Understanding PF Contributions: How Much Do Employers and Employees Really Pay?

Employee 12%
(Basic wages, dearness allowance, cash value of food concession, and retaining allowances if any)

Employer 13.61%
Contribution:
3.67% = Provident Fund (A/c No.1)
8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS - Employees Direct Linked Insurance Scheme (A/c No.21)

Administrative Charges:
1.10% of emoluments = Provident Fund (A/c No.2)
0.01% of emoluments = EDLIS (A/c No.22)

Total 25.61%

Hi Ramesh,

I'd be happy to help with your query about the allowances included for PF contribution or the definition of wages for PF deduction.

In regards to PF contributions, allowances such as basic salary, dearness allowance, house rent allowance, and special allowance are typically considered as part of the wages for PF deduction. It's important to review your company's specific policies and the guidelines set by the Provident Fund authorities to ensure accurate compliance.

If you have any further questions or need clarification, feel free to ask.

Best regards

Please solve my problem.

My basic salary is Rs. 41,000.

So, what is the PF contribution of employees and employers?

Employee: 12%
= 41,000 * 12% = 4,920

Employer: 12.00%
Contribution:
- 3.67% = Provident Fund (A/c No.1)
- 8.33% = Pension Fund (A/c No.10)
- 0.5% = EDLIS - Employees Direct Linked Insurance Scheme (A/c No.21)
Administrative Charges:
- 1.10% of emoluments = Provident Fund (A/c No.2)
- 0.01% of emoluments = EDLIS (A/c No.22)

Total: 25.61%

Subject: PF Contribution

Please solve my problem. My basic salary is Rs. 41,000.
What is the PF contribution of Employees & Employer?
Employee 12% = 41,000 * 12% = Rs. 4,920
Employer 12.00% Contribution:
Someone told me, can this be right?
3.67% = Provident Fund (A/c No.1) Rs. 4,379 (4920 - 541 = 4,379)
8.33% = Pension Fund (A/c No.10) Rs. 541 (on Rs. 6,500 * 8.33%)

Thank you.