Understanding PF Contributions: How to Calculate for 20 Days Worked Out of 26?

Respected Seniors, if any employee has worked 20 days out of 26 days, then what should be his PF contribution if his basic + DA is Rs. 7000/-? Please guide me.

Regards,
Santosh Singh
[Phone Number Removed For Privacy Reasons]

If you are contributing 12% on actual Basic + DA, the actual Basic + DA for the month is 7000. The payable Basic + DA for working days is calculated as 20/26 * 7000 = 5385 (rounded off to the nearest decimal). PF is on a pro-rata basis, so 12% of payable Basic + DA - 12% of 5385 equals 646.2, rounded off to 646.

If you are contributing to the maximum limit of 6500 per month as prescribed by the act, the monthly limit of Basic + DA is 6500. Therefore, for 20 days, it amounts to 20/26 * 6500 = 5000. Thus, PF for the said period is 12% of 5000, which equals 600.

Hope this helps.