Understanding PF Calculation and Allowances
How is the amount of 780 calculated and paid for Provident Fund (PF)? What is the purpose of giving allowances? If an employee's monthly salary is 5000 (basic includes DA), is he or she eligible for PF? Does the amount of 6500 vary from company to company? Please clear my doubts as soon as possible.
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From India, Bangalore
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How is the amount of 780 calculated and paid for Provident Fund (PF)? What is the purpose of giving allowances? If an employee's monthly salary is 5000 (basic includes DA), is he or she eligible for PF? Does the amount of 6500 vary from company to company? Please clear my doubts as soon as possible.
Regards
From India, Bangalore
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Calculation and Payment of PF: Understanding the Rs. 780 Deduction
As per the EPF & Miscellaneous Act 1952, the ceiling limit of the monthly salary is Rs. 6,500. Accordingly, a deduction of 12%, i.e., Rs. 780, is statutory. Regarding the contribution on the actual salary above the ceiling limit, it is optional.
Purpose of Giving Allowances
Allowances are given to employees for their benefit.
Eligibility for PF with a Monthly Salary of Rs. 5,000
If an employee's monthly salary is Rs. 5,000 (basic includes DA), are they eligible for PF? Yes, he/she is eligible for PF as the ceiling limit of the monthly salary is Rs. 6,500.
Uniformity of the Rs. 6,500 Ceiling Across Companies
Does the amount Rs. 6,500 vary from company to company? No, because it is decided by the PF Department.
From India, Jamshedpur
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3As per the EPF & Miscellaneous Act 1952, the ceiling limit of the monthly salary is Rs. 6,500. Accordingly, a deduction of 12%, i.e., Rs. 780, is statutory. Regarding the contribution on the actual salary above the ceiling limit, it is optional.
Purpose of Giving Allowances
Allowances are given to employees for their benefit.
Eligibility for PF with a Monthly Salary of Rs. 5,000
If an employee's monthly salary is Rs. 5,000 (basic includes DA), are they eligible for PF? Yes, he/she is eligible for PF as the ceiling limit of the monthly salary is Rs. 6,500.
Uniformity of the Rs. 6,500 Ceiling Across Companies
Does the amount Rs. 6,500 vary from company to company? No, because it is decided by the PF Department.
From India, Jamshedpur
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BONUS CALCULATION FOR W.B.Govt employee for 2010-2011.xls
1 Guidlines On PF to be charged on all other allowances 05032019.pdf