PF - Baic Pf [Thread 265407]

There's a debate going on in my office regarding PF. Is PF cut on basic salary or salary drawn?? Please guide.
Keya

Dear Friend,
P.F should deduct on Basic + DA @ 12%, not on Salary Drawn. Generally Pvt. Companies will not give DA, Government employees either State or Central gets DA.
Employer has to pay the same contribution @ 12% on employee contribution.
I think you may clear now.
Regards,
Sravan

Hi,
The rate of contribution is 12% of emoluments ie.basic wages, dearness allowance, cash value of food concession and retaining allowances if any,
regards
Ashish

Dear All,
Please let me know one thing that recently a fresher had joined our company , he says that he doesn't want his deduction of PF from his salary .
he says that he will give the self attested declaration in regards to that .
Please let me know that can he will have the right to do this .
how long jhe will continue with non deduction of PF from his salary .

Dear Keya,
PF is deducted neither on Basic salary nor on Gross Salary drawn.
For PF deduction purpose salary means Basic + DA.
PF is deducted on (Basic + DA) * 12%
Basic + DA do not mean your Basic + DA salary fixed by the company.
Basic + DA Mean what Basic + DA you have earned during the month.
For Example your Basic salary is Rs. 5000 and DA is Rs. 2000
You have received salary for 25 days.
In this case
your Baisc salary received / earned is Rs. 4167.00 and DA received / earned is Rs. 1667.00 and PF will be deducted @12% on Rs. (4167+1667=5834)
PF deduction amount will be Rs. 5834 * 12% = Rs. 700
I hope it will clear your doubt.
Regards
Modi Ashok Kumar
9986452168

The deduction of PF is depend upon company's policy. If according to policy a freasher is designated as a trainee then no PF deduction will be made unless his training period is completed.
Regards,
Ramesh Pandey

hiiiiiiiiiiiiiii keya, Epf is deducted from basic salary not from withdrawn salary,
siddharth
9711560811

pf is deducting on basic + da as per definition of wages. It is is social security benefit. If da is not there, consider only basic salary. Please note that all statutory deduction are applicable on basic and da under provision of wages.
Vdpatel

Dear all
in simple terms the contribution are below as
if ur salary is 7000
basic 4200
hra 800
conveyance 1000
other benefit 1000
gross salary 7000
p.f @12% on basic 504 employee contribution
e.s.i @1.75%on gross 122
ctc 7626
p.f @13.61% on basic 571 employer contribution
e.s.i @4.75%on gross 332
take home 6723

But the Candidate is not recruited as a trainee, He told that if he will giving the declaration then he is not wanted PF deduction alongwith FORM - 11 than he opt for non- deduction of PF amount .
Can company will consider his request or not ? And if Yes than how long he will continue with Non Deduction.
:)