In the company I am associated with, we have been contributing employees provident fund at a rate of 12% of basic salary.
Basic salary was calculated at 30% gross salary.
Thus if an employees gross salary is 10000, PF contribution = 10000*30%*12% = 360INR
However, we have been intimated from our PF office that the contribution should be 12% of Gross salary - HRA
Thus if gross salary is 10000, and HRA is 1200, PF contribution = (10000-1200)*12%=1056
Please suggest if the above calculation of using gross salary minus HRA is correct.
Basic salary was calculated at 30% gross salary.
Thus if an employees gross salary is 10000, PF contribution = 10000*30%*12% = 360INR
However, we have been intimated from our PF office that the contribution should be 12% of Gross salary - HRA
Thus if gross salary is 10000, and HRA is 1200, PF contribution = (10000-1200)*12%=1056
Please suggest if the above calculation of using gross salary minus HRA is correct.