Understanding PF Deductions: What’s the 8.33% and How to Prepare for Interview Questions?

Hi,

I have PF knowledge that PF is deducted on basic & DA. From the employee's side, the deduction is 12% on Basic & DA, and from the employer's side, the addition is 13.61% on Basic & DA.

Under this, there is an Admin charge (deduction from the company). The Admin Rate is 1.1%, Pen EDLi is 0.01%, and EDLI is 0.5% (EDLI - Employer Deposit Linked Insurance). Now, the total PF remaining is 24%. So, what is the 8.33% deduction?

Can anyone help me on this?

I am appearing for an interview. What kind of questions can be asked about PF and ESI? Who makes PF and ESI challans, we or the PF office? Looking for a quick response. You can directly mail to salonihr@rediffmail.com.

Regards,
Saloni

You are absolutely right about the deduction part. As it goes, the same contribution as you have defined, but the employer contribution goes in such a manner (12% - 8.33% for pension and 3.67% for the PF account). In case an employee leaves the company before completing 6 months, they will not be eligible for the employer's contribution. If an employee works continuously for 9.5 years, they will be eligible for the pension part with an interest of 8.5%. If the employee stops working before the said period, they will not be entitled to the interest pension.

Hope I am clear...

Hi,

In ESI calculation, employee deduction is 1.75% and employer addition is 4.75% on the gross. If the gross is less than 10,000 per month. Is there any other calculation in ESI for knowledge?

Who makes PF and ESI challans, we or the PF office?

Regards,
Saloni

Hi Saloni,

I am enclosing this Word document. I hope it might help you to some extent. The ESI/PF Challans are prepared by the respective corporate offices; they are not prepared by ESI/PF Offices.

All the best,
Mahipal

It is right what you said, that challans are prepared by us, not PF officers. The last date of submitting the ESI challan is the 21st of the preceding month, and for PF, the 15th is the last date.

Please let me know if you need further assistance or clarification.

A casual laborer's daily wage is 150, and he worked for 37.5 days. He received a gross wage of 5625/- for the month of June 2008. How do we deduct PF and ESI on this amount?

Thank you.

Dear All,

Above all, the contents are correct, but employees who leave within 6 months will receive their share of PF + Employer Share of PF, i.e., 3.67%. They can transfer the remaining pension money to another PF account, which may be carried over to another company.

Thank you.

Hi,

In PF, there is an Admin Charge of 1.1%. Can anyone tell me where this admin charge goes? Does it go to the employer's account, the government, or the employee's account?

Thank you.