Confused About My Employer's PF Contribution: Is It Really Less Than 12%?

I recently joined an organization. In the CTC offered, the annual basic is Rs 272,600, and the employer contribution is Rs 9,260 annually. As far as I have heard and read, the employee and employer contribution is 12% of the basic but should not exceed Rs 6,500 monthly (according to the new rules, it seems this limit is Rs 15,000, but the current case was before this ruling).

So that makes the employer PF contribution 12% of 272,600, which is Rs 32,712, but as mentioned, it is Rs 9,260. Like my last employer, I was not asked anything related to the PF split, nor did I initiate any variation in the contribution. Where has the math gone wrong? Or do I need more enlightenment?

Dear Dineshk1389,

It seems to me as follows:

1. The company is deducting PF on a salary of Rs. 6,500/-. That is the ceiling as of August 31, 2014.

2. The contribution on Rs. 6,500/- is Rs. 780/- per month. Annually, it amounts to Rs. 9,360/-.

3. You mentioned that the company has deducted Rs. 9,260/-, which is less than Rs. 9,360/- by Rs. 100/-. You may be mistaken here. Please confirm whether it is Rs. 9,360/- or Rs. 9,260/-.

4. If it is Rs. 9,260/-, then there may be a deduction towards the loss of basic in any of the months. Please inquire with the employer about this.

Thank you.