Dear Sir,
Suppose an Employee Basic for April is Rs. 15364 on which 1800 PF is paid. Now due to increment we are paying Salary of Rs. 12350 of May basic (there is leave so the salary is less) + Arrear of Rs. 4000 of April Paying with May Salary.
What will be the PF deduction in May
Note : Assuming Employee will continue with PF even after increase subject to maximum statutory limit.
Three method :
1) Here we are going by logic that PF will be recalculated for April and Difference amt will be paid in May. Hence the calculation will be
PF on May Salary of Rs. 12350 = Rs. 1482 + PF on Arrear = 0 * = Total Rs. 1482
*No PF on Arrear calculation = (15364+4000= 19364,On which Max PF of Rs 1800 is already paid)
2) 2nd Method : PF of May Salary = 1482 + Pf on Arrear (Straight Calculation) 4000*12% = 480
= Total PF deduction 1962
3) 3rd Method : PF for the month of May = (12350 + 4000(Arrear))=16350
PF = 12% on 15000 (Max) = 1800
Now pls suggest which is correct and what will be adjustment in EPS
Regards
Suppose an Employee Basic for April is Rs. 15364 on which 1800 PF is paid. Now due to increment we are paying Salary of Rs. 12350 of May basic (there is leave so the salary is less) + Arrear of Rs. 4000 of April Paying with May Salary.
What will be the PF deduction in May
Note : Assuming Employee will continue with PF even after increase subject to maximum statutory limit.
Three method :
1) Here we are going by logic that PF will be recalculated for April and Difference amt will be paid in May. Hence the calculation will be
PF on May Salary of Rs. 12350 = Rs. 1482 + PF on Arrear = 0 * = Total Rs. 1482
*No PF on Arrear calculation = (15364+4000= 19364,On which Max PF of Rs 1800 is already paid)
2) 2nd Method : PF of May Salary = 1482 + Pf on Arrear (Straight Calculation) 4000*12% = 480
= Total PF deduction 1962
3) 3rd Method : PF for the month of May = (12350 + 4000(Arrear))=16350
PF = 12% on 15000 (Max) = 1800
Now pls suggest which is correct and what will be adjustment in EPS
Regards