Please help me in calculation of current PF contribution (2019-20) for both employee and employee.
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Hi Partner,
The query here is actually quite a wide one. If there is any specific area to be focused on, you could let us know. On a general note, if the basic salary is above Rs.15,000/- per month, the employee PF contribution would be at 12% of the basic salary, while the employer contribution would be at 12% of the basic salary as well. But the employer contribution of 12% could be broken up into 8.33% + 3.67% = 12%. Here 8.33% of the basic is meant to be contributed to the EPS or employee pension scheme while the other 3.67% is contributed to the PF scheme.
So, for an employee out of the 12% (employee contribution) + 12% (employer contribution) = 24%, it is 12% + 3.67% = 15.67% that gets contributed to the PF, while the other 8.33% gets contributed to the employee pension scheme (EPS). If the 8.33% pension contribution exceeds Rs.1250/-, then this is capped at Rs.1250/- and the rest of the amount directed to the PF fund.
If the employee's monthly basic salary is less than Rs.15,000/- per month, then the PF contribution percentage would be based on the basic salary and also allowances deemed as part of the wages, with the same percentage principles mentioned above.
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