To calculate the PF for the employee during settlement, as per our current rule:
If anybody receives less than or equal to 15000 of basic salary, then it is 1800; otherwise, it is Basic * 12%.
This is how we calculate during payroll.
During the settlement process, we are encountering issues with the employer contribution.
If an employee's last working date is 1 or 2 days into the month, then we must process the 2 days' salary in the payroll.
Let's assume the employee's per day basic pay is 700. So, for 2 days, it is 2 * 700 = 1400, which is less than 15000. Therefore, the system will deduct 1800 by default. While processing the employer contribution, we have to pay 1800. Is this correct or wrong?
What does the law state on this matter? Could you please assist me with this?
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If anybody receives less than or equal to 15000 of basic salary, then it is 1800; otherwise, it is Basic * 12%.
This is how we calculate during payroll.
During the settlement process, we are encountering issues with the employer contribution.
If an employee's last working date is 1 or 2 days into the month, then we must process the 2 days' salary in the payroll.
Let's assume the employee's per day basic pay is 700. So, for 2 days, it is 2 * 700 = 1400, which is less than 15000. Therefore, the system will deduct 1800 by default. While processing the employer contribution, we have to pay 1800. Is this correct or wrong?
What does the law state on this matter? Could you please assist me with this?
Acknowledge(0)Amend(0)
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