Understanding PF Calculation: How to Accurately Compute Contributions and Use the Excel Sheet Provided

Dear All,

I am submitting herewith the combined sheet of PF calculation and challan in Excel format as per the requirement of some HR fellows. I hope it will be useful for you.

Provident Fund:

Note: PF is always calculated on BASIC + DA.
Total PF contribution: 25.61%

Employers Contribution:
12% (3.67% PF + 8.33% Pension) + 1.61% Administrative charges (1.10% Adm charges + 0.50% EDLIF Charges) = 13.61%

Note: Pension value of 8.33% is always constant, whereas PF value can vary depending on the Basic & DA.

Please study the following cases:

Case 1:
If Basic + DA = 6500, then the contribution will be as follows: Pension 8.33% (541) and PF value (239)
Case II:
If Basic + DA > 6500, then the contribution will be as follows: Pension 8.33% (constant value 541) and PF will be: excess amount - 541. For example, if Basic + DA is 12000, then Pension will be 541/- and PF will be 899/-
(calculation: 12000*12% - 541 = 899/-)

Case III:
If Basic + DA < 6500, then the contribution will be as follows: Pension 8.33% and PF 3.67% of basic + DA
Example: if basic is 5500, then Pension will be 5500*8.33% = 458 and PF will be 5500*3.67% = 202/-

Employees Contribution:
12% goes to PF amount only.

PF Calculation Sheet:
1. Mention your location name if existing
2. Number of employees eligible for PF
3. PF salary - Basic + DA amount
4. Employees contribution - 12% fixed value
5. Employers contribution for PF Variable (calculation as defined above)
6. Employers contribution - 8.33% fixed value
7. PF > 6500 means Basic + DA > 6500 (See Case II)

Some other useful info regarding PF:
Form No. Purpose
13 (revised) - For transferring the Provident Fund account of a member from one establishment to another establishment covered under the act/scheme

19 - To be submitted by a member to withdraw his Provident Fund dues on leaving service/retirement/termination.

10-C - For claiming - Refund of Employer share (with form no.19)

10-D - To be submitted by the first claimant i.e., member or widow/widower or orphan nominee as the case may be

31 - For the use of Provident Fund members to avail advances/withdrawals as provided in the scheme

Rate of Interest: 8.5%

Note: If you have any confusion regarding the formulas provided, please let me know. If still confused, I will submit a demo sheet. Please revert back to me.

Thank you.

Thank you for your input. Here is the revised text:

"Thank you very much, Vijeta. I have designed it for easy calculation. Any confusion can be reverted back to me."

Provident Fund:

Note: PF is always calculated on BASIC + DA.

Total PF contribution: 25.61%

Employers' Contribution: 12% (3.67% PF + 8.33% Pension) + 1.61% Administrative charges (1.10% Admin charges + 0.50% EDLIF Charges) = 13.61%

Note: Pension value of 8.33% is always constant, whereas PF value can vary depending on the Basic & DA.

Please study the following cases:

Case 1: If Basic + DA = 6500, then the contribution will be as follows: Pension 8.33% (541) and PF value will be (239).

Case II: If Basic + DA > 6500, then the contribution will be as follows: Pension 8.33% (constant value 541) and PF will be the existing amount - 541. For example, if Basic + DA is 12000/-, then it will be like this: Pension will be 541/- and PF will be 899/- (calculation: 12000*12% - 541 = 899/-).

Case III: If Basic + DA < 6500, then the contribution will be as follows: Pension 8.33% and PF 3.67% of Basic + DA. For example, if Basic is 5500/-, then Pension will be 5500*8.33% = 458 and PF will be 5500*3.67% = 202/-.

Employees' Contribution: 12% goes to PF amount only.

PF Calculation Sheet:

1. Mention your location name if existing.
2. Number of employees eligible for PF.
3. PF salary, which is Basic + DA amount.
4. Employees' contribution, 12% fixed value.
5. Employers' contribution for PF, variable (calculation as defined above).
6. Employers' contribution, 8.33% fixed value.
7. PF > 6500 means Basic + DA > 6500 (See Case II).

