Confused About My PF Withdrawal Amount – Is It Calculated Correctly or Should I Seek Help?

Hello, In my previous company, I worked for 18 months, i.e., from Jan 2009 to Aug 2010. During that period, every month, I contributed Rs. 1900 towards PF. In total, I contributed Rs. 32,400. Upon leaving the company, I opted for PF withdrawal. Today, I received the PF withdrawal amount, which was lower than expected at Rs. 26,777 due to delays in PF withdrawal processing by the HR team in my previous company. I was anticipating a minimum of Rs. 60,000 based on my understanding.

Seeking Clarification on PF Withdrawal Calculation

I am seeking clarification from experts on whether the calculation done by the PF office is accurate or incorrect. If it is incorrect, whom should I contact regarding the remaining amount? Your assistance would be greatly appreciated.

Thank you,

Regards, Anki

I think your company could have taken the maximum ceiling amount of Rs. 780 per month deduction, and the same amount could have been contributed by them.

Regards,
Suresh

Thank you, Sethu and gimsur, for the quick reply.

@sethu - My first-month basic was ₹15,833/- with a PF deduction of ₹1,900/-. The last month's basic was also the same, and the PF deduction remained the same (I received a salary hike in the Special Allowance component while the basic stayed unchanged). Please let me know if you need any more details.

@gimsur - I'm unaware of those details. If that was what happened, then the amount I received was perfect, right? Shouldn't I cross-check further?

Thanks

Dear Anki, Please ensure that you have opted for WB in Form 10C and received both EPF (15.67%) and EPS (8.33%). Check the letter you have received. As the total amount of Rupees 26,777 consists of both EPF and EPS and insurance, your EPF contribution will be roughly 17,485, and the rest (9000+) is from EPS.

Option 1

You have calculated for only 17 months (1900 X 17 = 32,300). Let us assume that the employer had contributed only the statutory amount of 780 (12% of the max Basic of 6500) for all 17 months for both contributions. 780 + 780 X 17 = 26,520. This is approximately equal to the amount you have received (and of course with insurance) as the other member pointed out.

Option 2

Your contribution of 1900 may be entered as 780 as regular and the rest as VPF (Voluntary PF), and the employer contributed 780. Then, 1900 X 17 + (780 X 17) = 45,560, out of which 29,750 is EPF and the rest is EPS. In the case you opted for a Scheme Certificate, the EPF amount is approximately equal to the amount received.

Please check the letter you have received from EPFO and come back to us.

Regards, S. Sethupathy

Dear Anki, Have you received your Form-23 for the year you have worked? Please review that statement and provide the figures. This will be useful for everyone to understand your problem. Mr. Sethupathy has given you the correct picture. Please let us know about your Form-23 (account statement) from PF to get better clarity.

Regards,

Dear Anki, As per the information provided by you, the deduction of 12% amounting to 1900/- from the basic salary is correct. This deduction represents the employee's contribution, to which an equal statutory contribution of 12%, i.e., 780/-, should be made by the employer. The contributions from the employee and employer are allocated as follows:

- Employee: The entire 12% goes into the Provident Fund.
- Employer: 8.33% is allocated to the pension fund, and the remaining 3.67% goes to the Provident Fund.

In your case, the total contributions from both the employee and employer for the 17-month period would amount to: (Employee's contribution assumed to be 1900/-, and ER contribution assumed to be 780/-) (1900 * 17) + (780 * 17) = 45560

Even if you have received 15.67%, the amount should be slightly higher than what you have received. The above calculations do not include the interest component. As mentioned by other members, providing Form 23 for the periods 2009-2010 & 2010-2011 would benefit you and others as well.

Regards, JMK