PF Query - Full & Final Settlement

Dear Seniors,
Greetings for the day!
I have following query regarding PF please provide your best judgment for the same.
In our organisation we are following PF ceiling of Rs. 6500/- for both employer & employee.
Case : Regarding full & final settlement :- One employee having basic 11242/-, in the month of April he worked 10 days (1st to 10th, 10th was the last day) and earned basic salary 3747.33/- . According to our calculation employee PF deduction will be 3747.33*12%=450. But our SAP system showing employee PF deduction 260/- ( 6500 / 30 days * 10 Days*12%). As per the SAP concern person same calculation is applicable in case of midterm joining / leaving. My question is that it is right as per the EPF act. As per my knowledge PF ceiling Rs.6500/- for higher side (in our case) and if earned basic below the ceiling then 12% will be applicable on actual basic ( which is below 6500/-) .
Please provide your best judgments with supportive documents.
Regards
Mahender Singh
9990399830

6500 is a ceiling but is not his Basic. His basic is 11242/-. earned basic should be calculated based on his actual basic not based on 6500.
So I feel your calculation is correct and PF should be 450. configuration in SAP system may have to be changed.
I am also interested to see what other seniors will say about this.

Clearly there is something wrong with your SAP, not with your interpretation. PF is calculated on monthly wage subject to a maximum of Rs 6500/-. Hence the deduction will be Rs. 450/-.

men creates system not system creates men.
so guide your sap people to change the system formula to higher limit @ 6500 and lower as actual.
you are right in your way your system is wrong.
hope i am clear !!

Dear Mahaender,
All senior are correct because PF calculate on Basic salary*working day/Month day*12% for employee PF.
For your Example :-
11242*10/30*12= 450/- is PF amount for your employee.
finally you can check your SAP system calculation is wrong.
Rgds;
Sameer

Dear,
You can show the rest amount of pf in VPF in your system.
Mangesh Wakodkar
Aurangabad

Dear All,
Request to you, if you have any leagl documents about this assumptions. Please provide.
Reg
Mahender Singh

Dear Mahendra
The above are facts, ur sap sytem is calculating on EDLI cealing so uhave to remodify as per the EPF rules and regulations,
Lakshminaryana
9866917232
Statutory consultant