Confused About PF Admin Charges? Should I Calculate on Full Salary or Ceiling Amount?

dineshpillai
Dear Seniors,

Greetings for the day. We are deducting P.F. contributions above the ceiling (₹6,500). If an employee is getting ₹10,000 as PF salary, we are remitting the whole amount (i.e., ₹10,000 * 12%) to EPFC (EE 12% + ER 13.61%).

Example:
Dinesh's P.F. Salary is ₹10,000.00
P.F. ceiling is ₹6,500.00

My question is, should I calculate the Admin Charges (1.1%) for ₹10,000/- or can I calculate for ₹6,500/-? What figure should I remit to EPFC, either ₹100/- or ₹71.5? Why shouldn't I go for ₹71.5? Please clear my question.

Regards,
Dinesh L
abbasiti
If your contribution is based on the actual salary, the administration charges should also be based on the actual salary.

Regards,
Abbas.P.S
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute