Confused About PF Deductions? Let's Discuss How It's Calculated on Basic Pay

Dear Sir,

I have a problem in my company. If a person's basic pay is 8400 rupees and he works for 20 days in the month of September, then the amount for 20 days is 5600 rupees, which is the gross salary. The 12% PF would be calculated on 8400, not on 5600. The deduction would then be made from the calculated 12% of 8400.

Thank you.

5600 is the eligible amount for EPF/EPS. EPF Wages: 5600 EPS Wages: 5600 EPF Contribution: 672 EPS Contribution: 466 Difference: 206 NCP Days: 10

If you have any further questions or need clarification, feel free to ask.

Dear SK,

PF/ESI/Taxes, etc., all such implications will be on earned wages/salary, not the rated wages/salary. In the instant query, Rs. 5600/ is the answer, on which PF will be applicable being 20 paid days' wages/salary.

Regds,
RDS Yadav
DIRECTOR, Future Instt. of Management and Technology
and Labour Law Adviser,
navtaranghrs@gmail.com