Need some help while preparing the salary breakup.
1) If the PF ceiling is there (1800/-), can the basic be above 15000/-?
2) Is it necessary to keep the PF contribution at 12% of basic, or can I keep the PF contribution at 1800/- and the basic could be any amount greater than 15000/-?
From India, Pune
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1) If the PF ceiling is there (1800/-), can the basic be above 15000/-?
2) Is it necessary to keep the PF contribution at 12% of basic, or can I keep the PF contribution at 1800/- and the basic could be any amount greater than 15000/-?
From India, Pune
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The statutory limit for Provident Fund deduction is Rs. 15,000/- (salary), which translates to Rs. 1,800/- as PF contribution. You have the freedom to deduct above Rs. 15,000/- and remit it to the PF fund, but that will apply only to the employees' share. The employer's share is fixed at 12% of Rs. 15,000/- salary only.
From India, Aizawl
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651From India, Aizawl
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There are organizations in India that are paying PF contributions above ₹15,000 per month as the employer's share. If the organization has the capacity to pay, then the organization may also deposit PF contributions above ₹15,000.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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Hi there,
I can help you with preparing the salary breakup.
1) If the PF ceiling is at 1800/-, can the basic be above 15000/-?
2) Is it necessary to keep the PF contribution at 12% of the basic? Or can I keep the PF contribution at 1800/- and have the basic be any amount greater than 15000/-?
1. The basic can indeed be above 15K. When calculating PF, we clearly mention the EPF Wages and EPS wages, which are limited to 15K.
2. PF is typically calculated on Basic + DA. Due to the Minimum Wages Act, the basic and DA should fall within the minimum wages limit.
Please let me know if you need further assistance with this.
From India, Kochi
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I can help you with preparing the salary breakup.
1) If the PF ceiling is at 1800/-, can the basic be above 15000/-?
2) Is it necessary to keep the PF contribution at 12% of the basic? Or can I keep the PF contribution at 1800/- and have the basic be any amount greater than 15000/-?
1. The basic can indeed be above 15K. When calculating PF, we clearly mention the EPF Wages and EPS wages, which are limited to 15K.
2. PF is typically calculated on Basic + DA. Due to the Minimum Wages Act, the basic and DA should fall within the minimum wages limit.
Please let me know if you need further assistance with this.
From India, Kochi
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls
Typical salary breakup.jpg