Understanding PF Deductions: How Do You Calculate Them and What Are the Minimum Wage Slabs?

Dear all,

Can anybody tell me how to calculate the PF and what the minimum wage slab is?

Thank you.

Dear,

If an employee is getting Basic+DA less than 6500 at the time of joining, then 12% of it is to be deducted as PF, and the employer will also be required to pay 12% of Basic+DA as an employer contribution.

Regards,
J S Malik

Adding to Mr. Malik's post.

If an employee is getting Basic + DA more than 6500, then the employee has to pay 12% on his basic, but the employer can freeze it to 6500 itself.

PF Calculation:
For Less than 6500
Consider an X employee basic is 5000
Employee Contribution 12%: 600
Employer Contribution
EPF (3.67%): 183
EPS (8.33%): 417
EPF Admin Charges (1.10%): 55
EDLI Account (0.50%): 25
EDLI Admin Charges (0.01%): 1

Consider an X employee basic is 10000
EPF (3.67%): 659
EPS (8.33%): 541 (EPS should be calculated on 6500; the remaining amount should be added to the EPF account)
EPF Admin Charges (1.10%): 110
EDLI Account (0.50%): 33
EDLI Admin Charges (0.01%): 1