Dear Seniors, I have a query regarding the PF calculation, for which I have already reviewed the previous discussions on Cite HR. However, referring to different discussions has left me confused.
PF Calculation Queries
My query is as follows:
A/c No 1 EPF - 12% (employee) + 3.67% (employer) - Here, the calculation is based on the employee's basic + DA.
A/c No.2 EPF Admin Charges - 0.85% - DOUBT: Is 0.85% calculated based on the actual basic + DA salary of the employee or on the total EPF amount mentioned in A/C No 1?
A/c No.10 EPS - 8.33% (employer) - DOUBT:
1. Is 8.33% calculated on the actual basic + DA of the employee?
2. If the Basic + DA of the employee is above Rs. 15,000, should we calculate this amount on Rs. 15,000 only or on the actual basic + DA?
3. If we are restricting it to Rs. 15,000, is it as per the law, or can the employer choose to pay based on the actual basic + DA of the employee, which is more than Rs. 15,000?
A/c No.21 EDLI - 0.50% - DOUBT:
1. Is it calculated based on actual basic + DA, and is there a capping of Rs. 15,000 if basic + DA exceeds 15,000?
A/c No 22 EDLI Admin Charges - 0.01% - DOUBT: (same doubt as EDLI)
Regards
From India, Mumbai
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9PF Calculation Queries
My query is as follows:
A/c No 1 EPF - 12% (employee) + 3.67% (employer) - Here, the calculation is based on the employee's basic + DA.
A/c No.2 EPF Admin Charges - 0.85% - DOUBT: Is 0.85% calculated based on the actual basic + DA salary of the employee or on the total EPF amount mentioned in A/C No 1?
A/c No.10 EPS - 8.33% (employer) - DOUBT:
1. Is 8.33% calculated on the actual basic + DA of the employee?
2. If the Basic + DA of the employee is above Rs. 15,000, should we calculate this amount on Rs. 15,000 only or on the actual basic + DA?
3. If we are restricting it to Rs. 15,000, is it as per the law, or can the employer choose to pay based on the actual basic + DA of the employee, which is more than Rs. 15,000?
A/c No.21 EDLI - 0.50% - DOUBT:
1. Is it calculated based on actual basic + DA, and is there a capping of Rs. 15,000 if basic + DA exceeds 15,000?
A/c No 22 EDLI Admin Charges - 0.01% - DOUBT: (same doubt as EDLI)
Regards
From India, Mumbai
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Understanding PF and Pension Fund Calculations
Admin charges on PF are 0.85% of the PF qualifying salary, i.e., the salary from which you have deducted the PF. The pension fund is 8.33% of ₹15,000 or the actual salary, whichever is lower. If you restrict the PF on a salary of ₹15,000, then the pension fund will be calculated on the PF qualifying salary. However, if you pay PF on the actual salary without restricting it to ₹15,000, you have to calculate the pension fund contribution at 8.33% based on ₹15,000.
Pension fund contribution at a higher salary is allowed as per the law. For more details, you may contact the PF Office.
The qualifying salary for EDLI and admin charges on EDLI is the actual salary or ₹15,000, whichever is higher. Therefore, you can cap it at ₹15,000, similar to the pension fund contribution.
Regards, Madhu.T.K
From India, Kannur
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Admin charges on PF are 0.85% of the PF qualifying salary, i.e., the salary from which you have deducted the PF. The pension fund is 8.33% of ₹15,000 or the actual salary, whichever is lower. If you restrict the PF on a salary of ₹15,000, then the pension fund will be calculated on the PF qualifying salary. However, if you pay PF on the actual salary without restricting it to ₹15,000, you have to calculate the pension fund contribution at 8.33% based on ₹15,000.
Pension fund contribution at a higher salary is allowed as per the law. For more details, you may contact the PF Office.
The qualifying salary for EDLI and admin charges on EDLI is the actual salary or ₹15,000, whichever is higher. Therefore, you can cap it at ₹15,000, similar to the pension fund contribution.
Regards, Madhu.T.K
From India, Kannur
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