Understanding PF Calculation: Can Someone Explain How My Employer Calculates It?

Hi, can someone explain what calculations have been done by the employer to calculate the PF amount, as per the salary slip:

Basic - Rs. 18,000, E.P.F. - Rs. 780.

Until 31.08.2014, the ceiling salary for EPF was Rs. 6500. Accordingly, 12% to PF, i.e., Rs. 780, is correct. However, effective 01.09.2014, the ceiling of the salary was increased to Rs. 15000. Therefore, 12% of 15000, i.e., Rs. 1800/-, has to be remitted to PF.

Regards,
Abbas.P.S

Clarification on PF Calculation

I need some clarification for PF Calculation. The breakdown is as follows:
- Basic: Percentage from gross
- DA: Fixed Amount
- HRA: Based on the Location
- Other allowances: As applicable

Based on the above details, we can calculate PF exactly. The usual Employer PF Calculation is as follows:
- 12% from Employee (BASIC + DA + OTHER ALLOWANCE) (For PF other than HRA, all allowances should be treated as basic)
- 12% from Employer (PF Basic)
- 1.1% - Admin charges PF (PF Basic)
- 0.5% - EDLI Charges (Employee Linked Insurance)
- 0.01% - Admin Charges EDLI

The total Employer Contribution is 13.61%.

Regards,
Kavitha S

It is correct that presently PF contribution is 12% of Basic Pay. If your basic pay exceeds Rs. 15,000, then deduct Rs. 1,800. If it is less than 12% of Basic Pay for A/C No. 1, contribute 8.33% of Basic for A/C No. 10 and add 3.67% of basic pay to A/C No. 1. Administrative Expenses account for 1.10% of Basic for A/C No. 2. Additionally, EDLI is 0.5% of Basic for A/C No. 20 and 0.01% of Basic for A/C No. 21.

Please let me know if you require any further information in this regard.

Regards,
Pranab Chakraborty
[Phone Number Removed For Privacy Reasons]