The Provident Fund contribution is the employee's 12% of his/her basic salary. The employer also has to contribute their part to the employee provident fund.
For Provident Fund Calculation: The maximum limit for the PF calculation would be 6500 on to an employee's basic. It means even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However, if an employee so desires, he may voluntarily contribute more than 12%. Apart from it, an employer also has to pay some administration charges. I will explain the various accounts of the PF challan.
A/c No 1: PF contribution Account A/c No 2: PF Admin account A/c No 10: EPS account A/c No 21: EDLIS account A/c No 22: EDLIS admin account
PF admin charge: The employer has to pay 1.1% of basic EDLIS: The employer has to pay 0.5% of basic EDLIS admin charge: The employer has to pay 0.01% of basic
The total additional percentage the employer has to pay is 1.61% of basic. So the payment for the employer would be 13.61% of basic, and the payment for the employee would be 12% of basic.
The employee's payment of 12% of the basic completely goes to the PF account. The employer's Payment of 8.33% goes to the Pension fund, and 3.67% goes to the PF fund.
For Provident Fund Calculation: The maximum limit for the PF calculation would be 6500 on to an employee's basic. It means even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However, if an employee so desires, he may voluntarily contribute more than 12%. Apart from it, an employer also has to pay some administration charges. I will explain the various accounts of the PF challan.
A/c No 1: PF contribution Account A/c No 2: PF Admin account A/c No 10: EPS account A/c No 21: EDLIS account A/c No 22: EDLIS admin account
PF admin charge: The employer has to pay 1.1% of basic EDLIS: The employer has to pay 0.5% of basic EDLIS admin charge: The employer has to pay 0.01% of basic
The total additional percentage the employer has to pay is 1.61% of basic. So the payment for the employer would be 13.61% of basic, and the payment for the employee would be 12% of basic.
The employee's payment of 12% of the basic completely goes to the PF account. The employer's Payment of 8.33% goes to the Pension fund, and 3.67% goes to the PF fund.