Confusion Regarding PF Calculation
I have some confusion regarding PF calculation. Please suggest the best method. Am I right or wrong? Most of our employees' basic salary is above ₹10,000/-, so we have set the limit for PF deduction at ₹6,500/- for both. Accordingly, our software calculates ₹780/- as the PF amount for both parts (employee and employer).
The problem arises when an employee has a basic salary of ₹15,000/- and only works for 20 days in a month. What should be the PF amount? Should it be ₹780/- or (₹780/30)*20 = ₹520/- as per the PF Act?
Regards,
Mukesh Singh
I have some confusion regarding PF calculation. Please suggest the best method. Am I right or wrong? Most of our employees' basic salary is above ₹10,000/-, so we have set the limit for PF deduction at ₹6,500/- for both. Accordingly, our software calculates ₹780/- as the PF amount for both parts (employee and employer).
The problem arises when an employee has a basic salary of ₹15,000/- and only works for 20 days in a month. What should be the PF amount? Should it be ₹780/- or (₹780/30)*20 = ₹520/- as per the PF Act?
Regards,
Mukesh Singh