Understanding PF Deductions: Should Allowances Be Included When Basic Salary Is Below 15000?

Dear All,

Please help me in resolving the query below:

Salary Breakdown and PF Deduction Query

Suppose my salary is as follows:
Basic: 16000
Other allowance: 4000
Gross: 20000

My PF is deducted with a capping of 15000. In a particular month, I am paid for 15 days. Therefore, is it necessary to deduct PF on 10000 (including other allowance) or should it be only on 8000?

There will not be any issue when my basic earned is more than 15000. The issue arises when my basic salary is less than 15000. In that case, is it required that we should take into account other allowances for PF contribution?

Please revert.

Hi there,

Please help me resolve the query mentioned below:

Suppose my salary is as follows:
Basic: 14122
CCA Allowance: 7250
Gross: 22784

My PF is deducted with a capping of 15000. Therefore, is it necessary to deduct PF on 21372 (including other allowances) or should it only be deducted on 14122?

Also, what is my PF contribution: 1800 or 1695?

Thank you.

Only HRA is exempted for arriving salary/wage per month for making recovery of PF. Since your basic and CCA have crossed Rs. 15,000 every month, you are liable for PF recovery of Rs. 1,800 only.