulation of funds as well as accrual of interest on the accumulated funds. The funds thus collected are made of contributions partly from employees and partly from their employers.
Contributions from employees as well as employers add to the EPF. However, unlike what is commonly thought to be, the entire portion of contribution from an employer doesn’t go exclusively towards the Employees Provident Fund.
Division of funds
1. 12% of Basic Salary and standard allowance of Employee goes directly towards Employees’ Provident Fund.
2. 13% of Basic Salary and standard allowance of Employer is divided as follows –
o 3.67% of contribution towards Employees’ Provident Fund
o 0.5% of contribution towards EPF Administration Charges
o 0.5% of contribution towards EDLI Administration Charges
o 8.33% of contribution towards Employees’ Pension Scheme
Minimum salary limits: Employees with monthly salaries less than or equal to INR 15,000 now have to contribute mandatory towards EPF. PF amount is calculated for the basic amount. PF will be calculated as 12% of the basic.
Provident Fund Calculator
Basic Pay
25000 /Month
PF Contribution
Employee
12% of 15,000: ₹1,800.00
Employer
13% of 15,000: ₹1,950.00
Total
₹3,750.00
26th July 2019 From India
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