Confused About My PF Deduction: Why Is My Contribution Less Than Expected?

Dear All,

I receive a salary of Rs. 7500/-. The salary in hand (after PF deduction) is Rs. 6589/-. I checked with the accounts department of my company, and they are deducting Rs. 780/- each month as my contribution to PF. However, I receive a check (salary in hand) of Rs. 6589/-. I'm puzzled about how they arrived at the figure of Rs. 780. Calculating 12% of Rs. 7500 gives Rs. 900/-.

Your PF is deducted on the amount of ₹6500, as it is the ceiling amount for PF. ₹6500 must be your basic salary, so please check your salary slip.

12% of ₹6500 = ₹780.

Thank you.

PF is deducted at 12% of basic, DA, and RA. The ceiling limit for PF is 12% of Rs 6500, which means it is Rs 780 even if the salary is Rs. 15,000. The employer also contributes a similar percentage of the amount.

Thank you.

Regards

Dear All,

Does anybody have the calculation of the PF monthly challan and the bifurcation of the A/C.01, A/C.10, A/C.21, A/C.22? These are very particular in percentage bifurcation. For example, if the total monthly wages are 3,277,393, what is the interpretation of these accounts?

Understanding PF Monthly Challan and Account Bifurcation

Does anybody have the calculation of the PF monthly challan and the bifurcation of the A/C.01, A/C.10, A/C.21, A/C.22? I am very particular about percentage bifurcation. For example, if the total monthly wages are 3,277,393, what is the interpretation of these accounts?

Hi, Account No. 1 is for PF, where the Employees' share is 12% and Employers' share is 3.67%.

Account No. 2 is Admin charges for PF, where only the employer will contribute 1.1%, and the employee need not contribute.

Account No. 10 is for the Pension Fund, where only the employer will contribute 8.33%, and the employee need not contribute.

Account No. 21 is for the Insurance Fund, where only the employer will contribute 0.5%, and the employee need not contribute.

Account No. 22 is for Admin charges for the Insurance Fund, where only the employer will contribute 0.01%, and the employee need not contribute.