Understanding PF Deductions: What Are the Key Components and Is DA Daily or Dearness Allowance?

Dear All,

As per me, PF deduction is made on Basic+DA. Here, what is DA? Is it Daily Allowance or Dearness Allowance? Which two heads are required to deduct PF Contribution? Is PF deduction made in EL encashment? Will you please clarify for me?

Regards,
Neelender

Hi Neelender,

PF will be calculated on Basic, DA, VDA, and Food Allowance (should be paid constantly). Here, DA means Dearness Allowance only.

As per the recent amendments, PF will not be deducted on EL encashment because EL encashment amount is not a part of the salary.

If you have any more queries, you can revert. Thank you.

With Best Regards,
Hanuman

Dear Hanuman,

For PF deduction requirements, the basics include Basic Pay, Dearness Allowance (DA), food concession (if any), and any other allowances not explicitly defined, such as special allowance or extra work allowance.

Thanks & regards,

Sumit Kumar Saxena
9899669071, 0120-4131277

Dear Neelander,

Please study the relevant provisions of the PF Act & Rules, and you will find the answer you are seeking.

Cheers!!!

Vasant Nair

Dear All,

1) PF needs to be deducted on Basic + Dearness Allowance.
2) As per the recent amendments, PF will not be deducted on Leave Encashment. Please refer to the link below: qrydisp

Thanks,
Sylvester