Dear All,
Kindly advise me about the calculation of PF & PT at the time of resignation of an employee. For example, as per the rule, an employee needs to serve a 1-month notice period. However, if he/she served only 17 days out of the 31 days of the notice period, here is the scenario:
The company has fixed the maximum PF slab at Rs 780/- for those who are drawing more than Rs 6500/- as Basic+DA. Now, we need to pay him/her for the 14 days (31 - 17) which includes 3 days of Loss of Pay (LOP) and 14 days of Notice Period Recovery.
For those 14 days, his/her basic+DA is more than Rs 6500/-. Therefore, we have to deduct Rs 780 or calculate 780/31*14 (only the proportionate days' contribution).
Similarly, for PT, it would be Rs 200/31*14 or the full amount of Rs 200.
Please advise.
Baginesh
From India, Bangalore
Acknowledge(1)
Amend(0)
1Kindly advise me about the calculation of PF & PT at the time of resignation of an employee. For example, as per the rule, an employee needs to serve a 1-month notice period. However, if he/she served only 17 days out of the 31 days of the notice period, here is the scenario:
The company has fixed the maximum PF slab at Rs 780/- for those who are drawing more than Rs 6500/- as Basic+DA. Now, we need to pay him/her for the 14 days (31 - 17) which includes 3 days of Loss of Pay (LOP) and 14 days of Notice Period Recovery.
For those 14 days, his/her basic+DA is more than Rs 6500/-. Therefore, we have to deduct Rs 780 or calculate 780/31*14 (only the proportionate days' contribution).
Similarly, for PT, it would be Rs 200/31*14 or the full amount of Rs 200.
Please advise.
Baginesh
From India, Bangalore
Acknowledge(1)Amend(0)
PF is to be deducted out of the Basic + DA of actual salary paid only. Similarly, Profession Tax should also be deducted out of actual salary paid for the month. Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)
Dear Madhu Sir,
I have a question regarding an employee who has worked for 14 days and whose actual basic salary + DA exceeds Rs6500. Do we need to deduct the full amount of contribution for the month, which is Rs780, as the maximum PF amount fixed for those earning more than Rs6500 in basic + DA? Or should it be calculated as Rs352 (780/31*14)?
Bagi
From India, Bangalore
Acknowledge(0)Amend(0)
I have a question regarding an employee who has worked for 14 days and whose actual basic salary + DA exceeds Rs6500. Do we need to deduct the full amount of contribution for the month, which is Rs780, as the maximum PF amount fixed for those earning more than Rs6500 in basic + DA? Or should it be calculated as Rs352 (780/31*14)?
Bagi
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Bagi, For 14 days only u have to deduct PF Amount on Basic+DA Of 12% only morethan 6500/- charu
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Bhagi,
Although the person worked for 14 days, the basic salary for 14 days exceeds Rs. 6500/-, therefore, one must apply the same rule that was used to pay Rs. 780/- as PF. You have to deduct PF on Rs. 6500/-, i.e., Rs. 780/-
Similarly, for Professional Tax, after calculating the monthly gross, you need to determine which tax slab the monthly gross falls into and deduct the appropriate PT.
PT Slabs: (please verify the slabs with your accounts department)
- Up to Rs. 5000 - Nil
- Rs. 5000-Rs. 6000 - Rs. 60/-
- Rs. 6001-Rs. 10,000 - Rs. 80/-
- Rs. 10,001-Rs. 15,000 - Rs. 100/-
- Rs. 15,001-Rs. 20,000 - Rs. 150/-
- Rs. 20,000 and above - Rs. 200/-
I hope I have addressed your query. Feel free to reach out again.
Thanks & Regards,
Prachi Hardas
Acknowledge(0)Amend(0)
Although the person worked for 14 days, the basic salary for 14 days exceeds Rs. 6500/-, therefore, one must apply the same rule that was used to pay Rs. 780/- as PF. You have to deduct PF on Rs. 6500/-, i.e., Rs. 780/-
Similarly, for Professional Tax, after calculating the monthly gross, you need to determine which tax slab the monthly gross falls into and deduct the appropriate PT.
