I am working in the Income Tax Department as contractual staff, and my basic salary is 22500/-. What is the possible amount of deduction for my EPF contribution from my basic salary?
PF towards employee contribution is deducted from gross wages statutorily at the rate of 12% of gross wages, comprising Basic Pay, Dearness Allowance, and retaining allowance, if any, for an amount of Rs. 15,000 (which means Rs. 1800 per month). Employees are permitted to increase the contribution voluntarily.
An employee of the Income Tax Department, being a government servant, is not covered by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. However, they will be covered by the Central Government Statutory Provident Fund.
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