Confused About PF Calculations? Seeking Help to Understand My Salary Deductions

Clarification on PF Details

As per our salary slip, we are maintaining PF details. In that, the contributions of both the employee and the employer are deducted from our salary. With the help of the salary slip, everyone has maintained the records of PF. The deductions of both the employer and employee have been added and arrived at one figure for the financial year, i.e., March to March. This is how we have maintained our records. Now, we have received our PF slip from the department, and it's confusing.

PF Details Enclosed

Below are the details of PF received from the department for the years 2007-2008, 2008-2009, and 2009-2010:

For the Year 2007-2008
- Opening Balance - Both Employee & Employer & Interest
- Employee: 2729 + 412
- Employer: 1280 + 164

- Contribution During the Year
- Employee: 4752
- Employer: 1456

- Closing Balance
- Employee: 7893
- Employer: 2900

For the Year 2008-2009
- Opening Balance - Both Employee & Employer & Interest
- Employee: 7893 + 869
- Employer: 2900 + 307

- Contribution During the Year
- Employee: 5136
- Employer: 1570

- Closing Balance
- Employee: 19898
- Employer: 4777

For the Year 2009-2010
- Opening Balance - Both Employee & Employer & Interest
- Employee: 13898 + 1383
- Employer: 4777 + 468

- Contribution During the Year
- Employee: 5184
- Employer: 1584

- Closing Balance
- Employee: 20465
- Employer: 6829

I would like to know how it is calculated and what formulas are used for the same. Awaiting seniors to help me.

Regards,
Sapna

Provident Fund and Pension Contribution Clarification

The employee's contribution in your case is 12%, which will go to your Provident Fund (PF) account. The employer's contribution to PF is 3.67%, and the balance of 8.33% goes to the Pension fund. Any employer contributions exceeding Rs. 6500 will be accounted for in the PF account, but in your case, it is not required. Therefore, the PF contribution is 15.67%, and the Pension contribution is 8.33%.

For PF and Pension, interest is paid by the PF authorities on a day-to-day basis and accounted for in your respective accounts. I hope your doubts have been cleared.

Regards,
R. Palaniswamy

Please let me know the percentage of interest calculated on PF for each employee based on their monthly contribution.