Whose basic salary is 35,000, and he wants to adopt the minimum PF contributions on the maximum PF limit of Rs. 15,000, so it's Rs. 1,800/-. If he is present for 7 days out of 26 days, then how much PF is deducted from his salary? If he is present for 15 days out of 26 days, then how much PF is deducted from his salary? If he is present for 20 days out of 26 days, then how much PF is deducted from his salary?
If they want to deduct PF on the full basic, then it's Rs. 4,200/-. If they want to not deduct PF, then it's Rs. 0.
But who agrees that if anyone adopts Option 1, then Rs. 1,800 is reduced based on attendance? Generally, PF Rs. 1,800 is not reduced up to their basic reduced up to Rs. 15,000.
Formula 1
1. =(ROUND(IF($DT48="F",(Basic)*12%,IF($DT48="N",0,IF (AND($DT48="Y",(Basic)>14999),1800/26*(7/15/20),(Basic)*12%))),0)
Formula 2
2. =(ROUND(IF($DT48="F",(Basic)*12%,IF($DT48="N",0,IF (AND($DT48="Y",(Basic)>14999),1800,(Basic)*12%))), 0)
Give your true inputs for the same. If possible, provide an EPFO circular that defines it clearly with examples. Which formula is right, formula 1 or formula 2?
Thanks
From India, Indore
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If they want to deduct PF on the full basic, then it's Rs. 4,200/-. If they want to not deduct PF, then it's Rs. 0.
But who agrees that if anyone adopts Option 1, then Rs. 1,800 is reduced based on attendance? Generally, PF Rs. 1,800 is not reduced up to their basic reduced up to Rs. 15,000.
Formula 1
1. =(ROUND(IF($DT48="F",(Basic)*12%,IF($DT48="N",0,IF (AND($DT48="Y",(Basic)>14999),1800/26*(7/15/20),(Basic)*12%))),0)
Formula 2
2. =(ROUND(IF($DT48="F",(Basic)*12%,IF($DT48="N",0,IF (AND($DT48="Y",(Basic)>14999),1800,(Basic)*12%))), 0)
Give your true inputs for the same. If possible, provide an EPFO circular that defines it clearly with examples. Which formula is right, formula 1 or formula 2?
Thanks
From India, Indore
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If the PF is restricted to 12% on Rs 15,000, then Rs 15,000 should be taken as wages, and any deduction for absence should be made from Rs 15,000. Only then will the contribution equate to the number of days present. Therefore, if the employee has worked only for 7 days out of 26 days, the PF contribution should be calculated as Rs 15,000/26 x 7 = Rs 4,038 x 12% or Rs 485. If the employee has worked for 15 days, then the PF qualifying wages should be Rs 8,654 and not Rs 15,000, even though the actual salary is Rs 20,192. However, the EPF authorities demand a contribution on Rs 15,000, stating that it is the PF qualifying salary for the month. They do not provide an answer if you ask them, "Can an employee who has non-contributory days of 15 days be given a pension contribution of Rs 1,250?"
From India, Kannur
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4526From India, Kannur
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EPFO Circular PF - Correction in Name.pdf