The PF calculation is Basic+da x 12 % for Employee and
Basic+da x 13% for employer.
where in employer contribution,
12% of 8.33% upto 1250 goes to EPS i.e Pension account A/c10
3.67% to balance of 12% goes to employer contribution i.e A/c 1
0.5% not less than 500 goes to PF administration charges paid by employer A/c 2
0.5% goes to EDLI i.e Employee Deposit Linked Insurance. A/c.21
12% share of employee goes to employee contribution i.e a/c 1
Sr.Consultant (Labour Law)
7th August 2019 From India, Chennai
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.
12% of 15,000: ₹1,800.00
13% of 15,000: ₹1,950.00
For more info or PF,ESI,Payroll,Gratuity calculator. Visit : www.sumopayroll.com
7th August 2019 From India