PF Calculation Method
PF method: Basic + DA ≥ 1500, otherwise 12% of Basic + DA.
This logic works fine for existing staff. However, for a staff member who joins in the middle of a payroll run, the software calculates PF on a pro-rata basis according to the number of days.
Example
- Date of joining: 15 April 2015
- Basic + DA = 20000 for the current month for 15 days
The system is calculating PF as 1800 * 15 / 30 = 900.
Is this in line with the PF policy?
This scenario only occurs in the first month of joining. Afterward, it calculates based on actual earnings and not the number of days.
Regards,
Rajesh
PF method: Basic + DA ≥ 1500, otherwise 12% of Basic + DA.
This logic works fine for existing staff. However, for a staff member who joins in the middle of a payroll run, the software calculates PF on a pro-rata basis according to the number of days.
Example
- Date of joining: 15 April 2015
- Basic + DA = 20000 for the current month for 15 days
The system is calculating PF as 1800 * 15 / 30 = 900.
Is this in line with the PF policy?
This scenario only occurs in the first month of joining. Afterward, it calculates based on actual earnings and not the number of days.
Regards,
Rajesh