PF Calculation [Thread 520349]

Hi Kirubakaran,
With effect from September 01, 2014, the EPF limit has revised.
Now, Rs 15000/- is the maximum limit of basic salary for deduction of EPF, @ 12% on Rs 15000 and above basic salary amount. So, 15000 * 12% = Rs 1800/-.
But since your basic salary is less than Rs 15000/-, therefore, your actual 12% on rs 12000/- = Rs 1440/-. Pls ask your HR for excess deduction, it may be arrear EPF also since your question is not clear on the deduction whether it is one time or every month.

As per new rule , 12% deduction on the PF ceiling of Rs.15000/- is Rs.1800/- which has been deducted by your company This is the correct amount to be deducted..
thanks

Dear All,
As per latest PF rules minimum basic should be Rs.15000/-
So as per that 15000*12%=1800
this rule is with effect from September 2014.
Thanks & Regards,
Anil M

Dear Anil,
You says as per the PF rules minimum basic should be Rs. 15000/- , but I am not sure on this, because to decide minimum basic of any employee is not under the jurisdiction of PF authorities, would you please provide any link or circular regarding this.
If any employee get salary more than 15000/- , but on his pay slip basic shown only Rs. 4000/- and there is no other component such as DA , then should we deduct PF on Basic i.e. Rs. 4000/- OR we must deduct PF on Rs. 15000/-.
I will be grateful if any one can provide me a concrete rule regarding this.

Hi Kirubakaran,
As per the recent ceiling the PF basic is 15000 and the deduction will be 12% of it. i.e. Rs.1800. So it is correct.

Dear Sir Your Pf deduction is correct as per the calculations:-
Emp. Share Employer Share
Basic 12% 3.67% 8.33%
12000 1440 440 1000

A/C 01Employee Share + Employer Share

12%+3.67% = 1880(This is Your Part of CTC)

team.. please visit the below link for further clarifications
https://www.citehr.com/521814-pf-calculation.html

I do agreed that Limits of PF wages has been increased but if his Basic salary is 12000 than how can employer deduct on 15000.

Your company is calculating PF wage in Rs. 15000/-. EPFO recently raised the pension scheme wage from Rs.6500/- to Rs.15000/-.
As per this your company in calculating PF wage from Rs. 15000/- @12% =rs.1800/- but it should be on basic salary which is 12000*12%=1440 only you can discuss with the HR regarding this regards Kashish Sandhu
kashishsandhu@ymail.com

@AJAYTRENDZ thanks alot for information . But i have a doubt in my mind , PF is deducted on basic salary i think ,not on the net salary . if basic salary is less than 15000 than we will calculate the PF as per ESI Act whch is on 12000 only .. Correct me if required. . Please share the inforamtion about this so that i can be clear for PF deduction and on which salary ( net or basic salary) :)
Regards
Kashish Sandhu