How Do I Calculate PF Deductions for Salaries Between 8000 and 30000? Need Help!

N Ganesan

Hi, I am Ganesh. In my company, people are receiving a take-home salary ranging from 8000 to 30000 PM. Now, we would like to deduct PF from the salary. Please suggest how to calculate the same for the range of 8000 to 30000 (multiples of 1000/-).

Thank you.

alphonsegt

Dear Mr. Ganesh,

You have to deduct the PF according to their basic salary. In some companies, they will deduct from the total salary. Please ensure you follow the same formula for recovery.

Regards,
HR Alphonse
9443625359

saswatabanerjee

You are required to deduct 12% of basic and DA from the salary. Gross salary or take-home does not matter.

If the salary (basic and DA only) of the person exceeds ₹15000, then PF deduction will be 12% of ₹15000 only.

You will also need to pay an equal amount out of the company funds to the PF department as the employer's contribution.

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