Confused About PF Calculation? Need Help Understanding Employee Deductions!

PF Calculation Details

Please help me figure out the details of PF calculation. If the employee is earning more than Rs. 6500, it involves a 12% employee contribution, a 12% employer contribution, and a 1% admin charge, totaling 25% of the basic salary, stipend, and arrears. If the employee is earning less than Rs. 6500, the employer pays 12%, but the employee is not obligated to pay. Is this correct? How much is deducted from the employee's salary?

Please help!

Regards,
Abhipsa

PF Calculations with Challan Details

Account 1 (PF) -
- Employee Share: 12%
- Employer Share towards PF: 3.67% + excess of Rs. 541

Account 2 (Admin Charges for PF) -
- Employee Share: NIL
- Employer Share: 1.10%

Account 10 (Pension Fund) -
- Employee Share: NIL
- Employer Share: 8.33% subject to limit Rs. 541

Account 21 (Insurance Fund) -
- Employee Share: NIL
- Employer Share: 0.5%

Account 22 (Admin Charges for Insurance Fund) -
- Employee Share: NIL
- Employer Share: 0.01%

If the salary of the employee is more than Rs. 6500, then the PF contribution payable by the employer is only limited to Rs. 6500 (or the employer may wish to pay more) as per Para 26A(2) of the PF Scheme.

Additional Points on PF Contribution

A few points to add with Mr. Akhil:

- Salary means Basic + DA.
- An employee can contribute more than 12% of their salary in PF, which is known as Voluntary PF contribution.
- In the case of an Exempted PF Trust, the amount of the employer's share in A/C No.2 will be at 0.18%.

Thanks & Regards,
Subhra Bhattacharya.

I have a query regarding PF calculation and PF deduction. How can I get it resolved? I have been working since 1983 and took VRS in 2004. The company has not made any provision for a pension. How can I get my pension benefits? Also, PF is deducted only on the basic salary, excluding dearness allowances. Can they do so? The company is registered under the Companies Act, and the PF Act is applicable from 1982.

Dear All, Please find enclosed herewith attachment of PF (provident fund ) administrative charges revised notification w.e.f. 1st January 2015
Reduction in Rate of Administrative Charges from 1.1 % to 0.85°%.(A/C 02).

PF (Provident Fund) administrative charges have been revised as per the notification effective from 1st January 2015. Details of the revision are as follows:

Previous Rule:
1. For NO Employee: minimum Rs. 5 in A/c 2 and Rs. 2 in A/c 22.
2. For Others: 1.1% in A/c 2 and 0.01% in A/c 22.

New Rule:
1. For NO Employee: minimum Rs. 75 in A/c 2 and Rs. 25 in A/c 22.
2. For Others:
- Calculate A/c 2 at 0.85%. If it amounts to less than Rs. 500, a minimum of Rs. 500 is to be paid.
- A/c 22 at 0.01%, same as before, but if it amounts to less than Rs. 200, a flat payment of Rs. 200 is required.