Dear Sir,
If the employee's basic salary is more than 15000, what are the components we need to consider for PF calculation on the actual gross, not just the 15000 gross?
Basic: 42000
HRA: 21000
Special Allowances: 21000
Is it possible to calculate PF based only on the basic salary like 42000 * 12% = 5040, or should we consider the total of basic, HRA, and Special Allowances like (42000 + 21000) * 12% = 7560?
Which calculation method is correct? Please advise.
Thank you.
From India, Hyderabad
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If the employee's basic salary is more than 15000, what are the components we need to consider for PF calculation on the actual gross, not just the 15000 gross?
Basic: 42000
HRA: 21000
Special Allowances: 21000
Is it possible to calculate PF based only on the basic salary like 42000 * 12% = 5040, or should we consider the total of basic, HRA, and Special Allowances like (42000 + 21000) * 12% = 7560?
Which calculation method is correct? Please advise.
Thank you.
From India, Hyderabad
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Hi In this case PF can be deducted on Rs.15000/- x 12% which is minimum or on actual basic if both employee and employer agrees
From India, Madras
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1015From India, Madras
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls