Confused About Provident Fund Calculation: Should It Be on Basic or Total Wage?

Dear Sir,

I have a doubt, please clarify:

If a salary structure is as follows (UNDERS SHOPS AND ESTABLISHMENT ACT-ANDHRA PRADESH):

BASIC: 4200
VDA: 4800
SPECIAL ALLOWANCES: 6000
TOTAL WAGE IS Rs 15000/-

While calculating the Provident Fund, do we have to calculate based on the BASIC of Rs 4200/- or on the TOTAL WAGE of Rs 15000/-?

Thank you, Sir.
Raviprasad

Dear Ravi Prasad,

EPF Wages means Basic + DA + VDA. You have mentioned the VDA component of Rs 4,800. You have to include VDA also for EPF Wages.

Other than HRA, you have to include all the allowances with Basic for EPF calculation, subject to the maximum of 15k.