Salary Deduction Confusion: Is PF Calculated on Actual or Received Salary?

Hi, my salary is $10,500. After a leave deduction for 2 days, I received $9,800. How would PF be deducted - on the basic received salary or the actual basic salary?

PF does not vary every month. It is calculated based on your basic salary. Therefore, your PF deduction will be as per your actual basic salary.

Thank you.

Dear Suruchi,

I don't think so. How can PF be deducted on actual basic? Let's take an example of an employee. If he took 15 days' leave, all without pay, will the company pay him the actual basic? No. As per my knowledge, PF may vary every month based on the payable days. This deduction affects all components of salary such as HRA, basic, TA, and DA, etc. When basic is lower than actual, then obviously PF will be lower than the actual one. I hope it's clear. I'm expecting more reviews on the same.

Dear Neesu/Suruchi,

Greetings for the day :)

PF is always deducted on the basis of Basic salary, and if the number of days differs from month to month, then it will be calculated on a pro-rata basis.

You both are right in your places, but if you merge your statements, then it will be complete.

PF deductions will be made on Basic Wage + DA earned during the month based on the number of days worked.

Vasant Nair

Dear HR,

Greetings for the day :)

Your desired details are as follows:

A/C 1 - 12% (Employee contribution) + 3.67% (Employer contribution)
A/C 10 - 8.33% (Employer contribution)
A/C 2 - 1.10% (Admin charges)
A/C 21 - 0.50% (EDLI charges)
A/C 22 - 0.01% (EDLI & Admin Charges)

Thus, the employee contribution is only 12% from his/her Basic+DA, whereas the employer contribution is up to 13.61%, including EDLI & Admin charges as mentioned above.

Dear Sapna,

Greetings for the day:)

I didn't understand the concept given by you for PF calculation. Could you please explain?

Can I have your contact details so that I can contact you, and then we can discuss the same?

Respected all,

What are the benefits after completing 10 years for PF? How is PF office calculated Pension money and PF Money?

Thank you and Regards,
Kuldeep
HEMA Group