Pf Deduction - Docx Download

Hi,
I have gone through several discussions and found that:
1. PF is deducted @ 12% of the Basic Salary + DA.
ex: if the basic salary is 6500 of any employee, his PF deduction would be 780/-.... Right ?
2. But, If basic salary is more than 6500, let's say, Rs.22750/- then what would be his/her PF deduction ??
ex: 22750 X 12% = 2730/-
Now, what I want to know is that my second calculation is correct or not ?? OR Rs. 780/- is fixed for those who are drawing more than BS 6500/-. Is there any rule that Rs. 780/- is maximum amount that can be deducted as PF deduction ??

Hi,
As per my knowledge there are some PF conditions
1. EE-0 ER-0
2. EE-Ceiling ER- Ceiling
3. EE-Actual ER-Ceiling
4. EE- Actual ER- Actual
most of the companies will follow 2nd option in that whatever the Basic is there but they should deduct only 780/- Rs and Employer Contribution will be on ceiling, if Basic is less than 6500 then it will be calculate on Actual for Ex; Basic-3500 then 3500*12%.from both EE and ER
If more then 6500 then only 780 from EE and ER.
in 3rd condition; if EE is paying on his actual like Basic is 20000 then it will be 20000*12% but ER will contribute on Ceiling Ex; 6500*12%
But almost companies will follow the 2nd option.
Hope its your concept cleared

Hi,
As per my knowledge there are some PF conditions
1. EE-0 ER-0
2. EE-Ceiling ER- Ceiling
3. EE-Actual ER-Ceiling
4. EE- Actual ER- Actual
most of the companies will follow 2nd option in that whatever the Basic is there but they should deduct only 780/- Rs and Employer Contribution will be on ceiling, if Basic is less than 6500 then it will be calculate on Actual for Ex; Basic-3500 then 3500*12%.from both EE and ER
If more then 6500 then only 780 from EE and ER.
in 3rd condition; if EE is paying on his actual like Basic is 20000 then it will be 20000*12% but ER will contribute on Ceiling Ex; 6500*12%
But almost companies will follow the 2nd option.
Hope your concept cleared

Rimpi Tyagi,
There is no law to the effect that you cannot deduct more than Rs 780/-pm towards EPF from the employees salary.
Varghese Mathew
09961266966

Thanku all for your valuable inputs..
So, it is optional for the employee as to how much he/she wants to get his/her salary deducted as PF. but most of us follow that second option. .... :)
My Second question is:
What is payroll system??
attendance preparation, leave records, salary preparation and ESIC, PF, Gratuity deductions, that is it or something more is there ??? does it include Taxes calculation and payment also ?

hi Anchal,
I thing there is BER (Business Expense Reimbursement) report also in Payroll.
Regards
Jesmin

Hi Anchal
Yes its total Payroll and TDS calculation of Employee.
1.Leave management
2.salary Calculation( Earnings And deductions)
3.TDS Calculations
4.Salary Slip

thanku all and thanku AADI,
We just got 5 holidays, 3 RH and 18 CL (1.5 per month), that's all written in our leave policy. Could you please share any format for leave management.
And, i have understood PF, thanks for your directions. ESIC deduction percentages are 1.75% (Employee) and 4.75% (Employer), if i am not wrong ??
Now please explain TDS Deduction. i am completely new to this.
-
Anchal

Hi jesmin,
What is this BER?? could you please explain...
-
Anchal

Hi,Your right on the esic contributions.TDS calculation is so simple if you know all the sections where employee will get exemptions.