Understanding PF Contributions: How Does a Basic Salary Over 15000 Affect Your Amount?

I want to know if my basic salary is above 15000, what will be my PF amount?

For example, if my basic salary is 20000, what will be my PF contribution - 1800 or 2400?

You can do it either way, take 12% of 20,000 or restrict it to 12% of 15,000. This depends upon the company's policy. Companies which consider provident fund as a statutory obligation will restrict the contribution to 12% of Rs 15,000, whereas others will take it on actual salary. The latter is beneficial to the employees in the long run, though their take-home salary will be less when they contribute based on actual salary.

Basic salary is $16,000. I worked 10 days in September, and my salary was $5,333. I have a question regarding the deduction of PF share on the amount of $5,333. The PF limit is $15,000, and for 10 days, the amount will be $5,000. I am unsure on which amount PF will be deducted. Can you please help clarify this for me?

Thank you.

If you have worked for only 10 days, proportionately deduct the PF qualifying salary to the salary payable for those ten days. For example, if your PF is calculated on Rs 16,000, consider this as the PF qualifying salary for 30 days and determine the amount for 10 days. This would naturally amount to Rs 5,333, and PF should be deducted at 12% of this Rs 5,333.

If your company caps your PF contribution at Rs 15,000, then the PF qualifying salary for 10 days would be Rs 5,000, and the contribution will be based on this amount of Rs 5,000.