Provident Fund:
Note: PF is always calculated on BASIC + DA.
Total PF contribution: 25.61%.
Employer's Contribution: 12% (3.67% PF + 8.33% Pension) + 1.61% Administrative charges (1.10% Admin charges + 0.50% EDLIF Charges) = 13.61%.
Note: The Pension value of 8.33% is constant, while the PF value can vary depending on the Basic & DA.
Please study the following cases:
Case 1: If Basic + DA = 6500, then the contribution will be as follows: Pension 8.33% (541) and PF value will be (239).
Case II: If Basic + DA is greater than 6500, then the contribution will be as follows: Pension 8.33% (constant value 541) and PF will be the excess amount - 541. For example, if Basic + DA is 12000/-, then it will be as follows: Pension will be 541/- and PF will be 899/- (calculation: 12000*12% - 541 = 899/-).
Case III: If Basic + DA is less than 6500, then the contribution will be as follows: Pension 8.33% and PF 3.67% of basic + DA. For example, if the basic is 5500/-, then Pension will be 5500*8.33% = 458 and PF will be 5500*3.67% = 202/-.
Employees' Contribution: 12% goes to PF amount only.
Best Regards,
Vibha