Confused About New PF Rules? Let's Clarify Deductions Based on Your Salary Levels

Hi All,

CTC Components

My CTC components are Basic + HRA + Conveyance + Education Allowance + Personal Allowance + Performance Incentive (Fixed, not variable) + Travelling Allowance + Mobile Expenses = Gross Salary.

Bonus and PF Calculation

Bonus = 12-month Basic * 8.33%
PF = Basic * 12% (Employee as well as employer).

Confusion Regarding New PF Rules

I have some confusion regarding the new rule of PF. My confusions are as below:

1. If the basic is 15,000 & above, what would be the PF deduction for both employee & employer?
2. If the basic is less than 15,000 & gross salary is above 15,000, what would be the PF deduction for both employee & employer?
3. If both basic & gross salary are less than 15,000, what would be the PF deduction for both employee & employer?

Please help, there is too much confusion.

Dear Nilesh,

Greetings,

Regarding your query:

1) It will be 1800 from both the employee and employer.
2) If the basic is less than 15000, then it will be calculated on the gross salary excluding HRA, Bonus, and Commissions.
3) Same as the 2nd point.

Thank you.