Confused About PF Deduction for Low Basic Salary? Let's Clarify the Calculation!

PF Deduction Calculation Query

I am encountering an issue with PF Deduction. If Mr. A's earned basic salary in July is 3000 Rs, how should we calculate the PF deduction? Is it calculated as 3000 * 12/100, resulting in a PF amount of 360 Rs? Or is it calculated as 6500 * worked days/working days * 12% = 251 Rs PF amount?

I am asking in the scenario where someone earns less than 6500 Rs as a basic salary. In such cases, can we consider the total earned amount, or is there another method we should follow?

Regards

PF contribution is applicable on earned Basic + DA (if any) at 12%. Furthermore, it should be considered when creating the salary breakdown that Basic + DA should be below the minimum wages applicable for the specified grade of employee.

For example, if A's Basic + DA is Rs. 4500 for a month and he worked for 28 days, then Rs. 4200 will be used for the calculation of PF contribution. The PF amount will be Rs. 504.