Note: Formulas are given in the sheet. Please ask where you are confused, and if still confused, then I will submit a demo sheet&hellip; please revert back to me.

Thank you.

Dear [Recipient's Name],

Thank you for the informative content you provided. It is straightforward and concise, making it accessible to the majority of people. I have a query and would appreciate your assistance. Could you please explain the calculation of the pension offered by the RPFC for an employee who retires upon reaching the age of 58, with a basic salary of Rs. 6500 and a DA of Rs. 1400?

I would be grateful for your response.

Many thanks and regards,

Bhupesh Joshi

Hi Tiwari,

Thanks a lot for the excellent information you provided. It is clear and easy to follow, making it accessible for new individuals.

Once again, I appreciate you sharing the details of PF calculation.

Regards,
Venu

Our business is in steel manufacturing and ingot division. I am interested in understanding the importance of providing workers with proper body protection from heat and flying metals. Specifically, I would like to know if it is necessary to supply leather aprons with full sleeves. What are the regulations regarding this matter?

Regards,
Debajit Roy

Dear All,
This is chandra sekhar, (HR/ Dept.)
Thanks for pf calcu. sheet.to Mr.Abshiek tiwari, I had made sample of sheet with has been used for our company in a sample format purpose i hope you like this & it may helpfull to all.

Regards,
Chandra sekhar
HR.executive
(ROSHNI DEVELOPERS/ INDU GROUP)
9848335631/ 9963144154

Dear All,

I am submitting herewith the combined sheet of PF calculation and challan in Excel format as per the requirement of some HR colleagues. I hope it will be useful for you.

Provident Fund:

Note: PF is always calculated on BASIC + DA.

Total PF contribution: 25.61%

Employers Contribution: 12% (3.67% PF + 8.33% Pension) + 1.61% Administrative charges (1.10% Admin charges + 0.50% EDLIF Charges) = 13.61%

Note: The Pension value of 8.33% is always constant, while the PF value can vary depending on the Basic & DA.

Please study the following cases:

Case 1: If Basic + DA = 6500, then the contribution will be as follows: Pension 8.33% (541) and PF value (239).

Case II: If Basic + DA > 6500, then the contribution will be as follows: Pension 8.33% (constant value 541) and PF will be: excess amount - 541. For example, if Basic + DA is 12000, then it will be as follows: Pension will be 541 and PF will be 899. (Calculation: 12000 * 12% - 541 = 899)

Case III: If Basic + DA < 6500, then the contribution will be as follows: Pension 8.33% and PF 3.67% of Basic + DA. For example, if the basic is 5500, then Pension will be 5500 * 8.33% = 458 and PF will be 5500 * 3.67% = 202.

Employees Contribution: 12% goes to PF amount only.

PF Calculation Sheet:

1. Mention your location name if existing.
2. Number of employees eligible for PF.
3. PF salary, this is Basic + DA amount.
4. Employees contribution of 12% fixed value.
5. Employers contribution for PF variable (calculation as defined above).
6. Employers contribution of 8.33% fixed value.
7. PF > 6500 means Basic + DA > 6500 (See case II).

Note: Formulas are provided. Please ask if you are confused, and if you are still confused, I will submit a demo sheet. Please revert back to me.

Thank you,

Darshan Palkar
Pune

---

Dear Sir,

I want to know how the final amount of PF is calculated, including the interest rate.

My last basic was 6000, and PF was 12%, i.e., 720. I worked there for 9 months.

Then, I want to calculate the final PF amount that I will get as I have submitted the PF withdrawal form.

Please inform me if you know this.

Thanks for your posting.

Darshan Palkar
Pune

Dear Mr. Darshan,

Good question. Your contribution will be as follows: Employer 720/-, Employee 720/-, total contribution 1440/- per month.

Note: The rate of interest on the PF amount is 8.5%.

As asked by some of my HR fellows regarding forms and rate of interest, please find the following details:

Form No. Purpose

13 (revised) - For transferring the Provident Fund account of a member from one establishment to another establishment covered under the act/scheme.

