Confused About Calculating A/c Numbers? Let's Clarify This Together

Hello sir/madam,

In this discussion, you have only suggested A/c numbers 1, 2, 10, 21, 22. However, there are additional A/c numbers 1, 10, 21 at the top. How should I calculate them? Please clarify my doubts.

Regards,
Vijaya

Hello Madam,

In PF challans, can you please explain to me about the total number of subscribers and total wages due?

Regards,
Vijaya

Hi Vijaya,

For example, 20 employees are working in an organization. All the 20 employees have to contribute to the PF account. We have to take each employee's Basic + DA, and we have to total all the employees' Basic + DA. That will be the Total wages, and the number of subscribers will be 20.

I think your doubts have been cleared.

Warmest Regards,
Mohan.M.S
91+98846-39526

Dear Vijay,

We are calculating the following:

A/C No. 1 - EPF Fund (All the members' total basic + DA)

A/C No. 10 - Pension Fund (All the members' basic + DA)

Dear Vijay,

Regarding the accounts:

- Ac No. 1: Employee 12% + Employer 3.67%
- Ac No. 2: Employer 8.33%
- Ac No. 10: Employer 1.01%
- Ac No. 21: Employer 1.67%
- Ac No. 22: Employer 0.05%

For further clarification, please email your questions to [Login to view].

Riyaz

In one interview, the interviewer asked me about how many acts are in Indian Labor law. I had replied that I only know of 5 acts, but he told me that there are actually ten (10) labor acts in labor law. Is that true?

Please increase my knowledge.

Riyaz

Hi Friend,

Regarding PF Contribution - Employer should pay 12% of Basic salary, in which 8.33% will go to the Pension Scheme, and the remaining 3.67% will go to PF.

When calculating the Pension Scheme, the employer should pay 8.33% of the basic salary (up to Rs. 6500, i.e., Rs. 541), with any amount beyond that going to PF.

For example, if the employee's Basic salary is Rs. 8000, Rs. 541 (8.33%) will go to the pension scheme, and Rs. 419 will go to PF. However, the employer must contribute 12% of the basic salary, regardless of the amount.

Employee contribution of 12% from the basic salary is mandatory as per the PF act.

Rate of Contribution

Regardless of the company, the contributions are as follows:

Employee 12% (Basic wages, dearness allowance)
Employer 13.61% Contribution:
- 3.67% = Provident Fund (A/c No.1)
- 8.33% = Pension Fund (A/c No.10)
- 0.5% = EDLIS - Employees Direct Linked Insurance Scheme (A/c No.21)

Administrative Charges:
- 1.10% of emoluments = Provident Fund (A/c No.2)
- 0.01% of emoluments = EDLIS (A/c No.22)

Total: 25.61%

Warmest Regards,
Mohan.M.S

Hi Suhrita,

For example, if an employee's basic salary is 8000, we will deduct 12% from his/her basic, which will be 960/-. You have to pay 541/- into his/her pension account, and the remaining 419 will be accounted for in PF.

I think your query has been cleared.

Warmest Regards,
Mohan.M.S

Dear Friends,

I am sorry to say that my doubt has not yet been cleared. In the PF Challan, they have mentioned Total wages due (A/c. 1, A/c 10, A/c 21). How do I calculate this? Please reply to me.

Hi Vijaya,

In your organization, how many employees are working? For example, let's say 50. You will be deducting PF for each employee, which will be 12% from the Basic & DA.

For example, Vijaya, if your basic is 5000, and your DA is 1500, the total will be 6500. From 6500, you will be paying your PF contribution, which will be 6500*12% = 780.

You will calculate this for each employee. If we consider 50 employees, with each contributing the same 6500 as basic & DA, the total amount will be 3,25,000 as the sum of total wages due. This total wages due is 3,25,000/-. The total number of subscribers is 50/-.

From the 3,25,000 total amount, you have to contribute 12% towards the PF account, which means you will be paying 39,000/-.

I hope your doubts have been cleared. If you have any other queries, please don't hesitate to call me.

Warmest Regards,
Mohan M. S.
91+98846-39526

Dear Vijay,

Ac No. 1: Employee 12% (on BA+DA + Employer 3.67%)
Ac No. 2: Employer contribution towards Administrative Charges
Ac No. 10: Pension Fund (ceiling limit to BA+DA 6500= Rs.541 is the maximum to pension). If the employee draws 10000 BA+DA, 541 will go to the Pension Fund, and the remaining amount, i.e., Rs.659, to the Provident Fund.
Ac No. 21: Employees Deposit-linked Insurance (i.e., 0.5% BA+DA on Rs.6500 to be considered).
Ac No. 22: Inspection Charges (0.01% on Rs.6500 BA+DA to be considered).

Email: jayakumar.raju@gmail.com
Y.M. Jaya Kumar Raju
Mobile: +91 9972567977
Bangalore

Hi Vijaya,

The total percentage of the EPF is 25.61%:
- Employee contribution is 12%
- Employer contribution is 12%
- Other charges such as admin charge, EDLI charge, etc.

Account details:
- A/c no:1 = Employee contribution 12% & 3.67% employer contribution
- A/c no:2 = 1.1% admin charge
- A/c 10: Employer contribution for the pension fund is 8.33%
- A/c 21: 0.5% for EDLI charge
- A/c 22: 0.01% for admin charge for EDLI

I hope this information is useful to you.

Goodbye!
N. Madhu:icon1:

Dear Vijaya,

If your company has 30 employees, but you are only paying PF for 20 members (assuming), then the total wages will be 20 members' BASIC + DA.

E.P.F. A/c No.01
- 12% Employee Contribution
- 3.67% Employer Contribution

Pension Funds A/c No. 10
- 8.33% Employer Contribution

Admin Charges A/c No.2
- 1.1% Employer Contribution (for A/c No. 1, both employee and employer contribution)

EDLI Charges A/c No. 21
- 0.50% Employer Contribution

Admin Charges A/c No. 22
- 0.01% Employer Contribution (for A/c No. 21)

Regards,

VIJAYA BHASKAR

kvb1008@gmail.com