Hi, I joined a company on 27 January 2021. Gross salary 23,000/- per month and Deductions (PF+PT) 2,000. So the Take home comes to 21,000/- per month.

The company has paid me for January 2021 for 5 days i.e from 27 to 31 January 2021 Rs.3,366/- and deposited PF for Rs.344/-

I want to understand how the company has calculated Rs.344/- as PF amount?
Also, How they calculated the basic salary for that January 2021 month?

Per Month break up excluding employer PF contribution

Basic 10500
HRA 5250
Other Allowances 7250

From India, Hyderabad
HR Professional
Retd Hr Professional

Dear member,
Your basic salary is Rs. 10500/-p.m.
In Jan 2021, you have worked for 5 days.
Your basic salary ÷31×5 days,
you will get basic salary proportionately for 5 days. On this 12% will be the your PF share.
Pls discuss with employer

From India, Bengaluru
Thank you Dear for the response.
From India, Hyderabad
Your employer has calculated 344 on five days Basic plus Other allowances. (10,500+7,250) x 5/31 = 2,863 PF 12% of 2,863 = 344
From India, Delhi
Can they do that? PF should be calculated for bais salary only right? Then in this case why they added Allowances to Basic salary?
From India, Hyderabad
PF is % of Basic plus DA.
Basic = Total cash salary - (DA + Food allowance + HRA + Bonus + Commission + Overtime + Gifts + other similar items).

In your case, 'other allowance' is a debated area whether this is one of the items in the brackets above or not.

So, as per the recent Supreme Court ruling in The Regional Provident Fund vs Vivekananda Vidyamandir on 28 February 2019, PF is deducted on total wages excluding only specified items.

I think I have quoted the relevant case law. Please correct me; if I am wrong.

From India, Delhi
Thank you Neo for the Information.....
From India, Hyderabad

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