19 - To be submitted by a member to withdraw his Provident Fund dues on leaving service, retirement, or termination.

10-C - For claiming a refund of the Employer's share (with form no. 19).

10-D - To be submitted by the first claimant, i.e., member, widow/widower, or orphan nominee as the case may be.

31 - For the use of Provident Fund members to avail advances/withdrawals as provided in the scheme.

Rate of interest: 8.5%

Dear Abhi,

Could you tell me something about the withdrawal of PF funds? Which part can be withdrawn and what are the necessities to withdraw?

Thanks & Regards,

Rakesh Bisht

Dear Abhisekh Sir,

I am working in the HR Department and am new to the PF field. Could you please clarify some of my doubts as follows:

1. Is there an eligibility age limit for an employee for PF contributions and Pension contributions? If so, what is the limit?

2. What about the deduction applicability of PF and Pension for employees earning more than 6500 basic + DA?

3. What about the deduction applicability of PF and Pension for employees over 58 years old?

4. Our company has no basic limit for PF remittance purposes.

Kindly help.

Regards,

Arabindo Patro
09379187533

Hi Abhisek,

Good and very useful for all newcomers. I would appreciate it if you could focus on gratuity and benefits for employees.

Regards,
Ravi

Dear Mr.Abhi
If an employee is willing to contribute more percentage of amount to PF up to what limit he can contribute and what is the formalities to be met if an employee willing to contribute more percentage than 12%.If an employee whose salary is more than 6500/- month and not willing to contribute for PF is there any provision available for him for doing so.If So How?
Regards
Suman

Dear Abhishek,

Thank you very much for your PF calculation divisions and examples, which really helped me and cleared my long days of confusion and doubt. Once again, thank you for your help.

Regards,
Gopal.

[IMG]https://www.citehr.com/misc.php?do=email_dev&amp;amp;email=Z29waV9pcnBtXz IwMDZAeWFob28uY28uaW4=[/IMG]

Hello,

Could you please let me know about the PF registration rules at the earliest?

1) Is it that if the company has a flat 20 employees - registration is mandatory irrespective of basic?
OR
2) Is it that employees whose basic is less than 6500, if such 20 employees are on the roll, then we have to register for PF?
OR
Is it that now the 6500 slab is revised to Rs. 10,000 for the IT sector?

Could you please give me details of any site which will give the latest PF rules?

Your help would be of great significance.

Thanks,
Shalene

As per the new amendment, registration is mandatory for 10 employees. The current maximum Basic+DA limit is Rs. 6500/- per month. One can seek permission to pay above Rs. 6500/- per month. The slab for the IT sector, I believe, is the same.

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As per the rules, if there are 10 or more employees, then registration is mandatory. The current maximum Basic+DA limit is Rs. 6500/- per month. After reaching the amount of 6500/-, the calculation will be done automatically. There are no such rules to pay above 6500/- per month because I am already working on it. Mine is a construction company, and I have prepared several sheets that are already attached to everyone subscribed to HR site. This was done by me, not by abhi.

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Chandra Sekhar
HR Executive

Hi,

Can I tell you one thing? The PF sheet has been sent by me. I am sorry to say that Abhi has posted a sample sheet. In the same vein, I have corrected and cleared the administration charges, as indicated in the proper challan copy. I have also highlighted my name in the PF wages sheet as K. Chandra Sekhar.

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Dear Sir,

I could not download the PF and calculation sheet. Can you help me?

essceeca

Chandu: As you mentioned that you cannot download the PF sheet, I have just sent you the attachment along with the Excel statement. Please check your email at chandu0147@gmail.com for the information. Feel free to email me with any queries.

Regards,
Chandra Sekhar
9848335631/9963144154

Please answer my query: whether PF deduction is to be made under the PF Miscellaneous Provisions Act if the payment is less than Rs. 6500/-.

Dear all,

Please let me know how to apply for PF for employees and what documents we need to submit.

