Hi, I would like to clarify the following 1. method of calculating PF 2. Who are the people eligible for deduct PF 3. What could be the exact salary break up if a person monthly salary is Rs10000
From United Arab Emirates, Dubai
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3From United Arab Emirates, Dubai
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Hi, I would like to clarify the following:
1. Method of calculating PF
2. Who are the people eligible for deducting PF
3. What could be the exact salary breakup if a person's monthly salary is Rs. 10,000?
Answers:
1) PF is generally 12% of basic+DA, but sometimes companies have a fixed amount of PF, say 660 or 780.
2) Establishments employing 20 or more persons are required to deduct PF from the salary of employees.
3) The salary breakup for a monthly salary of Rs. 10,000 is not fixed. It varies from company to company. But, in general, it includes Basic, Conveyance (800), HRA (40% or 50% of Basic), special allowance, medical allowance, etc.
Hope this answers all your questions.
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1. Method of calculating PF
2. Who are the people eligible for deducting PF
3. What could be the exact salary breakup if a person's monthly salary is Rs. 10,000?
Answers:
1) PF is generally 12% of basic+DA, but sometimes companies have a fixed amount of PF, say 660 or 780.
2) Establishments employing 20 or more persons are required to deduct PF from the salary of employees.
3) The salary breakup for a monthly salary of Rs. 10,000 is not fixed. It varies from company to company. But, in general, it includes Basic, Conveyance (800), HRA (40% or 50% of Basic), special allowance, medical allowance, etc.
Hope this answers all your questions.
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Dear All, Please find attached which can help u . Regards Vipin
From India, New Delhi
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From India, New Delhi
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I have a query. Is the PF calculated as a 12% contribution from both the employee and the employer, right? That means the company contributes 12% of the basic salary of the employee separately and does not deduct it from the employee's salary every month, correct?
Because my basic salary was Rs. 6500, and my company was deducting 24% monthly as PF contribution, not contributing separately. Kindly guide me on this. My salary was Rs 13000, with a basic of Rs. 6500, and the monthly deduction was 24%, i.e., Rs. 1560 (which should have actually been Rs. 780). Kindly calculate my PF amount for one year.
From India, Mumbai
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Because my basic salary was Rs. 6500, and my company was deducting 24% monthly as PF contribution, not contributing separately. Kindly guide me on this. My salary was Rs 13000, with a basic of Rs. 6500, and the monthly deduction was 24%, i.e., Rs. 1560 (which should have actually been Rs. 780). Kindly calculate my PF amount for one year.
From India, Mumbai
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Mr. Gaurish,
PF Wages consist of Basic+VDA+FDA+Lunch Allowance, etc. Generally, 12% of wages will be deducted from the employee's salary, and the same amount, 12%, will be added by the employer.
Suppose:
Basic 6500
Less PF (12%) 780
Net Salary 5720
Ur PF Contribution 780
Less 8.33% on 6500 541 (To your Pension Fund)
Ur Balance amount in PF 239
Add Employer 12% Contribution 780
So, your PF Contribution is 780/- (12% of 6500/-), and the Employer PF Contribution is 780.
Out of your contribution, 8.33% of 6500 (i.e., 541) goes to your Pension Fund. The rest of your contribution, 3.67% (Rs. 239), and the Employer Contribution to you, i.e., 12% (780), together amount to Rs. 1019/- that goes to your Provident Fund Account.
I hope your PF Salary is 13000/- with Basic at 6500, and you may be paid DA or (VDA + FDA) and Lunch Allowance.
If your PF Salary is 10000/- (Your PF deduction is 1200/-, and the employer PF Contribution is 1200, out of 2400, Rs. 541 (8.33% of Rs. 6500) goes to your pension fund, and the rest, 1859, goes to your Provident Fund.
Note: If PF Wage is more than 6500/-, an amount of 541 (i.e., 8.33% on 6500) only goes to the Pension fund.
