Salary of Rs. 20,000: How Much PF Will Be Deducted from My Pay?

Hello seniors,

I want to ask a question: if one has a salary of Rs. 20,000, how much PF will be deducted for the same?

Dear Bhavesh,

PF is also calculated on the basic+DA. The employer contributes 13.61% on the basic+DA, and the employee contributes 12% on the basic+DA.

Chitra

For any employee whose salary is about Rs. 15,000, PPF will be deducted from their salary only up to Rs. 15,000. Therefore, you need to compute PF at 15000 x 12% and deduct it from the salary.

In addition, the employer needs to contribute the same amount and also pay an administrative fee of 1.1%.

@Chitra Kaushik,

If I am not mistaken, administration charges for PF (A/C no. 2) would now be 0.85% instead of 1.10%, and, by this adjustment, the total contribution from the employer's side would be 13.36%. Kindly confirm the same.

Thanks & Regards

Hi Seniors,

I wanted to ask, in the case of a new joiner and absenteeism, how will PF be deducted for those whose PF deduction is Rs.1800/- per month for gross salary equal to and above Rs.15000/-?

Thanks & Regards,
Hetal

PF will be deducted on the actual salary paid. If the salary after deduction for absence is above 15000, PF will be paid on the maximum limit; else, it will be 12% of the actual salary (of course, you are required only to see basic + DA and not the gross salary).