Hi Chandra Sekhar,

I understand that you had prepared the wages sheet, and I have some additional information regarding the PF application for employees. Once you receive the updated calculation sheet with the new names added, please include the details of new employees in your company. Subsequently, issue a PF number and provide the Employees' Provident Fund Organisation form to the new employees. This form includes the SSN allotment, which you should share with your PF consultant to regularize the PF numbers.

If you are inquiring about PF withdrawal application, you will need to complete the following forms:
1) Form 19 - EPFScheme 1952
2) Form 10C - EPS 1995
Please attach a copy of the SSN form with these documents.

Best Regards,
Chandra Sekhar
Email: chandu0147@gmail.com
Phone: 9848335631

Hi all,

I have some BSC queries. Please shed some light on these.

- Are there any slabs in the pay structure for deducting PF? (Meaning any minimum/maximum basic salary amount, below which PF cannot be deducted)
- How to prepare a salary structure for a new joiner who is supposed to receive an in-hand salary of ₹10,000 (please provide an example).
- Lastly, what are the rules and regulations for ESI? How would it be deducted from the monthly basic pay, and are there also minimum and maximum salary limits for ESI?

I am waiting for feedback from all my helpful friends on CiteHR.

Hello friends,

I want to enter the stock market. Please guide me on how to open an account, how to purchase shares, how to analyze market conditions and company information, how dividend calculations work, and on which value dividends are paid.

Thanks in advance.

Hi Dear,
But what to do in the calculation sheet PF>6500 SHUOLD we enter as 1 or 12000?
Please confirm this.. otherwise you have done a gr8 work thnkx a lot...:icon1:
Priya

Thank you Nayan, Priya, Chandu, Brinal, Bhatti, and thank you to all of you for your appreciation.

Priya, please see Case III. Or, what exactly do you want to know? Please specify, and I will let you know.

Abhi, in the XLS, there is a column where it's mentioned PF>6500. What should we enter in that column? :icon1: Abhi, if you don't mind, can I have your other email ID so that I can be in touch with you for any queries? Thanks a lot again... Priya

Dear Abishek Tiwari,

It was really useful. Thanks for sharing. Please let me know what I should mention in the 7th column (PF>6500). I mean, I am asking for the exact figure that I should put if my Basic plus DA is equal to Rs. 13,802/-. Should I put Rs. 7,302, which is the excess difference between my actual salary and Rs. 6,500? Kindly confirm.

Thanks,
Venkat

May I know how many employees are required for deducting PF & ESI and what should be the salary amount?

Hi Abhi,

Thank you for your help, but I would like to clarify one more thing. What is the full form of EDLIP (A/c 21 = Total basic*.50% which is part of the administrative charges on the employer side)?

Abha Singh

Hi Abhi,

Thank you for your help, but there is one more thing I would like to clarify. What is the full form of EDLIP? (A/c 21 = Total basic * 0.50%, which is part of the administrative charges on the employer's side).

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Abha Singh

Good job but need some modification in the format and please change the word "OFGANISATION" to "ORGANISATION". Otherwise, good.

Hi Saurav,

I have included a formula for the 6500 clause. You only need to input the basic amount; the rest will be calculated automatically. Please share your thoughts on this.

Thank you,
Saurav

Hello Everyone, I have a question. My company is a small-scale company with 10 employees. We are interested in starting a Provident Fund (PF). Could you please inform me if it is possible for us to initiate it? If yes, could you also guide me through the process? If not, kindly explain the reasons why. Please respond at your earliest convenience.

Regards,
Deepali

There is a lot of confusion among many organizations where some take 12% as both EE (Employee's Contribution) and ER (Employer's Contribution), while others take 12% as EE and 13.61% as ER. What is the current percentage rate for EE & ER as per the laws?

Please advise on how to calculate PF if the basic salary is 15,000 per month. Also, advise on eligibility to get PF in Karnataka.

Thank you.

Dear Sir,

Could somebody provide a sample Excel sheet of PF contributions for both employers and employees under different AC numbers for the month of January 2018?

Regards,
Bijay
Email: bijaykumar1981@gmail.com

I am a private school teacher. My total salary is Rs. 9000. I want to calculate EPF on Rs. 6500. Is it possible or not?