PF Distribution

Dear All
Kindly let me know that PF deduction is 12% on basic. But how much of this 12% is going in PF account and how much % is going in pension account.

Hi
The following will help you to understand it in a better way
There are three accounts in the calculation of PF
1.EPF-The Employees' Provident Fund Scheme
2.EPS-The Employees' Pension Scheme
3.EDLI-Employees' Deposit Linked Insurance Scheme
For the calculation of EPF-12% of Employee contribution is added and 3.67% from employer's contribution
For the calculation of EPS- 8.33% will go for Pension from Employer contribution and
For EDLI-1.61% from Employer contribution
1.1% Admin charges For EPS and EPF
0.5% EDLI Premium
0.01% Admin charges for EDLI

Dear
First of all thanks for sparing time to reply my query. But still my answer is not cleared. PF share of EMployee and employer is same i.e. 12% of basic. but according to your employer share is 13.61%.
Now my question is employer is paying much then employee.
second EPF, EPS and EDLI charges will be deducted from which account : Employer or Employee.
After leaving how much % we will get from PF account as 24% deposit in PF account monthly.
For more clarification you can also contact to me 9781001077.

Dear Simran420,
u r correct that the contribution amount of both the employee and employer is 12% on PF. however an amount of 13.61% is deducted from the employees salary.
So this additional 1.61% is the administration charge bourn by employee only. But your final remuneration will be based upon your 12% contribution.

No employee has to contribute 12% only. Employee will pay 13.61% to PF. If there is exempted Trust, percentage of employer share will differ.
Abbas.P.S

Dear friends,
I am unable to edit the above posting. Please read it as below. . . . .
No, the employee has to contribute 12% only. Employer will pay 13.61% to PF. If there is exempted Trust, percentage of employer share will differ. Abbas.P.S

Hi Abbas ,
Thanks for the PF breakup details. Have a quick query, is the 1.61% to be borne by the Employee or by the Employer. As per the current Salary structure prevailing in the companies , the Employer contribution as well as Employee contribution is deducted from CTC . Does that mean the the part of Employer contribution i.e . 1.61% is also to be deducted from Employee CTC.

Simran,
Here is the clarification to your query
1. Employee's Contribution - 12% of the (Basic +DA) subject to maximum of Rs.6500 Salary amount - This amount is also allowable as deduction from Gross Total Income u/s80C of Income Tax
2. Employer's Contribution - 13.61% The breakup as follows -
3.67% - PF Account
8.33% - Pension Account
0.50% - Employees Deposit Linked Insurance Account (EDLI)
1.11% - Administrative Charges of managing these accounts.
So eventually we pay 15.67% to PF Account
Hope that helps

Dear All
Thanks to all of you for replying.
Dear Mr. Darshan Balai : I think 15.67% has been mentioned by you wrongly. It should be 13.61% right.
All mentioned that one share will be 13.61% but in CTC both parties deposit equal share i.e.12%.
At the end it concludes either employee or employer will pay 12.61%, employee will get the pf amount after deducting 1.61% of all amount. As example :
Suppose Employee A basic salary is Rs.1000 pm and pf amount on 1000/- will be Rs.120/ one share.
Monthly deposit will be 120+120 = 240.00.
After a year A has left the job and withdraw his/her PF then he/she should get Rs.2880/-
But he/she will get only 2833/- after deducting 1.61% admin charges.
I am right?
Pls reply.
Simran