About Pf Deduction - Pf Deductions [Thread 390680]

dear sir,
i would like to know about pf deduction process sir i am working in engg company as a hr we deducting pf only on basic /12% we are not adding DA In it so i want know is there is any rule that u have to DA compulsary & also if we want to make limit in pf deduction what is the provision for it ca you help me to solve this quiry avaiting reply.
regards
raju

Yes, you have to add DA for deducting PF.
Basic wage is nothing but Basic +DA.
As per the PF Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. & retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.