1) P.F. Deducted on Basic + D.A + Cash value of Food Allowance @ 12%. It is a statutory deduction. D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
2) Company pays P.F on either actual basic or Capped Basic. Capped basic decided depend on Company rules it is not restricted. It’s applicable those employee basic exceeds Rs. 6500/- only.
3) Employers and Employee Contribution is equal in P.F which 12%. This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts. 8.33 % on Family pension Fund and 3.67 % on Employee Provident Fund.
4) Employer also needs to pay additional charges on every month over and above PF Company Contribution. The break up is
1.1% P.F Administration Charges,
0.5 % on Employee Deposit Linked Insurance (E.D. L.I) and
0.01% E.D.L.I Administration Charges.