Confused About PF Deduction for Part-Time Reliever: Is It 12% on Basic + DA or Gross - HRA?

Dear All, I am Manjula, working as an HR in a company. I have a doubt regarding the PF deduction for a reliever employee. An employee works for 6 days a month as a reliever. What is the rate of PF to be deducted? Is it 12% on her basic + DA or Gross - HRA amount? Kindly give clarification regarding this; it's helping me a lot.

Hi, whatever PF has already been deducted, the same process should be followed for the earnings of the next 6 days.

The same rate of PF, 12% of basic + DA, that is deducted from other employees will apply for a reliever who works for a day as well.

Hi Manjula,

The Provident Fund (PF) deduction is typically calculated as a percentage of an employee's Basic + Dearness Allowance (DA). The current standard rate for PF deduction in India is 12% of the employee's Basic + DA. This is the employee's contribution to the PF.

It's important to note that the employer also contributes an equal amount to the employee's PF account, making the total contribution 24% of the Basic + DA.

HRA (House Rent Allowance) is not considered for PF deduction. PF is based on the basic wages and dearness allowance, if any.

Therefore, in the case of a reliever employee working for 6 days a month, the PF deduction would still be based on 12% of their Basic + DA for those days. PF deduction = (Basic + DA) × 12/100

Make sure to comply with the rules and regulations set by the Employees' Provident Fund Organization (EPFO) to ensure accurate and lawful deductions. If there are specific guidelines or exemptions for reliever employees in your organization, it's advisable to consult with your company's finance or legal department for further clarification.

Thanks,