PF - Employee Pf [Thread 268187]

Hi HR Experts
Suppose one employee having monthly salary Rs 8000, but dut to absentism he came only for 20 day so as his net paid amount (Rs 5500) wil be below PF limit(Rs 6500).
My question is that, is this employee has to pay PF amount?
Please reply me as soon as possible

I hope the month in question is the month during which he joined or he is an excluded employee with a salary at his joining as Rs 8000 (more than Rs 6500). If so, if for 20 days he has earned only Rs 5500 he need not be covered.
Regards,
Madhu.T.K

No, PF is not deducted on the earned salary. Exemption of PF is applicable where Basic salary rate of an employee is greater than 6500/-. Even if he earned less than 6500/- due to any leave his PF will not be deducted.

Hi Chirag,
PF is deducted on BASIC
Again the basic depends as per the minimum wages act.
On 8000/- Gross, if 40% Basic 3200/- & PF 12% Rs 384/-
However, he/she has worked for 20 days.
hence, 8000/30*20 = 5333 ( Gross )
So, Basic : 5333*40% = 2133
PF : 2133 * 12% = 260
PT will be 175 ( Maharshtra )
ESI : 5333* 1.75% = 93.
However, if your company gives SL from the DOJ then he can avail 6 SL by providing Dr Certifc. then his paid days will be 20 + 6 = 26
Then as per the above calcu you can derive to his gross & net.
I hope I have tried to make it simple & clear with example

Since already he is an excluded employee no need to cover him just due to the fact that he earned only less than Rs 6500 during a particular month.
Dear Gaurav,
There is no such ruling that 30% or 40% or such other percentage should be treated as basic salary. It may be a practice in your establishment and may not be the same in all establishment and there is no rigid rule which says about it.
Regards,
Madhu.T.K

pf deduction salary Rs.5500/- for submitting return you have to show breaking service.
vijay s

Hi HR Experts
anybody pl send how to subbmit pf returns pl send in Excel format.
pl send as soon as possible
Regards
Rao

If monthly salary is 8000, then his 20days salary will 5333. Now 30% of 5333 is 1599. He will have to pay 32/- on pf and 94/- on esi
Sanjeev

Hi ,
I am agree with Gaurav,
PF calculation is on BASIC & D.A it is 12% Maximum Pf deduction is 780/- as per PF act .
If any employee can work 1 day pf should de deducted as per pf act. on Basic & DA
Regards
Dashrath

Let me once again say that if an excluded employee's salary for any month is short of Rs 6500 due to Loss of Pay, please do not get him into coverage because once covered he will be covered for the rest of the service.
I also do not agree with 30% of salary. There is no such calculation.
Regards,
Madhu.T.K