PF Deduction Double Time

Dear Kindly consider Prof Tax of Rs.175/- per month for deduction. Also check the policy of Daily allowance.
Kindly study the labour laws deeply.

Dear Zareen,
Sorry for disturb you again....
I want to know how did u calculate employee PF 720 & employer ESIC 640.
Plz explain in detail.........

Dear

I am giving below two tables showing

1) Pay pocket

2) CTC (Cost to the company)

Any company while recruiting an incumbent, will tell the cost to the company and the candidate has to check with them the Gross pay.

1) Salary in Pay Pocket

Basic 2500

HRA 1450

Edn Allowance 400

Spl. Allowance 3050

Conv. Allowance 800

CCA 250

Med. Allowance 1250

Total Gross 9700

Deduction from Salary

PF @ 12% on Basic only 300

Net pay to the Employee 9400

(Gross - deduction)





2) CTC (Cost to the Company)

Basic 2500

HRA 1450

Edn Allowance 400

Spl. Allowance 3050

Conv.Allowance 800

CCA 250

Med. Allowance 1250

Total Gross 9700

PF Management contribution 300

CTC total 10000

By looking both the tables you can understand there is no mistake in the deduction of PF from the salary. PF deducted from Basic in this case is correct. Please keep in mind his salary is Rs.9700/ only (Basic 2500 + Allowances 7200) & NOT 10000/-

Just for your information, Rs. 300 rupees deducted from his salary will go to his PF account and another Rs.300 (equal amount) paid by the management as Management contribution will go to his Pension account.

In his PF account his contribution alone will get accumulated with interest and management contribution will NOT be added to his account.

V. Selvaraj

Senior Executive (HR)

Hi Rani,
There is a correction in the PF Calculation
Please find the calculations:
PF is calculated on Basic *(i.e Basic + DA)
*Note : this might differ in Salary Structure of Company to Company
Employer's contribution [13.61% = 12% + *1.61% (PF Admin Charges)]of Basic Salary
[Though 1.61 % does not include in Employee Cost to Company]
Employer's PF Contribution here :
Basic = 2500+1450 = 3950
Contribution = 12% of 3950 = Rs.474
ESIC CONTRIBUTION
ESIC is calculated on Monthly Salary Rs. 9700
Employer's ESIC Contribution - [4.75% of Monthly in hand Salary]
Contribution = 4.75% of 9700 = Rs.640
As per my knowledge, there is no Professional Tax applicable for Delhi state.
Hope the Clarification required is resolved, Would appreciate valuable inputs if there is any misunderstanding or any correction is required

Dear,
it is completly right because pf deduction is done only in basis and PF amount is deducting from Total A.
Best Regards,
lakhan Trivedi
0967481106

Thanks everyone for your reply.........
Now Im able to understand the difference & I will tell him about these deductions...............
THANKS
BANDNA RANI

Ms. Bandana Rani,

• Going by the facts given by you, there is nothing wrong in a calculations and payment of your friends salary.
• 12% of basic is employee's contribution, same amount is contributed by employer and it is paid to PF authorities. Obviously employees contribution is deducted from salary but employer will not keep it with him, but will pay to PF authorities.
• If in case you are not a HR Professional, your doubt is understandable. But in case you are HR Professional, better buckle-up and update your basic knowledge.

Hi,
Please let us know if your friends gross salary is Rs. 9700 or Rs. 10,000. If your friends gross is Rs. 10,000 then according to the salary break up his basic salary is Rs. 2500 so Rs. 300 such be deducted from his salary for PF and he gets Rs. 9700 in hand.
In the other case if your friend gross salary is Rs. 9700 then according to the salary break up his basic salary is Rs. 2500 so Rs. 300 such be deducted from his salary for PF and he gets Rs. 9400 in hand.
Hope its clear to you.
- Babu

Dear Seniors,
I want to ask query regarding PF deduction one Emp. have basic 10000 who want to cut pf 10000.if the same please tell us whate is the contribution amount in pf account no-01,A/C-02.A/C10A/C.22.
With regards
Vivek Singh