PT Slabs: (please verify the slabs with your accounts department)
- Up to Rs. 5000 - Nil
- Rs. 5000-Rs. 6000 - Rs. 60/-
- Rs. 6001-Rs. 10,000 - Rs. 80/-
- Rs. 10,001-Rs. 15,000 - Rs. 100/-
- Rs. 15,001-Rs. 20,000 - Rs. 150/-
- Rs. 20,000 and above - Rs. 200/-
I hope I have addressed your query. Feel free to reach out again.
Thanks & Regards,
Prachi Hardas
Acknowledge(0)Amend(0)
Dear Charu, Seema, and Prachi,
Thank you for your valuable time and suggestions. I apologize if I am wasting your time; however, I still have a doubt. Please find the attached file that I have prepared for further clarification. Kindly review the document and provide me with your feedback. Additionally, I am currently working in Bangalore and have heard that the PT slab is as follows:
- Rs. 150 for Rs. 10,000 to Rs. 14,999
- Rs. 200 for Rs. 15,000 and above
Please correct me if I am mistaken.
Bagi
From India, Bangalore
Acknowledge(0)Amend(0)
Thank you for your valuable time and suggestions. I apologize if I am wasting your time; however, I still have a doubt. Please find the attached file that I have prepared for further clarification. Kindly review the document and provide me with your feedback. Additionally, I am currently working in Bangalore and have heard that the PT slab is as follows:
- Rs. 150 for Rs. 10,000 to Rs. 14,999
- Rs. 200 for Rs. 15,000 and above
Please correct me if I am mistaken.
Bagi
From India, Bangalore
Acknowledge(0)Amend(0)
sorry u wil get PT Slab information from google site.in case if u have any quiries please let me know charu
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi Bagi,
I have seen the calculation posted by you and also checked the Google web to understand PT Slabs in Karnataka.
As I understand, the Monthly Gross (NET BEFORE DEDUCTIONS) is Rs. 31,000/- in the given case study. Therefore, the Last Slab of PT is applicable, which is "Rs. 15,000/- and above Rs. 200/-". Consequently, you have to deduct Rs. 200/- for PT.
FYI,
Thanks & Regards,
Prachi Hardas
Acknowledge(0)Amend(0)
I have seen the calculation posted by you and also checked the Google web to understand PT Slabs in Karnataka.
As I understand, the Monthly Gross (NET BEFORE DEDUCTIONS) is Rs. 31,000/- in the given case study. Therefore, the Last Slab of PT is applicable, which is "Rs. 15,000/- and above Rs. 200/-". Consequently, you have to deduct Rs. 200/- for PT.
FYI,
Thanks & Regards,
Prachi Hardas
Acknowledge(0)Amend(0)
Dear Bagi,
PF Deduction Calculation
Deduction of PF at 12% is considered only on the earnings of basic + DA and not based on the number of working days. If the salary of basic + DA goes beyond Rs 6500, which is the ceiling for PF, within 14 days worked, you should deduct Rs 780 as PF contribution. Simultaneously, you should calculate the deduction for the remaining 17 days' wages in the Full and Final Settlement using the following formula: Gross salary / 26 * 17 days.
Notice Period and PF Calculation
There is no need to worry about PF calculation during the Notice Period. The notice period is solely based on company internal policy and not related to PF.
Regards,
K. Ganesh
From India, Madras
Acknowledge(0)Amend(0)
PF Deduction Calculation
Deduction of PF at 12% is considered only on the earnings of basic + DA and not based on the number of working days. If the salary of basic + DA goes beyond Rs 6500, which is the ceiling for PF, within 14 days worked, you should deduct Rs 780 as PF contribution. Simultaneously, you should calculate the deduction for the remaining 17 days' wages in the Full and Final Settlement using the following formula: Gross salary / 26 * 17 days.
Notice Period and PF Calculation
There is no need to worry about PF calculation during the Notice Period. The notice period is solely based on company internal policy and not related to PF.
Regards,
K. Ganesh
From India, Madras
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.
Remittances for Professional Tax, PF and ESI.pdf
Professional tax hyderabad.doc
PF CHALLAN & CALCULATION SHEET.xls