Calculating PF During Employee Settlement
To calculate the PF for the employee during settlement, as per our current rule:
If anybody receives less than or equal to 15,000 of basic salary, then it is 1,800; otherwise, it is Basic * 12%.
This is how we calculate during payroll.
Issues with Employer Contribution During Settlement
During the settlement process, we are encountering issues with the employer contribution.
If an employee's last working date is 1 or 2 days into the month, then we must process the 2 days' salary in the payroll.
Let's assume the employee's per day basic pay is 700. So, for 2 days, it is 2 * 700 = 1,400, which is less than 15,000. Therefore, the system will deduct 1,800 by default. While processing the employer contribution, we have to pay 1,800. Is this correct or wrong?
What does the law state on this matter? Could you please assist me with this?
To calculate the PF for the employee during settlement, as per our current rule:
If anybody receives less than or equal to 15,000 of basic salary, then it is 1,800; otherwise, it is Basic * 12%.
This is how we calculate during payroll.
Issues with Employer Contribution During Settlement
During the settlement process, we are encountering issues with the employer contribution.
If an employee's last working date is 1 or 2 days into the month, then we must process the 2 days' salary in the payroll.
Let's assume the employee's per day basic pay is 700. So, for 2 days, it is 2 * 700 = 1,400, which is less than 15,000. Therefore, the system will deduct 1,800 by default. While processing the employer contribution, we have to pay 1,800. Is this correct or wrong?
What does the law state on this matter? Could you please assist me with this?