Is Our Client's PF Calculation for 10 Paid Days Compliant with the PF Act?

Dear all,

I need your help in resolving the below-mentioned query regarding PF contributions:

Suppose:
- Gross salary: 30,000/month
- PF maximum ceiling: 15,000
- Rate of PF contribution: 1,800

In a particular month with 10 paid days:
PF contribution = (30,000 / 30) * 10 * 12 / 100 = 1,200

One of our clients is asking us to deposit only Rs. 600 for PF. His calculation is as follows:
- 1,800 for 30 days, so 600 for 10 days

Is the client's calculation acceptable as per the PF Act?

Thanks in advance.

As per your submission, there may be several conditions. For your ready reference, I am explaining the following:

1. The entire 30,000/- is basic, and PF contribution is restricted as per the statutory limit of 15,000/-. In that case, your calculation is correct. Your client's 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 the basic salary.

Thanks & Regards,

S K Bandyopadhyay

Thanks for your reply. Not very clear about your reply.

In your opinion, if the standard basic salary of any employee is more than 15000/ pm, then our calculation in respect of 1800 is correct. If it is less than 15000, then it should be based on the actual earned basic. We are following the same practice. Correct me if I am wrong.