Sir, If any employee gets a salary of Rs.40,000/- P.M (out of which basic is Rs.20,000/ ) can he deduct PF from his salary, and what will be the employer contribution ... please clarify.

Bablu Paul

From India, Haldia
Advocate Prem Chanda Yadav
Maulik Dave
Hr Professional

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maulik dave

@Bablu Paul,

This shows the Gross Salary is 40K out of which your Basic Salary is 20 K. Actually the exemption limit is 15 K (Basic), Now one can opt-out for no deduction. But if you want to contribute following is the rule.

Employer contribution to EPF: 3.67% of salary. (PF Fund)
Employer contribution to EPS: 8.33% of salary (Pension Fund)

Subject to a ceiling of Rs. 15K salary, i.e. Rs. 1,250. Please note that you can do the full deduction on 20k which is Rs. 1666.

Hope this will clear your doubts.

From India, Ahmedabad
Advocate Prem Chanda Yadav

you can deduct 12% of PF Salary and need to additional Employer contribuiton13% of PF Salary.
From India, Mumbai

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