Pf Contribution Amount Calculation - Doc Download

I have a query about deduction of PF amount
Is it deducted over basic Salary OR on gross salary.
Suppose an amount of Rs. 500/- is being deducted from the employees salary then How much amount will be deposited in the PF Account by Employer.
Will it be RS.500/- of employee and Rs. 500/- of Employer totaling to Rs. 1000/-.
Also please tell about the interest rate calculation on PF Amount if widrawn after one and half year.
regards
Janmejay Kumar
Jaipur

Hi Jay,
1) PF is deducted on Basic
2) Rs 500 (Employee Contribution) will be deposited in PF account. If 500 is the contribution then taking it as 12% your basic is around Rs 4166
Employer Contribution will be
On Basic Rs 4166 - 3.67 % ie Rs 152 will be deposited in your PF Acc
- 8.33 % ie Rs 347 will be deposited into Pension Acc
This both(3.67 + 8.33) will come as 12 %
So your PF Acc contribution will be Rs 500 + 152 = Rs 652
Hope i am clear

Intrest rate is decalred by Central Govt every year. At present it is 8.5 % for the financial year 2010-11.

Sir,
I want to now that I have resigned a company about five yrs. but I didn,t withdraw my P.F. amount till date. I want to know there is any problem in wtihdraw my PF Claim.

Hi Pramod,
In fact it is better and suggested not to withdraw PF before 5 years because the amount withdrawn is under Taxable Basket and after 5 years it completely Tax free

You don't have any broblem to claim your PF, Just fill out withdrawal form (Form-19 alongwith Form 10-C), attest the form from your employer and submit it to the PF office.
Your claim will be settled within 1.5 to 3 months.
There is a choice for you, if you don't want to withdraw. You can also transfer your fund to your current PF A/c Number.

Hi
If my basic salary is 10000 per month. what is the employer and employee contribution for PF?
Ca you clear my doubt hear with calculation
Thanks
Chris

Hi Chris,
As peryour Basic
Your Contribution is (12% ) - 1200 Rs
Employer Contribution - ( 3.67% ) - 367 Rs
Total - 1567 Rs
You might be thinking what about the rest of Employer contribution out of 12%. Well the rest will be deposited into Pension A/c which you can withdraw on retirement only.

Hi Chris,
The calculation which i gave is for your understanding on the amount. But there is ceiling limit of 6500 Rs. Since your BAsic is above that so
If your employer permits to contribute you more, then the above calculation will go, but employer is liable to pay his contribution only limited on to 6500,
If otherwise
Case 1 : Your Cotribution - 12% (Max 6500) - 780
Employer Contribution - 3.76% (Max 6500) - 239
Total - 1019
Case 2: Your contriibution - 12% (10,000) - 1200
Employer Contribution - 3.76% (Max 6500) - 239
Total - 1439.
It all depends on Organizations Policy. If you have any doubt the post to me.

Dear friends,
EPF contribution is not restricted on basic. Basic,DA,Personal Pay on small family etc. will take into for EPF calculation.
Upto salary of Rs. 6500/-, contribution is statutory. Beyond 6500/- depend upon employer. However the satement that from employer only 3.67% will go to individual EPF account is not fully correct.
For example:-
An employee draws salary of Rs.10,000/- and for full salary employer is contributing to PF. Then total contribution will be 1200/- +1200/- = 2400/-. Amount to Pension Fund will be 8.33% on Rs. 6500/- (statutory), i.e. Rs.541. The contribution from employer @ 3.67% will be 367/-. But here it is 1200-541 = 659.
Therefore the contribution from employer is 3.67% of 6500/- + 12% of balance salary.
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