How Do I Calculate PF for Employees with Partial Workdays in My HRMS System?

Dear Team,

Please help me with a solution for the following cases as I need to incorporate PF calculation logic into my HRMS system:

1) Basic Salary is 50,000
Special Allowance is 40,000
Preset days in a month - 5
What is the PF amount?

2) Here, the employee opted for a minimum PF contribution, i.e., 1,800 per month
Basic Salary is 50,000
Special Allowance is 40,000
Preset days in a month - 5
What is the PF amount?

Thank you.

Let's see, the gross is 90,000/-, with a number of working days being 26. So, to calculate 90000/26*5 (working days) = 17,307/- is the gross amount earned, with a PF contribution of 1,800/-.

Rajesh.S

Hi, according to your question, the total EPF wages (including basic wage and special allowance) are Rs. 90,000 per month, and the number of working days in the month of January 2024 is 5 days. The EPF deduction is as follows:

As per total wages: Total wages divided by the number of days in a month multiplied by the number of working days, i.e., 90000/31*5 = Rs. 14,516. EPF deduction is on Rs. 14,516 * 12% = Rs. 1,742.

As per only Basic wage: 50000/31*5 = Rs. 8,065. EPF deduction is on Rs. 8,065 * 12% = Rs. 968.