Epf calculation - Need to calculate on Basic + all Allowances - HRA or Only on Basic 12%?

Hi Sir/ Madam , Please suggest how to deduct EPF. Our employees salary is more than 25000 per month, Need to calculate on Basic + all Allowances - HRA or Only on Basic 12%.

Dear Friend,
Keep you basic capped at 15000 (including all allowances except HRA) and calculate @ 12%.
If your employee Baisc is more than 25,000 then your calculation will be capping @ 15000*12% =1800.

Hi Ravi,
We are deducting on basic 12%(unrestricted ), so their is no capping of 15000.
effective new rule of judgement on EPF , should we deduct on Basic + All Allowances - HRA or
only on Basic 12%
Thanks

Dear Freind,
Basic+all allowances( except HRA) will consider for PF deduction of 12%.

If the Basic is less than 15,000/- per month, then PF deduction will be on (Monthly gross -HRA) . But if Basic is 15,000/- or more per month no need to add all allowances except HRA as PF authority controls up to 15,000/- Basic per month.
If the Organization decides to pay on higher side PF Contribution, they may follow same formula for all.( Monthly gross -HRA).
Thanks & Regards,
S K Bandyopadhyay (Howrah, WB)

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