Understanding PF Calculations: How Does the Central Government's Contribution Work?

Hi, I never calculated PF practically, so please help me in getting my basics correct. Let's say the PF salary is 8000 (i.e., basic + DA).

Employee's contribution at 12% = 960. Now, employer's contribution at 12%, i.e., 8.33% towards the pension fund = 541 (calculated up to a maximum of 6500). Provident fund at 3.67% = 419 towards the provident fund. DLIF at 0.5%, calculated up to a maximum of 6500 = 33. Administrative charges = 0.01% = 1.

Now, here's what is confusing: What is the central government's contribution towards the pension fund? Is it 1.10% or 1.16% and is it calculated on the actual salary or a maximum of up to 6500?

Just clarify and provide me with a figure in this case so I understand it properly.

Warm regards,
Gaurav

Hi Rajeev,

Thank you for the Excel sheet, but I wanted to know how the provident fund and pension fund get split. What is the central government's contribution towards the pension fund, and is it calculated maximum up to 6500?

Please reply.

Thank you.
Warm regards,
Gaurav

Employee PF is 12% of Basic. Employer's contribution is 8.33% for the Pension Fund, with a maximum limit of 541/-. The remainder will be contributed at 3.67% by the employer. Admin charges amount to 1.1% of Salary+DA, while EDLI charges are 0.5% and EDLI Ad charges are 0.005%.

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Generalist HR and IR