If you have any doubts, please provide your wage components, and I will clarify your doubts.
Regards,
PB Rama Swaroop
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PF Wages consist of Basic+VDA+FDA+Lunch Allowance, etc. Generally, 12% of wages will be deducted from the employee's salary, and the same amount, 12%, will be added by the employer.
Suppose:
Basic 6500
Less PF (12%) 780
Net Salary 5720
Ur PF Contribution 780
Less 8.33% on 6500 541 (To your Pension Fund)
Ur Balance amount in PF 239
Add Employer 12% Contribution 780
So, your PF Contribution is 780/- (12% of 6500/-), and the Employer PF Contribution is 780.
Out of your contribution, 8.33% of 6500 (i.e., 541) goes to your Pension Fund. The rest of your contribution, 3.67% (Rs. 239), and the Employer Contribution to you, i.e., 12% (780), together amount to Rs. 1019/- that goes to your Provident Fund Account.
I hope your PF Salary is 13000/- with Basic at 6500, and you may be paid DA or (VDA + FDA) and Lunch Allowance.
If your PF Salary is 10000/- (Your PF deduction is 1200/-, and the employer PF Contribution is 1200, out of 2400, Rs. 541 (8.33% of Rs. 6500) goes to your pension fund, and the rest, 1859, goes to your Provident Fund.
Note: If PF Wage is more than 6500/-, an amount of 541 (i.e., 8.33% on 6500) only goes to the Pension fund.
If you have any doubts, please provide your wage components, and I will clarify your doubts.
Regards,
PB Rama Swaroop
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Dear Sir I am newly prepare the pf statement how much salary minimum applicable in PF apply in the employee regards Prabhu
From India, Madras
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From India, Madras
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Dear Sir,
I would like to know if there are any new amendments or notifications regarding the change in the PF components. For example, if an employee has components of Basic, DA, HRA, Conveyance, and Special Allowance. Normally, for PF calculation, we consider Basic + DA. However, I have recently learned that if the sum of Basic + DA is less than 6500.00, then Special Allowance should also be considered as a PF component, and PF should be calculated on Basic + DA + Special Allowance.
Kindly clarify the above.
Regards,
Saraswathi.P
From India, Bangalore
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I would like to know if there are any new amendments or notifications regarding the change in the PF components. For example, if an employee has components of Basic, DA, HRA, Conveyance, and Special Allowance. Normally, for PF calculation, we consider Basic + DA. However, I have recently learned that if the sum of Basic + DA is less than 6500.00, then Special Allowance should also be considered as a PF component, and PF should be calculated on Basic + DA + Special Allowance.
Kindly clarify the above.
Regards,
Saraswathi.P
From India, Bangalore
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Dear Seniors,
Greetings of the Day!
Hope you all are doing well. This is Kavita, and I am working in a software company. My query is about pension. My queries are as follows:
1. How to get the pension?
2. Types of Pension.
3. What are the conditions of pensions?
4. And how to calculate the pension?
5. What is the minimum age and how many years of service are required for this?
My humble request to all my seniors is to please provide details on the above topics, and if you could share complete details on this, it would be highly appreciated.
Thanks & Regards,
Kavita Gupta
Executive - HR
From India, Hyderabad
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Greetings of the Day!
Hope you all are doing well. This is Kavita, and I am working in a software company. My query is about pension. My queries are as follows:
1. How to get the pension?
2. Types of Pension.
3. What are the conditions of pensions?
4. And how to calculate the pension?
5. What is the minimum age and how many years of service are required for this?
My humble request to all my seniors is to please provide details on the above topics, and if you could share complete details on this, it would be highly appreciated.
