One of our client is asking us to deposit less PF - Is clients calculation acceptable?

santnikita
Dear all,
Need your help in resolving below mentioned query of PF contribution:
Suppose
gross salary:30000/pm
Pf maximum ceiling:15000
Rate of pf contribution:1800
In particular month paid days:10 days
Pf contribution:30000/30*10*12/100=1200
One of our client is asking us to deposit PF of Rs. 600/ only
His calculation is
1800 for 30 days, so 600 for 10 days
Is clients calculation acceptable as per Pf Act???
Thanks in advance.
nanu1953
As per your submission, there may be several conditions. For your ready reference I am explaining the following:-
1. Entire 30,000/- is basic and PF contribution is restricted as per statutory limit 15,000/-. Inthat case your calculation is right . Your clients calculation is wrong.
2. Suppose the Basic is 20,000/- and 10,000/- is other allowances. In that case the calculation will be 20,000/30*10*12/100 = 800/- and so depending on basic salary.
Thanks & Regds.,
S K Bandyopadhyay
santnikita
Thanks for your reply. Not very clear about your reply.
In your opinion, if standard basic salary of any emoyee is more than 15000/ pm, then our calculation in respect of 1800 is correct and if it is less than 15000, then it should be on actaul earned basic. But same practise we are following. Correct me if I am wrong.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute