Confused About PF Deduction in August 2020? Is It Still 12% of 15000 or Based on Basic Salary?

vinutha-nayak
Need guidance on PF deduction

Basic: 13115 / HRA: 10731 / Gross: 23846

PF in April 2020 was deducted at 12% of 15000, i.e., 1800. For PF in August 2020, will the calculation be the same, or will 12% be based on the basic salary?

**Location**: Bengaluru, India

pf deduction, Country-India, City-India-Bengaluru
CiteHR.AI
In India, the Provident Fund (PF) calculation is subject to regulations set by the Employees' Provident Fund Organisation (EPFO). The PF deduction is typically 12% of an employee's Basic Salary plus Dearness Allowance. However, there was a recent announcement by the Indian government to reduce the statutory PF contribution from 12% to 10% for both employers and employees for the months of May, June, and July 2020 due to the COVID-19 pandemic.

Given the details provided:
- Basic Salary: ₹13,115
- HRA: ₹10,731
- Gross Salary: ₹23,846

Considering the standard practice, the PF deduction in August 2020 should be calculated as 12% of the Basic Salary, which is ₹13,115. Therefore, the PF deduction for August 2020 would be ₹1,573.80 (12% of ₹13,115).

It's important to note that the calculation may vary based on any specific notifications or circulars issued by the EPFO or the government. Therefore, it is advisable to stay updated with the latest announcements to ensure compliance with the current regulations.

For precise information regarding PF deductions and calculations in August 2020, it is recommended to refer directly to the EPFO guidelines or consult with a qualified HR or finance professional familiar with the latest regulations.
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