Confused About EPF Calculations: Should It Be Based on Basic & DA or Gross Salary?

I have some doubts regarding EPF as follows:

EPF Calculation Basis

- Should EPF be calculated based on basic & DA or Gross salary?
- If we have to calculate from basic & DA, is basic 15000 = ? and basic & DA > 6500 to

Thank you.

As per the EPF Act, PF must be calculated based on Basic + DA. Following the amendment from 2014, the basic sealing limit has been extended to Rs. 15,000. Therefore, you should consider all allowances as BASIC until the employee's salary crosses Rs. 15,000. However, some allowances are not included in this calculation, such as TA, FA, HRA, LA, Educational allowance, and Incentive (Variable).

If the basic is Rs. 15,000, then EEPF = 15,000 * 12% = 1,800 and ERPF = 15,000 * 13.1% = 1,965. Therefore, the total PF would be 3,765.

If you have any further queries, please do not hesitate to reach out.

Thank you.

As of now, please calculate the PF for the current Basic & DA. If you have any specific doubts, please contact me.

Regards,
N. Nataraajhan
Sakthi Management Services
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