Thanks & Regards,
Kavita Gupta
Executive - HR
From India, Hyderabad
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PF - 12% of employer
PF - 3.67% of employer
Pension - 8.33% of employer
Admin charge - 1.1% of employer
Inspection charge - 0.005% of employer
EDLI - 0.5% of employer
Maximum limit of basic + VDE + DA will be Rs. 6500
Rajbir
From India, Coimbatore
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PF - 3.67% of employer
Pension - 8.33% of employer
Admin charge - 1.1% of employer
Inspection charge - 0.005% of employer
EDLI - 0.5% of employer
Maximum limit of basic + VDE + DA will be Rs. 6500
Rajbir
From India, Coimbatore
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Hi Soumya,
Please inform me about all the forms related to PF. Specifically:
- Form no. xxx for PF application
- Form no. xxx for registering a company for PF
- Form no. xxx for transferring PF
- Form no. xxx for closing a PF account
I would appreciate it if you could provide me with details about PF forms.
Regards,
Soumya
From India, Mumbai
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Please inform me about all the forms related to PF. Specifically:
- Form no. xxx for PF application
- Form no. xxx for registering a company for PF
- Form no. xxx for transferring PF
- Form no. xxx for closing a PF account
I would appreciate it if you could provide me with details about PF forms.
Regards,
Soumya
From India, Mumbai
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Dear All,
I have a little confusion in the method of calculation of PF. Before 2011, PF calculation was based on 3 conditions that were outlined in the HR policy of that particular company.
In the first condition, PF(EE) was calculated on Basic Payable salary with no ceiling.
In the 2nd condition, PF was calculated based on the ceiling limit of 6500/-.
And in the 3rd condition, PF would be deducted from those employees' accounts whose basic salary is up to 6500/-.
However, I am confused about whether in the 2nd and 3rd conditions, the 6500/- is the ceiling limit of Basic payable wages or basic pension wages.
Kindly help me out as I am stuck and unable to understand the practice of PF in either case.
Thanks in advance,
Nupur Shukla
From India, Noida
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I have a little confusion in the method of calculation of PF. Before 2011, PF calculation was based on 3 conditions that were outlined in the HR policy of that particular company.
In the first condition, PF(EE) was calculated on Basic Payable salary with no ceiling.
In the 2nd condition, PF was calculated based on the ceiling limit of 6500/-.
And in the 3rd condition, PF would be deducted from those employees' accounts whose basic salary is up to 6500/-.
However, I am confused about whether in the 2nd and 3rd conditions, the 6500/- is the ceiling limit of Basic payable wages or basic pension wages.
Kindly help me out as I am stuck and unable to understand the practice of PF in either case.
Thanks in advance,
Nupur Shukla
From India, Noida
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Sir,
My first question is, is it possible and right for an employer to choose not to contribute to PF for employees?
The second question, which relates to the first, is as follows: my employer is requesting either a 25% deduction from my current basic salary or a reduction in the basic salary followed by a 25% deduction. In both scenarios, the employer will not make any contributions. Is this correct?
Thank you.
From India, Bengaluru
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My first question is, is it possible and right for an employer to choose not to contribute to PF for employees?
The second question, which relates to the first, is as follows: my employer is requesting either a 25% deduction from my current basic salary or a reduction in the basic salary followed by a 25% deduction. In both scenarios, the employer will not make any contributions. Is this correct?
Thank you.
From India, Bengaluru
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Hi Rebecca/Saraswathi,
You should refer to this article: Provident Fund - What you need to know. It pretty much covers all the questions that you may have regarding Provident Fund.
Another pretty useful article is the one on how to register for PF. Registering for Provident Fund - Step by Step guide. I've also attached the PDFs of these articles to this email.
From India, Mumbai
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You should refer to this article: Provident Fund - What you need to know. It pretty much covers all the questions that you may have regarding Provident Fund.
Another pretty useful article is the one on how to register for PF. Registering for Provident Fund - Step by Step guide. I've also attached the PDFs of these articles to this email.
From India, Mumbai
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
Salary Sheet & PF PT Calculation & Challan.xls