Hi, Can anybody give details about PF components. I mean what are the salary component attracts PF under Employees Provident Fund Act. Its. urgent. Thanx spr
From India
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From India
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Hi, PF is only decucted from Basic Salary and the contribution is 12% of basic salary from employeer & employee’s side.
From India, Mumbai
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4From India, Mumbai
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Hi,
PF is deducted at 12% of Basic+DA/Basic only if DA is not included. This contribution comes from both employees and employers.
Out of the 12% contributed by the employer, 8.33% goes to the Pension fund, while the remaining 3.67% goes to the PF fund itself.
I hope this clarifies things for you.
Regards,
Amit Seth
From India, Ahmadabad
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PF is deducted at 12% of Basic+DA/Basic only if DA is not included. This contribution comes from both employees and employers.
Out of the 12% contributed by the employer, 8.33% goes to the Pension fund, while the remaining 3.67% goes to the PF fund itself.
I hope this clarifies things for you.
Regards,
Amit Seth
From India, Ahmadabad
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(Fact Checked)-[The information provided about PF deductions is accurate. Well explained!] (1 Acknowledge point)
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It’s 24% of the basic salary (Employer contribution (12%)+ Employee contribution (12%)). Once the basic cross Rs.6500/- per month the contribution towards PF may change. Pratibha
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The PF Act came into effect in the year 1952. The main objective of the PF Act is to assist the employee after retirement.
- Employee contribution is 12%.
- Employer contribution is 12%.
In total, 24% goes towards the fund. Out of this, 8.33% is allocated to pension, and the remaining 15.87% is designated for family pension.
The following are the components of PF: Basics + DA.
From India, Mumbai
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- Employee contribution is 12%.
- Employer contribution is 12%.
In total, 24% goes towards the fund. Out of this, 8.33% is allocated to pension, and the remaining 15.87% is designated for family pension.
The following are the components of PF: Basics + DA.
From India, Mumbai
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HI THIS IS SHARIFF I COMPLETED MY MHRM AND NO IAM WORKING IN ONE CONSULTANT IS IT GOOD TO ME ? AND ANY BODY HEL ME WHICH ONE IS THE BETTER TO HR CAN ANY BODY SUGGEST ME WITH REGARDS SHARIFF
From India, Mumbai
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From India, Mumbai
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Hi,
Employees contribute 12% of their basic salary, while the employer contributes 13.61% of the basic salary, with 8.33% being the maximum limit on a basic salary of 6500 for the pension fund, 3.67% for PF, and the rest for administrative charges, inspection charges, and insurance charges.
Regards,
Deepak
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Employees contribute 12% of their basic salary, while the employer contributes 13.61% of the basic salary, with 8.33% being the maximum limit on a basic salary of 6500 for the pension fund, 3.67% for PF, and the rest for administrative charges, inspection charges, and insurance charges.
Regards,
Deepak
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Hi Spr, you must be thankful to so many friends for their input on your query. But let me add one more point: P.F should be calculated on Basic salary + D.A + Cash equivalent of food concession. The rest is perfectly mentioned by other friends above.
Employee's share goes to EPF - 12%
Employer's Share:
- Goes to EPF - 3.67%
- Goes to Pension Fund (FPF) - 8.33%
- Administration charges to be borne by Employer - 1.1%
- Employees' Deposit Linked Insurance (EDLI) - 0.5%
- Adm. charges to EDLI - 0.01%
TOTAL - 13.61%
Hope it will provide you with a little help. Take care.
JayPee
From India, Delhi
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Employee's share goes to EPF - 12%
Employer's Share:
- Goes to EPF - 3.67%
- Goes to Pension Fund (FPF) - 8.33%
- Administration charges to be borne by Employer - 1.1%
- Employees' Deposit Linked Insurance (EDLI) - 0.5%
- Adm. charges to EDLI - 0.01%
TOTAL - 13.61%
Hope it will provide you with a little help. Take care.
JayPee
From India, Delhi
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(Fact Checked)-The user reply contains accurate information regarding the components of PF calculation under the Employees Provident Fund Act. Well done! (1 Acknowledge point)
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Hi,
Thank you to everybody who has replied to my query. Actually, some people say that PF will be calculated on Basic + DA + Special pay + Other allowances + Food Allowance. Some of the cases booked against 7A enquiry state that special pay is also included in PF calculation. Can anybody clarify more in this regard?
Thank you,
Spr
From India
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Thank you to everybody who has replied to my query. Actually, some people say that PF will be calculated on Basic + DA + Special pay + Other allowances + Food Allowance. Some of the cases booked against 7A enquiry state that special pay is also included in PF calculation. Can anybody clarify more in this regard?
Thank you,
Spr
From India
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Dear Sir,
If you can refer to the definition of salary in the Minimum Wages Act, it includes basic pay, dearness allowance (DA), which can be a special allowance in some companies (adjusted biannually based on the price index), personal pay allowance, and allowances as part of the salary. This excludes allowances given to meet daily expenses and excludes House Rent Allowance (HRA). If we have an allowance by the name of personal allowance, it can also be included in the definition of basic salary. On this basic salary, Provident Fund (PF) is applicable.
I hope your doubt is clear now.
Thanks & Regards,
Amal Shere
From India, Mumbai
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If you can refer to the definition of salary in the Minimum Wages Act, it includes basic pay, dearness allowance (DA), which can be a special allowance in some companies (adjusted biannually based on the price index), personal pay allowance, and allowances as part of the salary. This excludes allowances given to meet daily expenses and excludes House Rent Allowance (HRA). If we have an allowance by the name of personal allowance, it can also be included in the definition of basic salary. On this basic salary, Provident Fund (PF) is applicable.
I hope your doubt is clear now.
Thanks & Regards,
Amal Shere
From India, Mumbai
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PF contribution from employees' side is 12% of the Basic Salary + Dearness Allowance (if any). The Employer will also contribute 12% for the same. Out of the employer share, 8.33% will go into EPS (pension fund), and 3.67% will go into the PF account. Therefore, in the PF account of an employee, the total contribution would be 12% + 3.67% = 15.67%.
From India, Panipat
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From India, Panipat
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(Fact Checked)-The user reply is correct regarding PF components: 12% of Basic Salary + Dearness Allowance from employee & employer each, with employer's 8.33% to EPS & 3.67% to PF. (1 Acknowledge point)
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Provident Fund - Excluded Employee - Definition.pdf
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(Fact Checked)-[The user's reply is correct.] (1 Acknowledge point)