Understanding My Salary Deductions: How to Calculate PF from Basic and Allowances?

My basic salary constitutes Rs. 8000. My HRA is 50% of Basic - Rs. 400. Conveyance allowance is Rs. 800 and Ad Hoc allowance is Rs. 13,780. My deduction for PT comes to Rs. 200. What would be my deduction for PF in the above case? Please help me with the above query.

Thanks.

It seems you have made a mistake in the HRA percentage. In your case, the PF deduction would be Rs. 960/-, i.e., 12% of your basic salary if the basic pay is equal to or more than the minimum wage rate applicable to your category of employees in the scheduled industry you are in.

Thank you.

Regards.

Section 2(b) is interpreted by the enforcement authority as "Basic wages" means all allowances excluding DA & OT. So, in such a case, PF to be calculated is 12% of your salary, i.e., Rs. 15,000/-.

However, the Government is proposing to amend the above clause to consider only wages and not Basic wages. If the above amendment is enforced, then there may not be any interpretation about the definition of wages as far as PF is concerned.

Regards,
S. Rajasekaran

I was stunned on reading your above statement. I was taking a pause for comments by other learned members in this forum on your above statement. Now I cannot wait for more and compel myself to write this. I started doubting my knowledge since there is no comment by any member on this statement. To update my knowledge and correct myself, can I ask you to elaborate on your above statement? Is there any supporting evidence with the enforcement authority to substantiate their interpretation? What is the consensus within the HR fraternity regarding the acceptance of the interpretation by enforcement officers?

I am aware of the above proposed amendment and agree with this statement.

Regards