Hiiii........., hey want to know if PF is calculated on basic, for eg if the basic is 15,000Rs is PF calculated only on 6500 Rs or on the whole amount of 15,000RS. Regards namrata
From India, Bangalore
Acknowledge(0)
Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Namrata,
You haven't exactly mentioned if the basic amount is Rs. 6500 or Rs. 15000. If your basic salary is Rs. 15000, then the PF deduction would be 12% of it, which is Rs. 1800. Basic salary is normally around 40%-45% of your gross pay.
Hope this helps.
Regards,
Sajal
From India, Bangalore
Acknowledge(0)Amend(0)
2You haven't exactly mentioned if the basic amount is Rs. 6500 or Rs. 15000. If your basic salary is Rs. 15000, then the PF deduction would be 12% of it, which is Rs. 1800. Basic salary is normally around 40%-45% of your gross pay.
Hope this helps.
Regards,
Sajal
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Namrata,
Regarding provident fund (PF) from the employer's side, 3.67% of the basic salary goes to PF and 8.33% goes to pension. However, while calculating based on a basic salary of Rs 15,000/-, the pension amount of 8.33% (which means 6500 * 8.33) is Rs 541.45. Since the maximum amount taken for the pension fund is Rs 541, we will consider Rs 541 for pension. For the employer's PF contribution, it will be Rs 1800 - Rs 541 = Rs 1259.
Regards, HEMANT KASKAR
Acknowledge(0)Amend(0)
Regarding provident fund (PF) from the employer's side, 3.67% of the basic salary goes to PF and 8.33% goes to pension. However, while calculating based on a basic salary of Rs 15,000/-, the pension amount of 8.33% (which means 6500 * 8.33) is Rs 541.45. Since the maximum amount taken for the pension fund is Rs 541, we will consider Rs 541 for pension. For the employer's PF contribution, it will be Rs 1800 - Rs 541 = Rs 1259.
Regards, HEMANT KASKAR
Acknowledge(0)Amend(0)
Hi,
Thanks for your message. I need further clarification. Will anything exceeding the basic salary of 6500 not be considered? For example, if the basic salary is 15000, the employee's contribution would be 15000*12% = 1800, and the employer's contribution to the pension fund would be 15000*8.33% = 1249.5 and to PF would be 15000*3.67% = 551.
Does it work this way?
From India, Bangalore
Acknowledge(0)Amend(0)
Thanks for your message. I need further clarification. Will anything exceeding the basic salary of 6500 not be considered? For example, if the basic salary is 15000, the employee's contribution would be 15000*12% = 1800, and the employer's contribution to the pension fund would be 15000*8.33% = 1249.5 and to PF would be 15000*3.67% = 551.
Does it work this way?
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Namratha,
This is in response to your query. I am attaching a file regarding PF calculations herewith. Once you have gone through the file, you will clearly understand how to make PF calculations. If you have any doubts about making PF calculations, please revert to me.
Regards,
Krishna
From India, Hyderabad
Acknowledge(0)Amend(0)
This is in response to your query. I am attaching a file regarding PF calculations herewith. Once you have gone through the file, you will clearly understand how to make PF calculations. If you have any doubts about making PF calculations, please revert to me.
Regards,
Krishna
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi Krishna,
Good effort by you. As far as I am aware, PF returns need to be deposited on a yearly basis instead of half-yearly, as you mentioned in the attached sheet. I think half-yearly returns are for ESIC. Correct me if I am wrong.
Regards,
Nirmal
From India, Bangalore
Acknowledge(0)Amend(0)
Good effort by you. As far as I am aware, PF returns need to be deposited on a yearly basis instead of half-yearly, as you mentioned in the attached sheet. I think half-yearly returns are for ESIC. Correct me if I am wrong.
Regards,
Nirmal
From India, Bangalore
Acknowledge(0)Amend(0)
HI KRISHNA, in ur formula, why is there a ceiling of Rs 541 in case of employer’s pension contribution, it is not 8.33% of respective basics either regards, sharad
From India
Acknowledge(0)Amend(0)
From India
Acknowledge(0)Amend(0)
Hi,
As per the understanding of the question asked on PF, normally PF is calculated as 12% of Basic and never on total CTC. The basic salary is flexible, typically ranging from 40% to 50% of the total CTC. I hope this clarifies your query.
Best,
Bessy
Acknowledge(0)Amend(0)
As per the understanding of the question asked on PF, normally PF is calculated as 12% of Basic and never on total CTC. The basic salary is flexible, typically ranging from 40% to 50% of the total CTC. I hope this clarifies your query.
Best,
Bessy
Acknowledge(0)Amend(0)
Quite informative.
I guess two more points we need to share are:
1) Interest is calculated on a monthly basis.
2) Does anyone have data on the pension contribution by the employer since 1990? For example, is it still 8.33% of the base pay per month as it was in 1990?
Ravi Rao
From India, Pune
Acknowledge(0)Amend(0)
I guess two more points we need to share are:
1) Interest is calculated on a monthly basis.
2) Does anyone have data on the pension contribution by the employer since 1990? For example, is it still 8.33% of the base pay per month as it was in 1990?
Ravi Rao
From India, Pune
Acknowledge(0)Amend(0)
hi namrata, pf is 12% of basic which is Rs. 1800/- of this amount Rs. 541/- goes into EPS (Employee Pension Scheme) contribution. remaining Rs. 1259/- into EPF (Employee Provident Fund)
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
hai,,, employee contribution on pf will be 12% on basic i.e 15000/- but employer’s contribution will be 12% on 6500 or employer can get exempted from contribution,, with regards, Vinaykumar
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Namrata, As per PF Act Deduction of PF is on and above 6500/- is optional Its upto the company either they want to deduct on the total gross salary or on prescribed limit 6500/-
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Namrata,
As per your specification, the basic salary is 15,000/-. According to the PF rules, if the basic salary exceeds 6,500/-:
1) It is optional, not mandatory to contribute to PF.
2) The contribution can be restricted to 6,500/- only.
3) If both the employee and employer agree, you can contribute the full amount of 15,000/-.
Jeeva
9343753361
From India, Bangalore
Acknowledge(0)Amend(0)
As per your specification, the basic salary is 15,000/-. According to the PF rules, if the basic salary exceeds 6,500/-:
1) It is optional, not mandatory to contribute to PF.
2) The contribution can be restricted to 6,500/- only.
3) If both the employee and employer agree, you can contribute the full amount of 15,000/-.
Jeeva
9343753361
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf